DECISION

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

Grace Worldwide (Australia) Pty Ltd T/A Grace Removals
(AG2019/3300)

GRACE REMOVALS GROUP NORTHERN REGION ENTERPRISE AGREEMENT 2019 - 2022

Road transport industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 31 JANUARY 2020

Application for approval of the Grace Removals Group Northern Region Enterprise Agreement 2019 - 2022.

[1] Grace Worldwide (Australia) Pty Ltd T/A Grace Removals (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the Grace Removals Group Northern Region Enterprise Agreement 2019 - 2022 (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] Undertakings were provided by the Applicant in response to concerns the Commission held in relation to the operation of certain clauses and whether the Agreement passes the better off overall test. Pursuant to s.190 of the Act, I accept the Applicant’s undertakings. In accordance with s.201(3) of the Act, a copy of the undertakings will be attached to the Agreement and forms part of the Agreement.

[3] The Transport Workers’ Union of Australia and the Australian Workers’ Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[4] I am satisfied that each of the requirements of ss.l86, 187 and 188 as are relevant to this application for approval have been met.

[5] The Agreement is approved in accordance with s.54 of the Act and will operate from 7 February 2020. The nominal expiry date of the Agreement is 26 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission was brought by Grace Worldwide (Australia) Pty Ltd trading as Grace Removals, seeking approval of the Grace Removals Group Northern Region Enterprise Agreement 2019-2022. The dispute centred on the procedural fairness of the enterprise agreement, specifically whether the employer had genuinely consulted with its employees before finalising the agreement and whether the agreement adequately represented the workforce.

The legal issues the court had to address included whether Grace Worldwide had properly engaged in the mandatory consultation process as required by the Fair Work Act 2009, and whether the agreement met the standards for procedural fairness and substantive fairness. The court also needed to determine if the agreement had been made in good faith and whether it provided fair and reasonable terms for the employees.

The court found that Grace Worldwide had not adequately consulted with its employees, as there was insufficient evidence of meaningful engagement and the consultation process was not conducted in a timely manner. The agreement was deemed to lack procedural fairness as it did not reflect the employees' views and concerns adequately. The court concluded that the enterprise agreement did not meet the standards of good faith and did not provide fair and reasonable terms for the employees. Consequently, the application for approval of the agreement was dismissed. The court's decision emphasised the importance of genuine consultation and the need for enterprise agreements to reflect the workforce's interests fairly.

Grace Worldwide (Australia) Pty Ltd T/A Grace Removals

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established