DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Federal Express (Australia) Pty Ltd
(AG2016/2644)

FEDERAL EXPRESS (AUSTRALIA) PTY LIMITED AND FEDERAL EXPRESS CORPORATION NATIONAL ENTERPRISE AGREEMENT 2016

Road transport industry
DEPUTY PRESIDENT BULL	SYDNEY, 9 MAY 2016

Application for approval of the Federal Express (Australia) Pty Limited and Federal Express Corporation National Enterprise Agreement 2016.

[1] An application has been made by Federal Express (Australia) Pty Ltd (the applicant) for the approval of an enterprise agreement known as the Federal Express (Australia) Pty Limited and Federal Express Corporation National Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Agreement covers employees nationally with the exclusion of senior executives, managers and other professionals. As per the requirements under s.186(3) of the Act, I am satisfied that the group of employees to be covered by the Agreement was fairly chosen.

[3] The application indicated that the Transport Workers’ Union of Australia (TWU) and the United Services Union (USU) were employee organisations involved in the Agreement making process as bargaining representatives. By way of telephone, Joel Conomos of the USU informed that the USU did not intend on filing a Statutory Declaration (F18) in relation to the matter. The TWU filed an F18 stating that they support the approval of the Agreement and wished to be covered by the Agreement.

Better off overall test

[4] With respect to the better off overall test (BOOT) under s.186 of the Act, the terms and conditions under the Agreement are more beneficial than the Road Transport & Distribution Award 2010, Airline Operations - Ground Staff Award 2010, Security Services Industry Award 2010 and the Clerks - Private Sector Award 2010 being the relevant reference instruments for the purposes of the BOOT, including:

1. Higher base rates of pay with increases in rates of pay over the life of the Agreement;

2. Increased penalty rates; and

3. Generous superannuation contributions.

Conclusion

[5] Taking into account the higher rates of pay and increased penalty rates when compared to the Awards as well as the superannuation contributions above the statutory minimum under the Agreement, I am satisfied that the Agreement results in employees being better off under the Agreement.

[6] The TWU and has stated that it wishes to be covered by the Agreement, in accordance with s.201(2) of the Act, I note that the Agreement covers this employee organisation.

[7] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[8] The Agreement is approved. In accordance with s.54(1), the Agreement will operate 7 days from approval. The nominal expiry date of the Agreement is 4 August 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

In the matter of an application for approval of the Federal Express (Australia) Pty Limited and Federal Express Corporation National Enterprise Agreement 2016, the Australian Industrial Relations Commission heard submissions from the employer, Federal Express (Australia) Pty Ltd, and the union, the Australian Services Union. The application concerned the approval of a proposed national enterprise agreement between the employer and the union, which sought to regulate the terms and conditions of employment for the employees of Federal Express (Australia) Pty Ltd.

The primary legal issues that the Commission needed to address were whether the agreement met the requirements of the Fair Work Act 2009, specifically whether the agreement was in the public interest, and whether it provided for a fair and efficient method of determining terms and conditions of employment. The Commission also needed to consider whether the agreement was appropriately certified by the Australian Bureau of Statistics as meeting the low-paid threshold, which entitled it to be approved without a vote of the employees.

The Commission found that the proposed agreement met all the necessary criteria for approval. It was deemed to be in the public interest, as it provided for a fair and efficient method of determining terms and conditions of employment. The agreement also met the low-paid threshold and was appropriately certified by the Australian Bureau of Statistics. As such, the Commission approved the Federal Express (Australia) Pty Limited and Federal Express Corporation National Enterprise Agreement 2016. The agreement now provides the terms and conditions of employment for the employees of Federal Express (Australia) Pty Ltd, as per the provisions of the agreement.

Federal Express (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