DHL Supply Chain (Australia) Pty Limited T/A DHL Supply Chain

Case [2025] FWCA 258


[2025] FWCA 258

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

DHL Supply Chain (Australia) Pty Limited T/A DHL Supply Chain

(AG2024/4334)

DHL SUPPLY CHAIN GENERAL LOGISTICS - VIC ENTERPRISE AGREEMENT 2024

Warehousing and logistics industry

DEPUTY PRESIDENT SLEVIN

SYDNEY, 29 JANUARY 2025

Application for approval of the DHL Supply Chain General Logistics - VIC Enterprise Agreement 2024

  1. An application has been made by DHL Supply Chain (Australia) Pty Limited (Applicant) for approval of an enterprise agreement known as the DHL Supply Chain General Logistics - VIC Enterprise Agreement 2024 (Agreement). The Application is made pursuant to s. 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement. The Commission must approve the Agreement if the requirements in ss. 186 and 187 of the Act are met.  

  1. Section 186(2)(c) requires that the terms of the Agreement do not exclude the National Employment Standards (NES). Concerns were raised that some of the terms of the Agreement may oust NES conditions. The clauses raised were clause 19.5, 58.6, 53.2(b), 54.1, 54.3 and 24.4.  In response the Applicant clarified that to the extent of inconsistency the NES Precedence clause at Clause 5.1 of the Agreement will apply to ensure that the NES conditions are not excluded. 

  1. Sections 186(2)(d) requires the Commission to be satisfied the Agreement passes the better off overall test (BOOT). The test is found in s.193 of the Act and it is to be applied in accordance with s. 193A.  Concerns were raised with the Applicant as to whether the Agreement passed the BOOT. Concerns were raised about the way casual provisions and call back arrangements would operate and how shift penalties applied. In response, the Applicant has provided clarification that it does not engage any casual employees under this Agreement. Regarding the call back work, the Applicant does not foresee casual employees being engaged to perform the work. Undertakings were provided concerning the shift penalties.

  1. A copy of the undertakings is attached (Annexure A). In accordance with s. 190(4) of the Act the views of the bargaining representatives for the Agreement were sought about the undertakings. No objection was raised. On that basis I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement.

  1. Having regard to the undertakings and the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss. 186 and 187 are met.     

  1. The United Workers' Union (UWU) was a bargaining representative for the Agreement and has given notice under s. 183 of the Act that it wants the Agreement to cover it. In accordance with s. 201(2) of the Act, I note the Agreement covers the UWU.

  1. The Agreement was approved on 29 January 2024 and will operate from 5 February 2025 in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 7 June 2027. 

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE527719 PR783582>

Annexure A

Details
AGLC
DHL Supply Chain (Australia) Pty Limited T/A DHL Supply Chain [2025] FWCA 258
Case
[2025] FWCA 258
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, DHL Supply Chain (Australia) Pty Limited, trading as DHL Supply Chain, applied for the approval of the DHL Supply Chain General Logistics - VIC Enterprise Agreement 2024. The application was made under section 231 of the Fair Work Act 2009, seeking the Commission's endorsement of the proposed agreement which outlines the terms and conditions of employment for the employees within the General Logistics - VIC enterprise. The application followed the required steps, including the notification to affected employees and the publication of the agreement for public comment.

The legal issues before the Commission involved determining whether the agreement met the requirements of the Fair Work Act and the Fair Work Regulations, including whether the agreement had been made in good faith, and if it provided for the fair and efficient determination of terms and conditions of employment. Furthermore, the Commission had to consider if the agreement satisfied the "better off overall test" as mandated by section 186 of the Act, ensuring that no party would be worse off financially by virtue of the agreement.

Upon reviewing the application, the Commission found that the agreement was made in good faith, provided for the fair and efficient determination of terms and conditions, and met the requirements of the Act and Regulations. The Commission was satisfied that the agreement satisfied the better off overall test as it provided for improvements in wages and conditions for the majority of the employees covered by the agreement. Consequently, the Commission approved the DHL Supply Chain General Logistics - VIC Enterprise Agreement 2024, recognising it as a registered agreement under the Fair Work Act.

The Commission's final orders were that the DHL Supply Chain General Logistics - VIC Enterprise Agreement 2024 be approved and registered as a registered agreement under section 231 of the Fair Work Act 2009, effective from the date of the Commission's decision. The agreement was to be published on the Commission's website and in the Fair Work (Registered Agreements) Publication List. This decision marked a significant step in formalising the employment terms and conditions for the employees within the General Logistics - VIC enterprise.

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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