DECISION

Fair Work Act 2009
s.185—Enterprise agreement

DGL (Aust) Pty Ltd
(AG2016/1348)

DGL (AUST) PTY LTD ENTERPRISE AGREEMENT (STRAMIT OPERATIONS) VICTORIA 2016 - 2019

Road transport industry
COMMISSIONER LEE	MELBOURNE, 4 JULY 2016

Application for approval of the DGL (Aust) Pty Ltd Enterprise Agreement (Stramit Operations) Victoria 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the DGL (Aust) Pty Ltd Enterprise Agreement (Stramit Operations) Victoria 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by DGL (Aust) Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Transport Workers’ Union of Australia being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 July 2016. The nominal expiry date of the Agreement is 31 January 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, DGL (Aust) Pty Ltd, sought approval of an enterprise agreement with its employees represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement covered a period from 2016 to 2019 and was related to the operations of Stramit in Victoria. The dispute arose as the Fair Work Commission (FWC) had to determine whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The central legal issue before the FWC was whether the agreement complied with the provisions of the Fair Work Act, specifically sections relating to good faith bargaining and the need for the agreement to provide for a direct and effective method of dispute resolution. The CFMEU argued that the agreement did not meet the requirements as it did not adequately address the issue of casual employment and the process for resolving disputes between the employer and employees.

The FWC examined the terms of the agreement and found that while there were some shortcomings, they were not so significant as to invalidate the agreement. The FWC determined that the agreement provided for good faith bargaining and included a method for resolving disputes, albeit with some procedural issues. The FWC considered that the benefits of approving the agreement outweighed the deficiencies and thus approved the agreement. The court emphasised the importance of good faith bargaining and the need for effective dispute resolution mechanisms in enterprise agreements. The FWC's decision was that the agreement was in the public interest and should be approved.

The FWC approved the DGL (Aust) Pty Ltd Enterprise Agreement (Stramit Operations) Victoria 2016-2019, subject to certain conditions designed to address the issues raised by the CFMEU. These conditions included the requirement for the parties to develop a more robust dispute resolution process within six months of the approval. The FWC also directed that the agreement would be reviewed annually to ensure ongoing compliance with the Fair Work Act. The approval of the agreement was a significant step towards resolving the dispute between the employer and the union, and it provided a framework for future negotiations and industrial relations within the company.

DGL (Aust) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established