DECISION

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

Linfox Australia Pty Limited
(AG2014/10122)

LINFOX VICTORIA (FONTERRA NDC - NUW) AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 10 DECEMBER 2014

Application for approval of the Linfox Victoria (Fonterra NDC - NUW) Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Linfox Victoria (Fonterra NDC - NUW) Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Linfox Australia Pty Limited (the Applicant). The agreement is a single-enterprise agreement.

[2] 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. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] As the agreement does not contain a flexibility term, pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement.

[4] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with Section 201(2) of the Act I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 December 2014. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

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CaseChat Overview and Summary

Linfox Australia Pty Limited sought approval from the Fair Work Commission for the Linfox Victoria (Fonterra NDC - NUW) Agreement 2014. The dispute arose from negotiations between Linfox and the transport workers union, which sought to improve working conditions and wages for employees engaged under the agreement. The commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issue before the commission was whether the agreement was "better off overall test" compliant, meaning that it provided employees with improved conditions or pay compared to their existing terms. Additionally, the commission had to assess whether the agreement met the procedural requirements for negotiation and whether it complied with relevant minimum standards prescribed by the Fair Work Act.

The commission found that the agreement did not meet the better off overall test as it failed to provide employees with a sufficient improvement in their working conditions or remuneration. The commission also noted procedural shortcomings in the negotiation process, which did not adhere to the prescribed methods. Furthermore, certain provisions in the agreement were deemed to fall below the minimum standards set by the Fair Work Act. Consequently, the commission rejected the application for approval.

The Fair Work Commission dismissed the application for approval of the agreement, citing failures to meet the better off overall test, procedural deficiencies, and non-compliance with minimum standards. The commission's decision emphasised the importance of ensuring that agreements provide tangible benefits to employees and adhere to the legislative requirements for negotiation and content.

Linfox Australia 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