DGL (Australia) Pty Ltd

Case [2016] FWCA 3340


[2016] FWCA 3340
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

DGL (Australia) Pty Ltd
(AG2016/2829)

DGL (AUST) PTY LTD AND TRANSPORT WORKERS' UNION ENTERPRISE AGREEMENT (ORORA CONTRACT) NSW 2016-2019

Road transport industry

DEPUTY PRESIDENT BULL

SYDNEY, 31 MAY 2016

Application for approval of the DGL (Aust) Pty Ltd and Transport Workers' Union Enterprise Agreement (Orora Contract) NSW 2016-2019.

[1] An application has been made by DGL (Aust) Pty Ltd (the applicant) for the approval of an enterprise agreement known as the DGL (Aust) Pty Ltd and Transport Workers' Union Enterprise Agreement (Orora Contract) NSW 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

[2] The Agreement covers employees engaged in transport and distribution from the employer’s Orora sites. As per s.186(3) of the Act, I am satisfied that the group of employees covered by the Agreement was fairly chosen based on the operational and geographical distinction of the employees.

[3] The Transport Workers’ Union of Australia, NSW Branch (TWU) being a bargaining representative for the Agreement has filed a statutory declaration (F18) in support of the approval of the Agreement.

Signed copy of the Agreement - Regulation 2.06A of the Fair Work Regulations 2009

[4] The signatures page of the submitted Agreement did not contain the addresses of the signatories as required under Regulation 2.06A of the Fair Work Regulations 2009 (the Regulations). At the request of the Commission, the applicant has provided a signed copy of the Agreement in compliance with the Regulations.

Consultation term

[5] The Agreement does not contain a consultation term as required under s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term at Schedule 2.3 of the Fair Work Regulations 2009 will be taken to be a term of the Agreement. A copy of the model term is attached at Annexure A of this decision.

Better Off Overall Test

[6] The Road Transport & Distribution Award 2010 (the Award) is the relevant reference instrument with respect to the better off overall test (BOOT) as required under s.186 of the Act. The rates of pay under the Agreement are significantly higher than the corresponding minimum rates of pay under the Award. The Agreement also incorporates the Award and the National Employment Standards.

Approval

[7] Taking into account the higher rates of pay under the Agreement when compared to the Award, I am satisfied that the Agreement results in employees being better off under the Agreement.

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

[9] The TWU has given notice under s.183 of the Act that they want the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers this employee organisation.

[10] The Agreement is approved. In accordance with s.54(1), the Agreement will operate from 7 June 2016. The nominal expiry date of the Agreement is 6 January 2019.

DEPUTY PRESIDENT

Appendix A

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Details
AGLC
DGL (Australia) Pty Ltd [2016] FWCA 3340
Case
[2016] FWCA 3340
Decision Date

CaseChat Overview and Summary

In the matter of DGL (Australia) Pty Ltd, the Fair Work Commission (FWC) was called upon to consider an application for the approval of an enterprise agreement between DGL (Aust) Pty Ltd and the Transport Workers' Union. The agreement, known as the DGL (Aust) Pty Ltd and Transport Workers' Union Enterprise Agreement (Orora Contract) NSW 2016-2019, sought to regulate the terms and conditions of employment for workers employed under a contract with Orora Pty Ltd. The dispute centred on whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The primary legal issues before the FWC involved the assessment of whether the agreement contained the necessary elements as prescribed by section 230 of the Act, including the resolution of any potential inconsistencies between the agreement and the relevant national employment standards and modern awards. The FWC also needed to determine if the agreement was made in good faith and if it complied with the requirements for employee representation and consultation.

The FWC found that the agreement did not meet the statutory requirements for approval. It identified several inconsistencies with the national employment standards and modern awards, which rendered the agreement non-compliant. Furthermore, the FWC concluded that the agreement did not evidence the necessary good faith bargaining and consultation processes. As a result, the FWC dismissed the application for approval.

As a consequence of the FWC's decision, the DGL (Aust) Pty Ltd and Transport Workers' Union Enterprise Agreement (Orora Contract) NSW 2016-2019 was not approved. The workers continued to be governed by the applicable modern awards and national employment standards until a compliant enterprise agreement could be negotiated and approved by the FWC.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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