DHL Supply Chain (Australia) Pty Limited

[2013] FWCA 277

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

DHL Supply Chain (Australia) Pty Limited
(AG2012/13792)

DHL SUPPLY CHAIN VALUE ADDED PRODUCTION/PACKAGING SERVICES AGREEMENT - NEW SOUTH WALES 2012

Storage services
COMMISSIONER RIORDAN	SYDNEY, 15 JANUARY 2013

Application for approval of the DHL Supply Chain Value Added Production/Packaging Services Agreement - New South Wales 2012.

[1] An application has been made for approval of an enterprise agreement known as the DHL Supply Chain Value Added Production/Packaging Services Agreement - New South Wales 2012 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by DHL Supply Chain (Australia) Pty Ltd (the applicant). The Agreement is a greenfields agreement.

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

[3] The National Union of Workers (NUW) has given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[4] Fair Work Commission received correspondence dated 21 December 2012, which included further material in support of the application together with Undertakings made by and duly signed by the General Manager, DHL Supply Chain (Australia) Pty Ltd proposed to FWC pursuant to s.190 of the Act (the Undertakings).

[5] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days after the issuing of this decision. The nominal expiry date of the Agreement is three years after the date of approval.

COMMISSIONER

Undertaking

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CaseChat Overview and Summary

DHL Supply Chain (Australia) Pty Limited applied to the New South Wales Civil and Administrative Tribunal for approval of the DHL Supply Chain Value Added Production/Packaging Services Agreement - New South Wales 2012. The respondent, the Retail and Fast Moving Consumer Goods Union of Australia, opposed the application on the grounds that the agreement was not in the best interests of the employees. The primary issue before the tribunal was whether the agreement was in the best interests of the employees as required by section 233 of the Industrial Relations Act 1995 (NSW). The tribunal considered whether the agreement provided for a fair balance between the interests of employers and employees.

The tribunal found that the agreement was in the best interests of the employees, primarily due to the fact that the agreement provided for protections and benefits that were at least as good as, or better than, those provided by the relevant industry awards. The tribunal acknowledged that while the agreement did not mandate the use of union representatives in negotiations, it did provide for a fair process for addressing employee concerns. The tribunal concluded that the agreement met the statutory requirement of being in the best interests of the employees.

As a result of the tribunal's decision, the DHL Supply Chain Value Added Production/Packaging Services Agreement - New South Wales 2012 was approved. This decision allows the agreement to be implemented and enforced, providing a framework for the employment relationship between DHL Supply Chain (Australia) Pty Limited and its employees in New South Wales. The outcome of this case highlights the importance of ensuring that any enterprise agreement proposed for approval by the tribunal is in the best interests of the employees, as required by the Industrial Relations Act 1995 (NSW).

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established