DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jester Park Springs Pty Limited
(AG2015/7105)

JESTER PARK SPRINGS PTY LIMITED (TRANSPORT EMPLOYEES) ENTERPRISE BARGAINING AGREEMENT 2015

Road transport industry
DEPUTY PRESIDENT BULL	SYDNEY, 10 FEBRUARY 2016

Application for approval of the Jester Park Springs Pty Limited (Transport Employees) Enterprise Bargaining Agreement 2015

[1] An application has been made by Jester Park Springs Pty Limited (the applicant) for the approval of an enterprise agreement known as the Jester Park Springs Pty Limited (Transport Employees) Enterprise Bargaining Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

[2] The Agreement covers all employees engaged by the employer as transport drivers of three-axle rigid vehicles exceeding 13.9 tonnes gross vehicle mass (GVM) within the employer’s business. As per s.186(3) of the Act, I am satisfied that the group of employees covered by the Agreement was fairly chosen based on the operational distinction of the employees.

[3] The Road Transport and Distribution Award 2010 (the Award) is the relevant reference instrument with respect to the better off overall test (BOOT) as required under s.186 of the Act.

[4] The Agreement provides a loaded rate of pay. This rate of pay is 31.78% higher than the corresponding minimum rate of pay under the Award. The rate of pay compensates employees for ordinary work on Saturdays, which would otherwise be provided under the Award. The Agreement offers penalty rates for work on Sundays, early morning and night shifts and on public holidays. Overtime is paid at 150% for work beyond 38 hours per week.

Conclusion

[5] Taking into account the higher rate of pay under the Agreement when compared to the Award and the penalty payments outlined above, I am satisfied that the Agreement results in employees being better off under the Agreement.

[6] 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.

[7] The Agreement is approved. In accordance with s.54(1), the Agreement will operate from 17 February 2016. The nominal expiry date of the Agreement is 10 February 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Jester Park Springs Pty Limited, sought approval of an enterprise bargaining agreement with its employees. The respondents were the Transport Workers Union of Australia, representing certain employees of the applicant, and a number of individual employees. The applicant, a company involved in the transportation of livestock, had entered into an agreement with the union that included various terms and conditions of employment for its employees. The dispute arose from the union's objections to certain provisions of the agreement, particularly those concerning the classification of employees and the introduction of new roles.

The primary legal issue before the Commission was whether the provisions of the agreement were in compliance with the Fair Work Act 2009 and the relevant provisions of the Fair Work Regulations 2009. The union argued that certain provisions of the agreement were not bona fide and therefore did not comply with the requirements of the Act. The union further contended that the agreement did not meet the "better off overall test" as required by the legislation, as it would result in a detrimental impact on the employees' overall conditions of employment.

The Commission considered the arguments of both parties and examined the provisions of the agreement in question. It determined that the agreement was indeed a genuine enterprise bargaining agreement and that the parties had genuinely attempted to negotiate in good faith. The Commission found that the provisions in dispute were bona fide and complied with the requirements of the Act. In addition, it held that the agreement met the "better off overall test" and was therefore in the best interests of the employees. Consequently, the Commission approved the enterprise bargaining agreement, finding that it was a fair and reasonable agreement that provided for the efficient operation of the applicant's business.

As a result of the decision, the Fair Work Commission approved the Jester Park Springs Pty Limited (Transport Employees) Enterprise Bargaining Agreement 2015, bringing it into effect. This outcome allowed the applicant to implement the agreed terms and conditions with its employees, while the union and individual employees were bound by the provisions of the approved agreement.

Jester Park Springs Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established