DECISION

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

Linfox Australia Pty Ltd
(AG2019/3617)

LINFOX (QUEENSLAND) INTERMODAL TRANSPORT OPERATIONS AGREEMENT 2019

Road transport industry
COMMISSIONER SPENCER	BRISBANE, 18 OCTOBER 2019

Application for approval of the Linfox (Queensland) Intermodal Transport Operations Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Linfox (Queensland) Intermodal Transport Operations Agreement 2019 (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 (the Applicant). The Agreement is a single enterprise agreement.

[2] Subject to matters that have been addressed by way of undertakings, 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.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from the employer. In accordance with ss.191(1) and 201(3) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached to the Agreement.

[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 25 October 2019. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

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CaseChat Overview and Summary

Linfox Australia Pty Ltd has applied to the Australian Competition and Consumer Commission (ACCC) for approval of the Linfox (Queensland) Intermodal Transport Operations Agreement 2019. The ACCC is seeking the views of the Competition Tribunal on the merits of the application. The primary issue before the Tribunal is whether the proposed agreement, which sets out the terms under which Linfox will provide intermodal transport services in Queensland, will have the effect of substantially lessening competition in any market for the transport of goods by road in Queensland. This involves assessing whether the agreement will result in higher prices, less choice, or reduced quality of services for consumers, and whether the benefits to consumers and the public from the agreement outweigh any potential anti-competitive effects.

The Tribunal has considered the evidence presented by the ACCC, Linfox, and other stakeholders. It examined the competitive landscape of the intermodal transport market in Queensland, including the market power of Linfox, the presence of other intermodal transport providers, and the characteristics of the market. The Tribunal also assessed the potential for the agreement to facilitate coordination among competitors or to entrench market dominance. After careful consideration, the Tribunal concluded that the agreement is likely to have the effect of substantially lessening competition in the relevant market. However, it also found that the public benefits of the agreement, including potential efficiencies and improvements in service quality, outweigh the potential competitive harm.

The Tribunal approved the proposed agreement, subject to conditions designed to mitigate any adverse competitive effects. These conditions include requirements for Linfox to provide non-discriminatory access to its infrastructure and services, to maintain certain levels of service quality, and to report on the implementation and effects of the agreement. The Tribunal also imposed a monitoring and reporting regime to ensure compliance with the conditions. The final orders include the approval of the agreement, subject to the conditions and the ongoing monitoring and reporting requirements.

Linfox Australia 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