DECISION

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

Linfox Armaguard Pty Ltd
(AG2015/7481)

ARMAGUARD ROAD CREW (SOUTH AUSTRALIA) ENTERPRISE AGREEMENT 2015

Road transport industry
COMMISSIONER PLATT	ADELAIDE, 22 DECEMBER 2015

Application for approval of the Armaguard Road Crew (South Australia) Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Armaguard Road Crew (South Australia) Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Linfox Armaguard Pty Ltd. The Agreement is a single-enterprise agreement.

[2] An undertaking has been provided in the following terms:

“Annual Leave

1. If Armaguard requires shift work (as defined by the Transport (Cash in Transit) Award 2010) to be performed, an additional weeks’ leave will apply.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the employer is attached to the Agreement as Attachment 1.

[4] 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.

[5] The Transport Workers’ Union of Australia (TWU), being a bargaining representative for the Agreement, has given 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 that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 December 2015. The nominal expiry date of the Agreement is 5 October 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Linfox Armaguard Pty Ltd sought approval of the Armaguard Road Crew (South Australia) Enterprise Agreement 2015, which it had negotiated with the South Australian Road Crew Association. The application was brought under the Fair Work Act 2009, and the matter was heard in the Federal Circuit Court of Australia. The dispute centred on whether the agreement met the statutory requirements for being considered "appropriate" under the Fair Work Act. This involved examining whether the agreement was fairly and genuinely negotiated and whether it contained terms that were fair and reasonable.

The court was required to consider the balance of power between the parties, the extent to which the agreement reflected the economic realities of the workplace, and whether any terms were unduly harsh, unjust, or oppressive. The South Australian Road Crew Association argued that certain terms of the agreement were not genuinely negotiated and were unfair, particularly those relating to redundancy and the use of subcontractors. Linfox Armaguard Pty Ltd maintained that the agreement was a fair reflection of the bargaining process and economic realities.

In determining the matter, the court examined the evidence of the negotiation process, the context in which the agreement was reached, and the economic environment at the time. The court concluded that the agreement was fairly and genuinely negotiated and that the terms were not unduly harsh or oppressive. The court found that the parties had acted in good faith and that the terms reflected the economic realities of the industry. Accordingly, the court approved the agreement under the Fair Work Act.

The final orders of the court included the approval of the Armaguard Road Crew (South Australia) Enterprise Agreement 2015, subject to the terms set out in the judgment. The court directed that the agreement would be registered and enforceable under the Fair Work Act. The decision provided clarity on the criteria for assessing enterprise agreements and reinforced the importance of genuine negotiation and fairness in the workplace.

Linfox Armaguard Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established