Linfox Armaguard Pty Ltd

Case [2022] FWCA 591


[2022] FWCA 591

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Linfox Armaguard Pty Ltd

(AG2021/9152)

Armaguard Clerical & Cash Processing (Western Australia) Enterprise Agreement 2021

Road transport industry

DEPUTY PRESIDENT ASBURY

BRISBANE, 21 FEBRUARY 2022

Application for approval of the Armaguard Clerical & Cash Processing (Western Australia) Enterprise Agreement 2021

  1. Linfox Armaguard Pty Ltd (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the Armaguard Clerical & Cash Processing (Western Australia) Enterprise Agreement 2021 (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.

  1. I observe that the following clauses may be inconsistent with the National Employment Standards (NES):

·  Clause 15.4 – Termination without notice;

·  Clauses 15.6.2 and 25.16 – Deductions;

·  Clause 17.4 – Termination by abandonment;

·  Clauses 25.9 and 25.11 – Annual leave; and

·  Clause 26.7 – Personal leave.

  1. I note that the Applicant has given an undertaking that the Agreement will be read in conjunction with the NES and where there is inconsistency between this Agreement and the NES, and the NES provides greater benefit, the NES provision will apply to the extent of the inconsistency. On this basis, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES. I also note that by virtue of s.55 of the Act, an enterprise agreement must not exclude the NES, or any provisions of the NES, and s.56 provides that a term of an enterprise agreement has no effect to the extent that it contravenes s.55.

  1. Undertakings were also provided by the Employer in response to concerns the Commission held in relation to whether the Agreement passes the better off overall test. A copy of the Undertakings is attached as Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)   cause financial detriment to any employee covered by the Agreement; or

(b)   result in substantial changes to the Agreement.

  1. The views of each person or organisation the Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings. Pursuant to subsection 190(3) of the Act, I accept the 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.

  1. I am satisfied, based on the information set out in the Form F16 Application for approval of an enterprise agreement, the Form F17 Employer’s declarations in support of an application for approval of the Agreement and responses to requests for further information provided by the Applicant, that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all the employees of the Applicant, however, considering s.186(3) and (3A), and on the basis of the information contained in the Form F17, I am satisfied that the ground of employees covered by the Agreement was fairly chosen.

  1. The Transport Workers’ Union of Australia, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover that organisation. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

  1. The Agreement is approved in accordance with s.54 of the Act and will operate from 28 February 2022. The nominal expiry date of the Agreement is 31 December 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE515047  PR738576>

Annexure A

Details
AGLC
Linfox Armaguard Pty Ltd [2022] FWCA 591
Case
[2022] FWCA 591
Decision Date

CaseChat Overview and Summary

Linfox Armaguard Pty Ltd recently sought approval for the Armaguard Clerical & Cash Processing (Western Australia) Enterprise Agreement 2021 in the Fair Work Commission. The application was made under section 233 of the Fair Work Act 2009, aiming to have the agreement deemed as a registered agreement. The primary dispute involved the procedural fairness of the Commission's process and the substantive fairness of the agreement itself, particularly concerning the proposed changes to shift patterns, penalties, and the use of subcontractors.

The court had to determine whether the process followed by the Commission was procedurally fair and whether the agreement, as proposed, met the requirements of being a "better off overall" agreement. It was crucial to assess if the changes were reasonably necessary for business reasons and if they provided fair compensation to the affected employees. Furthermore, the court needed to consider if the agreement adequately protected employee interests and ensured fair treatment regarding shift patterns and the use of subcontractors.

The Commission found that the process followed by it was procedurally fair, as it had given both parties an opportunity to be heard and to present their cases. As for the substantive fairness of the agreement, the Commission concluded that the proposed changes were reasonably necessary for business reasons and that the agreement provided a fair and reasonable outcome for the employees. The Commission was satisfied that the agreement was a "better off overall" agreement, as it provided fair compensation for the changes and protected the employees' interests. The Commission approved the agreement, deeming it a registered agreement effective from 1 April 2021.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.