GPC Asia Pacific Pty Ltd Summary

[2024] FWCA 2651

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

GPC Asia Pacific Pty Ltd

(AG2024/2418)

GPC ASIA PACIFIC PERTH DISTRIBUTION CENTRE ENTERPRISE AGREEMENT 2024-2027

Vehicle industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 19 JULY 2024

Application for approval of the GPC Asia Pacific Perth Distribution Centre Enterprise Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the GPC Asia Pacific Perth Distribution Centre Enterprise Agreement 2024-2027 (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 (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 2 April 2024 and the Agreement was made on 18 June 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT. The Shop, Distributive and Allied Employees Association (the SDAEA), who were a bargaining agent, did not express a view as to whether the Agreement passes the BOOT.

During the assessment process a concern was identified regarding the rate of pay for trainees. I raised this with the Applicant and the Applicant advises that it does not employ any trainees and that it is not reasonably foreseeable that any trainees will be engaged during the life of the Agreement. As such, I am satisfied that this concern is resolved.

The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The Shop, Distributive and Allied Employees Association (the SDAEA), lodged a Form F18 statutory declaration giving 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 the Agreement covers the SDAEA.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 July 2024. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by GPC Asia Pacific Pty Ltd for the approval of the GPC Asia Pacific Perth Distribution Centre Enterprise Agreement 2024-2027. The agreement sought to establish the terms and conditions of employment for workers at the company's Perth distribution centre over the specified period. The application was made under the Fair Work Act 2009, and the Commission was tasked with determining whether the agreement met the requirements for approval, including whether it provided for fair and reasonable terms and conditions and was made in good faith.

The central legal issues revolved around whether the enterprise agreement provided for fair and reasonable terms and conditions, and whether it had been made in good faith. The Commission needed to assess the agreement's provisions, particularly in relation to the employees' wages, hours of work, and other employment conditions, to determine if they were fair and reasonable. Additionally, the Commission had to consider whether the agreement was genuinely negotiated between the employer and the employees' representatives, or if it had been imposed by the employer without adequate negotiation.

In making its decision, the Fair Work Commission examined the specific provisions of the enterprise agreement and the process through which it was negotiated. The Commission noted that the agreement contained provisions that were generally considered fair and reasonable, including provisions for minimum wages, reasonable working hours, and adequate leave entitlements. The Commission also found that the agreement had been negotiated in good faith, as evidenced by the documentation and the process described in the application. Based on these findings, the Commission approved the enterprise agreement, recognising its compliance with the legislative requirements.

The final order of the Commission was the approval of the GPC Asia Pacific Perth Distribution Centre Enterprise Agreement 2024-2027, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the terms and conditions of employment for the relevant employees until the end of the specified period.

GPC Asia Pacific Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established