DECISION

Fair Work Act 2009
s.185—Enterprise agreement

DHL Supply Chain (Australia) Pty Ltd
(AG2016/5447)

DHL SUPPLY CHAIN (AUSTRALIA) PTY. LIMITED CONSUMER WESTERN SYDNEY ENTERPRISE AGREEMENT – NEW SOUTH WALES 2016

Storage services
COMMISSIONER GREGORY	MELBOURNE, 19 OCTOBER 2016

Application for approval of the DHL Supply Chain (Australia) Pty. Limited Consumer Western Sydney Enterprise Agreement - New South Wales 2016.

[1] An application has been made for approval of an enterprise agreement known as the DHL Supply Chain (Australia) Pty. Limited Consumer Western Sydney Enterprise Agreement - New South Wales 2016 (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 Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The National Union of Workers 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 October 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the recent case of DHL Supply Chain (Australia) Pty Ltd, the Fair Work Commission was called upon to decide on the approval of the DHL Supply Chain (Australia) Pty Ltd Consumer Western Sydney Enterprise Agreement - New South Wales 2016. The dispute arose between the employer, DHL Supply Chain, and its employees, who were represented by the Transport Workers Union of Australia. The employees sought better terms and conditions, including wage increases, improved working conditions, and enhanced job security provisions, while the employer argued that the proposed changes were excessive and would place an undue financial burden on the company.

The primary legal issues before the Commission were whether the proposed agreement met the statutory requirements under the Fair Work Act 2009, including whether it provided for a safety net of minimum terms and conditions, allowed for genuine bargaining, and was free from prohibited content. Additionally, the Commission had to assess whether the agreement would result in a significant adverse effect on the employer's business operations and whether the proposed changes were reasonably required to meet the needs of the employees.

The Fair Work Commission, after thorough consideration of the arguments presented by both parties, determined that the proposed agreement did not adequately meet the statutory requirements. The Commission found that while the employees had made a genuine effort to negotiate, the proposed changes, particularly the wage increases and job security provisions, would place an undue financial strain on the employer. The Commission also noted that the agreement failed to sufficiently address the employer's concerns regarding operational efficiency and flexibility. Consequently, the Commission rejected the proposed agreement and directed the parties to continue negotiations with a view to reaching an agreement that met the legal requirements and balanced the interests of both parties.

DHL Supply Chain (Australia) 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