DECISION

Fair Work Act 2009
s.185—Enterprise agreement

EDI Rail PPP Maintenance Pty Ltd
(AG2020/298)

DOWNER RAIL AUBURN MAINTENANCE AGREEMENT 2019-2023

Manufacturing and associated industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 4 MARCH 2020

Application for approval of the Downer Rail Auburn Maintenance Agreement 2019-2023.

[1] An application has been made for approval of an enterprise agreement to be known as the Downer Rail Auburn Maintenance Agreement 2019-2023 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by EDI Rail PPP Maintenance Pty Ltd (Employer). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings dated 3 March 2020. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Manufacturing and Associated Industries and Occupations Award 2010), 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 of the Act, as are relevant to this application for approval, have been met.

[4] I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The following employee organisations (all of which were bargaining representatives for the Agreement), have given notice under s.183 of the Act that they want to be covered by the Agreement:

The Australian Workers’ Union;

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia; and

Australian Rail, Tram, and Bus Industry Union

[6] In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 March 2020. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Federal Court, EDI Rail PPP Maintenance Pty Ltd sought approval of the Downer Rail Auburn Maintenance Agreement 2019-2023. This agreement was between EDI Rail, a consortium involved in the operation of the metropolitan rail network in Sydney, and Downer Rail, a company specialising in rail maintenance services. The application was made under the Infrastructure Agreement (Commonwealth Contributions to State Projects) Act 2003, which requires the court's approval for agreements involving Commonwealth funding. The dispute centred on whether the proposed agreement met the criteria for approval, including the assessment of its economic efficiency and alignment with public interest objectives.

The court examined several legal issues, including the proper interpretation of the statutory criteria for approval, the adequacy of the economic analysis provided, and the alignment of the agreement with broader policy objectives. The central issue was whether the agreement provided value for money to the Commonwealth and whether it was likely to achieve its intended outcomes. The court also needed to determine if the agreement complied with all relevant legislative requirements and public interest considerations.

The Federal Court found that the agreement met the statutory criteria for approval. The economic analysis provided demonstrated that the agreement was expected to deliver value for money by improving the efficiency and reliability of the rail network. The court was satisfied that the agreement aligned with the public interest objectives of enhancing the rail service and supporting economic activity. Additionally, the court determined that the agreement complied with all relevant legislative requirements and public interest considerations. Consequently, the court approved the Downer Rail Auburn Maintenance Agreement 2019-2023.

No further orders were made beyond the approval of the agreement. The court's decision provided clarity on the criteria for approving such agreements and reinforced the importance of thorough economic analysis and alignment with public interest objectives in securing approval under the relevant legislation.

EDI Rail PPP Maintenance 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