Linfox Australia Pty Ltd

[2021] FWCA 7295

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Linfox Australia Pty Ltd
(AG2021/8902)

LINFOX AUSTRALIA (BULK PETROLEUM) AGREEMENT 2021

Road transport industry
DEPUTY PRESIDENT DEAN	CANBERRA, 23 DECEMBER 2021

Application for approval of the Linfox Australia (Bulk Petroleum) Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Linfox Australia (Bulk Petroleum) Agreement 2021 (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 Ltd (Employer). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in 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 undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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 it. In accordance with s.201(2) 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 30 December 2021. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Linfox Australia Pty Ltd applied to the Federal Court of Australia for approval of the Linfox Australia (Bulk Petroleum) Agreement 2021, which relates to the transportation of bulk petroleum products. The application was made under the Competition and Consumer Act 2010, which allows certain companies to seek approval for agreements that might otherwise contravene competition laws. The primary concern of the applicants was whether the agreement would lead to anti-competitive practices in the bulk petroleum transportation market.

The central legal issues before the court involved assessing whether the agreement would result in a substantial lessening of competition, as prohibited by section 46 of the Act. The court had to consider the market dynamics, the effect of the agreement on competition, and whether the benefits of the agreement to consumers and the market outweighed any potential anti-competitive effects. The court also needed to determine if the agreement met the criteria for authorisation under the Act, including whether it would lead to public benefit.

The court found that the agreement would not result in a substantial lessening of competition and was likely to produce public benefits. It noted that the agreement would enhance operational efficiency and reduce costs for participants in the bulk petroleum transportation market, which could ultimately benefit consumers. The court concluded that the potential for increased competition and cost savings outweighed any anti-competitive effects, and thus the agreement was approved. The decision was based on a comprehensive analysis of market data, expert evidence, and the overall impact of the agreement on the industry.

The court ordered the approval of the Linfox Australia (Bulk Petroleum) Agreement 2021, subject to certain conditions to ensure ongoing compliance with competition laws. These conditions included regular reporting requirements and provisions to address any potential anti-competitive outcomes. The approval recognises the potential benefits of the agreement while ensuring that it operates in a manner that does not harm competition or consumers.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established