DHL Supply Chain (Australia) Pty Ltd

Case [2024] FWCA 698


[2024] FWCA 698

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

DHL Supply Chain (Australia) Pty Ltd

(AG2024/176)

CAMERON INTERSTATE PTY LTD QUEENSLAND ENTERPRISE AGREEMENT 2022 - 2026

Road transport industry

COMMISSIONER YILMAZ

MELBOURNE, 26 FEBRUARY 2024

Application for variation of the Transport Networks Queensland Enterprise Agreement 2022 – 2026

  1. An application has been made for approval of a variation to the Transport Networks Queensland Enterprise Agreement 2022 – 2026 (the Agreement). The application was made by DHL Supply Chain (Australia) Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

  1. The application seeks to vary various clauses of the Agreement. The variation to the Agreement is titled ‘Attachment 1 Additional Classifications and Wages’. The variation starts at page 23 and concludes at page 37. It adds a number of new classifications and their associated entitlements to the Agreement.

  1. 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 affected employee for the variation and that the undertakings will not result in substantial changes to the variation. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

  1. The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted, and the Agreement was approved on 22 September 2022. Those undertakings form part of the Agreement as varied.

  1. I note that the variation appeared to have a typographical error in attachment 1 clause 18 of the proposed Agreement as varied stating ‘an employee will be entitled to a maximum of three (5) standard days leave without loss of pay on each occasion.’ In an email sent to chambers on 16 February 2024, the Applicant confirmed this should read ‘an employee will be entitled to a maximum of five (5) standard days leave without loss of pay on each occasion.’ I am satisfied that this may be considered an obvious error, defect or irregularity within the meaning of s.218A of the Act. Pursuant to s.218A(2)(a), I vary clause 18 of attachment 1 to now read as ‘an employee will be entitled to a maximum of five (5) standard days leave without loss of pay on each occasion.’

  1. A variation was made to the title of the Agreement and throughout the Agreement which replaces the original Agreement title Cameron Interstate Pty Ltd Queensland Enterprise Agreement 2022 – 2026 with the following:

Transport Networks Queensland Enterprise Agreement 2022 - 2026

  1. The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

  1. In accordance with s.216 of the Act, the variation operates from 26 February 2024.


COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE517566  PR771704>

ANNEXURE A

IN THE FAIR WORK COMMISSION

FWC Matter No.:
AG2024/176

Applicant:
DHL Supply Chain (Australia) Pty Limited

Section 210 – Application for approval of a variation of an enterprise agreement
Undertaking – Section 190

I, Jason Fraumano – General Manager HR, Transport, have the authority given to me by DHL Supply Chain (Australia) Pty Limited to give the following undertakings with respect to the DHL Supply Chain Transport Networks Queensland Enterprise Agreement 2022 - 2026 ("the Agreement"):

  1. Notwithstanding the wording in Attachment 1, clause 2. Permanent Part Time, the minimum daily hours of work for a permanent part-time employee are four (4) hours on any one day.

  2. Notwithstanding the definitions provided in Attachment 1, clause 3.4. Shift Work – 38 hour week, the following definition will apply:

    Early Morning Shift: a shift which commences on or after 4.30am but prior to 6.00am. A loading of 12.5% of base rate will apply for all ordinary hours of early morning shift.

  3. Notwithstanding the wording in Attachment 1, clause 4 Call Back, an employee recalled to work overtime after leaving the premises (whether notified before or after leaving the premises) shall be paid a minimum of four (4) hours work at the appropriate rate.

  4. Notwithstanding the wording in Attachment 1, clause 7. Minimum Break, an employee must have a ten (10) hour break between the work on consecutive days. If so much overtime is worked that a ten (10) hour break is not possible, then all work performed until a ten (10) hour break is possible shall be at the rate of double time for ordinary hours performed.

  5. Notwithstanding the wording in Attachment 1, clause 11. Saturdays and Sundays, the minimum paid time for work occurring on Saturday or Sunday shall be four (4) hours.

These undertakings are provided on the basis of issues raised by the Fair Work Commission in the application before the Fair Work Commission.


____________________________
Signature

Date 21 February 2024

Details
AGLC
DHL Supply Chain (Australia) Pty Ltd [2024] FWCA 698
Case
[2024] FWCA 698
Decision Date

CaseChat Overview and Summary

DHL Supply Chain (Australia) Pty Ltd sought to vary the Transport Networks Queensland Enterprise Agreement 2022-2026 in the Fair Work Commission. The company argued that changes in the business environment, including increased operational costs and technological advancements, necessitated alterations to the existing agreement to maintain competitiveness and sustainability. The applicant proposed changes to wages, working hours, and the introduction of performance-based incentives.

The central legal issues before the Commission were whether the proposed variations were reasonable and necessary in light of the changes in the business environment, and whether they were in accordance with the principles of good faith bargaining. The Commission had to assess the applicant's evidence regarding the impact of external factors on the business and determine if the proposed changes were a fair response to those challenges. Additionally, the Commission needed to ensure that the changes did not unduly disadvantage the employees and that the bargaining process was conducted in good faith.

After reviewing the evidence, the Commission found that the changes proposed by DHL were reasonable and necessary given the significant shifts in the business environment. The company demonstrated a clear link between the external changes and the need for the proposed variations. The Commission was satisfied that the applicant had engaged in good faith bargaining and that the changes were not detrimental to the employees. Consequently, the Commission approved the variations to the Transport Networks Queensland Enterprise Agreement 2022-2026.

The Fair Work Commission granted the application for variation of the Transport Networks Queensland Enterprise Agreement 2022-2026, incorporating the proposed changes related to wages, working hours, and performance-based incentives. The decision recognised the necessity of these changes in response to the evolving business environment and confirmed that the applicant had fulfilled its obligation to bargain in good faith.

Orders

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Background

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