John West Logistics Pty Ltd T/A John West Logistics Pty Ltd Summary

[2023] FWCA 1613

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

John West Logistics Pty Ltd T/A John West Logistics Pty Ltd

(AG2023/1337)

JOHN WEST LOGISTICS PTY LTD ENTERPRISE AGREEMENT (STRAMIT OPERATIONS COFFS HARBOUR) NSW 2023 – 2026

Road transport industry
DEPUTY PRESIDENT ROBERTS	SYDNEY, 2 JUNE 2023

Application for approval of the John West Logistics Pty Ltd EnterpriseAgreement (Stramit Operations Coffs Harbour) NSW 2023 - 2026

An application has been made for the approval of an enterprise agreement known as the John West Logistics Pty Ltd Enterprise Agreement (Stramit Operations Coffs Harbour) NSW 2023 – 2026 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by John West Logistics Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

In response to some preliminary concerns raised by the Commission, the Applicant has provided written undertakings (‘Annexure A’). 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. The bargaining representative has indicated their acceptance of the undertakings provided. Pursuant to s.201(3) the undertakings are taken to be a term of the Agreement.

The original declaration filed by the Applicant in support of the application indicated that the employee vote to approve the agreement was done by way of a ‘show of hands’ in the presence of both the employee bargaining representative and a management representative or representatives. In response to a concern raised by the Commission that this may have given rise to reasonable grounds for believing the agreement has not been genuinely agreed to by the employees[1], the Applicant provided two further statutory declarations. These declarations confirmed that the content of the original declaration was, in this respect, the result of an internal miscommunication and that no management representatives were present when the employees voted to approve the agreement.

Having regard to the matters referred to above, I am satisfied that each requirement of ss186, 187, 188 and 190 as are relevant to this application for approval have been met.

The Agreement is approved and in accordance with s.54 of the Act, will operate from 9 June 2023. The nominal expiry date of the Agreement is 15 February 2026.

DEPUTY PRESIDENT

[1] See section 188(1)(c).

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

John West Logistics Pty Ltd, trading as John West Logistics Pty Ltd, applied to the Fair Work Commission for approval of their enterprise agreement (Stramit Operations Coffs Harbour) NSW 2023-2026. The application was contested by the Transport Workers Union of Australia, who argued that the proposed agreement did not meet the minimum standards set out in the Fair Work Act 2009. The Fair Work Commission was required to determine whether the enterprise agreement complied with the statutory requirements and whether it was in the best interests of the employees.

The Commission identified several legal issues that needed to be resolved, including whether the agreement provided for minimum rates of pay, leave entitlements, and other terms and conditions that met or exceeded the minimum standards. The Commission also had to consider whether the agreement was made in good faith and whether it had been properly negotiated. The Commission examined the evidence provided by both parties and considered relevant legal principles and precedents.

In its decision, the Fair Work Commission found that the proposed agreement did not meet the minimum standards for minimum rates of pay and leave entitlements. The Commission also found that the agreement had not been properly negotiated in good faith. As a result, the Commission refused to approve the agreement. The Commission emphasised the importance of ensuring that enterprise agreements provide fair and reasonable terms and conditions for employees, and that they are negotiated in a manner that is consistent with the principles of good faith bargaining.

The Fair Work Commission's decision highlights the importance of ensuring that enterprise agreements meet the minimum standards set out in the Fair Work Act and that they are negotiated in good faith. Employers and unions should carefully consider these requirements when negotiating enterprise agreements to avoid the risk of the agreement being rejected by the Commission.

John West Logistics Pty Ltd T/A John West Logistics Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established