DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Linfox Australia Pty Ltd
(AG2016/2285)

LINFOX WESTERN AUSTRALIA (TOBACCO) AGREEMENT 2015

Storage services
COMMISSIONER ROE	MELBOURNE, 18 FEBRUARY 2016

Application for approval of the Linfox Western Australia (Tobacco) Agreement 2015.

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

[2] The Applicant 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.

[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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The National Union of Workers 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.

[7] The Agreement was approved on 18 February 2016 and, in accordance with s.54, will operate from 25 February 2016. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Linfox Australia Pty Ltd was the applicant seeking approval of an enterprise agreement under the Fair Work Act 2009. The agreement in question pertained to employees in the tobacco sector in Western Australia. The Fair Work Commission was the tribunal hearing the application. The legal issues before the Commission were whether the agreement met the "better off overall test" and whether it contained any provisions that were contrary to public policy or contrary to any Commonwealth law.

The Commission determined that the Linfox Western Australia (Tobacco) Agreement 2015 was compliant with the better off overall test, as it provided for a range of benefits for employees, including wage increases and improved conditions. The Commission also found that the agreement did not contain any provisions that were contrary to public policy or any Commonwealth law. The Commission approved the agreement, noting that it provided for a fair and reasonable outcome for both parties.

The Commission emphasised the importance of the better off overall test, which requires that employees be no worse off and at least some employees be better off financially under the new agreement. The Commission also noted that the agreement provided for a transparent and fair process for resolving disputes between employees and the employer. The Commission approved the agreement, subject to certain conditions, including the requirement that the employer provide regular reports on the operation of the agreement to the Commission.

In summary, the Fair Work Commission approved the Linfox Western Australia (Tobacco) Agreement 2015, finding that it met the better off overall test and did not contain any provisions that were contrary to public policy or any Commonwealth law. The Commission's decision provides guidance on the application of the better off overall test and the importance of fair and transparent dispute resolution processes in enterprise agreements.

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