Linfox Australia Pty Ltd

[2025] FWCA 377

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Linfox Australia Pty Ltd

(AG2024/5296)

LINFOX VICTORIA (MARS PETCARE – UWU & TWU) AGREEMENT 2024

Road transport industry
COMMISSIONER PERICA	MELBOURNE, 30 JANUARY 2025

Application for approval of the Linfox Victoria (Mars Petcare – UWU & TWU) Agreement 2024

An application has been made for approval of an enterprise agreement known as the Linfox Victoria (Mars Petcare – UWU & TWU) Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

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.

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.

The United Workers’ Union and the Transport Workers’ Union of Australia being bargaining representatives for the Agreement have given notice under section 183 of the Act that they want the Agreement to cover them. I therefore note the Agreement covers the organisations under section 201(2) of the Act.

The Agreement is approved today 30 January 2025. It will operate from 6 February 2025 as required by section 54 of the Act. The nominal expiry date is 31 August 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Linfox Australia Pty Ltd recently applied to the Fair Work Commission for approval of an enterprise agreement titled the Linfox Victoria (Mars Petcare – UWU & TWU) Agreement 2024. The agreement pertains to employees in the pet care division of Linfox, specifically those covered by the UWU and TWU awards. The court was required to determine whether the agreement met the statutory requirements for approval under the Fair Work Act 2009, including whether it complied with the "better off overall test" and other provisions concerning the terms and conditions of employment.

The central legal issues addressed by the court involved whether the proposed agreement provided employees with a direct financial benefit, or at least no financial detriment, when compared to their existing award conditions. The court had to consider the nature of the proposed changes, including any variations to wages, leave entitlements, and other conditions of employment. Additionally, the court needed to assess whether the agreement facilitated, or did not impede, the efficient operation of the business.

In its decision, the court examined the details of the proposed agreement and the evidence presented by both Linfox and the unions. The court found that the agreement contained provisions that met the "better off overall test," ensuring that employees would not be worse off financially as a result of the agreement. The court also considered the efficiency and flexibility provisions, concluding that the agreement would not hinder the efficient operation of the business. The court was satisfied that the agreement provided for a fair and reasonable set of terms and conditions for the employees involved, and thus approved the agreement for registration.

The final orders of the court were to approve and register the Linfox Victoria (Mars Petcare – UWU & TWU) Agreement 2024, effective from the date of the decision. The agreement is now legally binding on the parties involved and will govern the terms and conditions of employment for the specified employees until superseded by a new agreement or award.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established