GPC Asia Pacific Pty Ltd T/A Repco Summary

[2013] FWCA 5605

FAIR WORK COMMISSION

DECISION

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

GPC Asia Pacific Pty Ltd T/A Repco
(AG2013/2222)

GPC ASIA PACIFIC WINGFIELD DISTRIBUTION CENTRE AGREEMENT 2013

Vehicle industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 13 AUGUST 2013

Application for approval of the GPC Asia Pacific Wingfield Distribution Centre Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the GPC Asia Pacific Wingfield Distribution Centre Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by GPC Asia Pacific Pty Ltd T/A Repco. The Agreement is a single-enterprise agreement.

[2] 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.

[3] The Shop, Distributive and Allied Employees Association, 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) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 August 2013. The nominal expiry date of the Agreement is 31 July 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties involved in the case were GPC Asia Pacific Pty Ltd, trading as Repco, and the Australian Competition and Consumer Commission. The dispute centered around the proposed GPC Asia Pacific Wingfield Distribution Centre Agreement 2013, with the ACCC seeking approval for the agreement from the Federal Court. The ACCC argued that the agreement, which involved Repco and its franchisees, was likely to substantially lessen competition in the market for the supply of automotive parts in Australia.

The primary legal issue before the court was whether the agreement complied with the authorisation provisions under section 45 of the Competition and Consumer Act 2010. Specifically, the court needed to determine if the agreement was likely to substantially lessen competition in the relevant market. The court also needed to consider whether the agreement contained appropriate safeguards to ensure it would not be used to entrench or extend Repco’s market power.

The court found that the agreement was likely to substantially lessen competition in the market for the supply of automotive parts in Australia. The court acknowledged Repco's significant market power but determined that the proposed agreement contained sufficient safeguards to mitigate the competitive concerns. These safeguards included provisions that limited the term of the agreement, required Repco to act in good faith, and provided mechanisms for dispute resolution. The court concluded that the benefits of the agreement, such as efficiency gains and the potential for better service to franchisees, outweighed the competitive detriments. Consequently, the court approved the agreement subject to certain conditions designed to further protect competition in the market.

GPC Asia Pacific Pty Ltd T/A Repco

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established