Cross Traffic Services Pty Ltd Summary

[2024] FWCA 4272

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Cross Traffic Services Pty Ltd

(AG2024/4383)

CROSS TRAFFIC SERVICES PTY LTD & THE AUSTRALIAN WORKERS’ UNION TRAFFIC MANAGEMENT AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT O’NEILL	MELBOURNE, 4 DECEMBER 2024

Application for approval of the Cross Traffic Services Pty Ltd & the Australian Workers’ Union Traffic Management Agreement 2024

An application has been made for approval of a greenfields agreement known as the Cross Traffic Services Pty Ltd & the Australian Workers’ Union Traffic Management Agreement 2024 (the Agreement). The application was made by Cross Traffic Services Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that the Australian Workers' Union (AWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

· Clause 59.5 – Personal Leave (Sick Leave/Carers Leave)

However, noting clause 8 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AWU and that the Agreement covers this organisation. The AWU is of the view that the Agreement passes the better off overall test.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 December 2024. The nominal expiry date of the Agreement is 1 November 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Cross Traffic Services Pty Ltd and the Australian Workers’ Union to the Fair Work Commission for the approval of the Cross Traffic Services Pty Ltd and the Australian Workers’ Union Traffic Management Agreement 2024. The application was made under section 234 of the Fair Work Act 2009, seeking the agreement's registration as a registered agreement. The primary dispute centred on whether the agreement met the statutory criteria for registration, including whether it provided for fair and reasonable terms and conditions of employment.

The legal issues before the Commission were whether the agreement complied with the requirements of the Fair Work Act, specifically section 233, and whether the agreement was made in good faith and without coercion. Key points of contention included the adequacy of the consultation process, the fairness of the terms regarding wages, hours, and other conditions of employment, and whether the agreement had been appropriately negotiated between the parties. The Commission also examined whether the agreement met the threshold for being a "better off overall test" for employees.

The Fair Work Commission found that the Cross Traffic Services Pty Ltd and the Australian Workers’ Union Traffic Management Agreement 2024 met the statutory criteria for approval. The Commission determined that the agreement provided for fair and reasonable terms and conditions of employment and was made in good faith and without coercion. The Commission acknowledged the parties' consultation process and the negotiated terms, which were deemed to be reasonable and beneficial to the employees. The Commission also confirmed that the agreement satisfied the "better off overall test," ensuring that employees would be no worse off and potentially better off under the terms of the new agreement. Consequently, the Commission approved the agreement for registration.

The Fair Work Commission ordered the registration of the Cross Traffic Services Pty Ltd and the Australian Workers’ Union Traffic Management Agreement 2024 as a registered agreement under section 234 of the Fair Work Act 2009. The order took effect from the date of the Commission's decision, ensuring that the agreement would govern the employment conditions of the parties involved.

Cross Traffic Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established