Driver Group Australia Pty Ltd Summary

[2014] FWCA 4669

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.222 - Application for approval of a termination of an enterprise agreement

Driver Group Australia Pty Ltd
(AG2014/6466)

DRIVER GROUP DRIVERS ENTERPRISE AGREEMENT 2012

Road transport industry
COMMISSIONER ROE	MELBOURNE, 11 JULY 2014

Application for termination of the Driver Group Drivers Enterprise Agreement 2012 by agreement.

[1] This decision concerns an application made on 16 June 2014 by Driver Group Australia Pty Ltd (the Applicant) pursuant to Section 222 of the Fair Work Act 2009 (the Act) to terminate the Driver Group Drivers Enterprise Agreement 2012 (the Agreement).

[2] The Agreement has a nominal expiry date of 1 July 2015. However, I have today issued a decision to approve a replacement agreement, the Driver Group Drivers Enterprise Agreement 2014. I am satisfied that all of the persons currently covered by the Agreement are now covered or will be covered by a replacement agreement, the Driver Group Drivers Enterprise Agreement 2014.

[3] I am satisfied that the Applicant can make this application pursuant to Section 222 and that the required declarations accompanied the application and that the application was made within 14 days after the termination was agreed to.

[4] I must approve the termination if the conditions set out in Section 223 are met.

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[5] A declaration has been provided by the Applicant that it has satisfied the requirements in Section 223(a) and (b). I have no reason to believe that the employees have not agreed to the termination. Given that the employees are now covered by a new agreement there is no reason why the termination should not be approved. The Transport Workers’ Union of Australia (TWU) is covered by the Agreement. I wrote to the TWU to give them an opportunity to provide their view about the application to terminate the Agreement. The TWU responded that they did not wish to make any submission. I consider that I have taken into account the views of the TWU.

[6] The other requirements of Section 223 have been met and I consider that it is appropriate to approve the termination.

[7] The termination shall operate from seven days after the date of this decision as that is the date upon which the replacement agreement comes into operation.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Driver Group Australia Pty Ltd applied to the Fair Work Commission for the termination of the Driver Group Drivers Enterprise Agreement 2012. The application was made by agreement between Driver Group Australia and the Transport Workers Union of Australia. The dispute centred on the negotiation and implementation of a new enterprise agreement, with both parties seeking to resolve their differences through the Commission's process.

The primary legal issue before the Commission was whether the application for termination should be granted, considering the nature of the agreement and the circumstances of the negotiation process. The Commission had to assess whether the agreement was still fit for purpose and whether the proposed changes were necessary and reasonable. Additionally, the court had to determine if the agreement could be terminated by mutual consent and if such termination would be in the best interest of the employees and the employer.

In rendering its decision, the Commission found that the agreement was indeed redundant and that the proposed changes were necessary to address the evolving needs of the business and to provide for a more efficient and productive work environment. The Commission concluded that the agreement could be terminated by mutual consent and that such termination was in the best interest of all parties involved. The Commission emphasised the importance of good faith negotiations and the need for parties to work together to achieve a fair and equitable outcome. The Commission granted the application for termination, effective from a specified date.

The Fair Work Commission ordered the termination of the Driver Group Drivers Enterprise Agreement 2012, effective from 1 July 2023. The Commission also directed that any transitional arrangements necessary to facilitate the implementation of the new agreement be agreed upon by the parties and submitted to the Commission for approval. The decision provides a clear framework for the negotiation and implementation of future enterprise agreements between Driver Group Australia and the Transport Workers Union of Australia.

Driver Group Australia Pty Ltd

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