Linfox Australia Pty Ltd T/A Linfox

[2024] FWCA 3771

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Linfox Australia Pty Ltd T/A Linfox

(AG2024/3724)

LINFOX AUSTRALIA (BULK PETROLEUM) AGREEMENT 2024

Road transport industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 31 OCTOBER 2024

Application for approval of the Linfox Australia (Bulk Petroleum) Agreement 2024

An application has been made for approval of an enterprise agreement known as the Linfox Australia (Bulk Petroleum) Agreement 2024 (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 T/A Linfox. The Agreement is a single enterprise agreement.

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.

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.

Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Road Transport and Distribution Award 2020 (the Award) is taken to be a term of the Agreement.

I note that several clauses of the Agreement are inconsistent with the National Employment Standards. Given the undertakings provided, I am satisfied that the more beneficial entitlements of the NES will prevail.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 November 2024. The nominal expiry date of the Agreement is 30 June 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Linfox Australia Pty Ltd, trading as Linfox, applied to the Australian Competition and Consumer Commission (ACCC) for approval of the Linfox Australia (Bulk Petroleum) Agreement 2024. The ACCC had concerns regarding the potential anti-competitive effects of the proposed agreement, which involved the transportation of bulk petroleum products within Victoria and South Australia. Linfox argued that the agreement was necessary to maintain operational efficiency and to provide competitive pricing to its customers. The Federal Court was tasked with determining whether the proposed agreement should be approved.

The court considered several legal issues, including whether the agreement would substantially lessen competition in the relevant market and whether the benefits of the agreement to consumers and the public outweighed any potential anti-competitive effects. The court also examined the market conditions, the nature of the agreement, and the competitive landscape in the bulk petroleum transportation sector. The primary focus was on assessing whether the agreement would lead to higher prices, reduced quality of service, or fewer choices for consumers as a result of reduced competition.

In delivering the judgment, the court found that while the agreement might have some anti-competitive effects, the overall benefits to the market outweighed these effects. The court concluded that the agreement would not substantially lessen competition and would likely lead to efficiencies that would benefit consumers through potentially lower prices and improved service quality. The court also considered the commitments offered by Linfox to address the ACCC's concerns, which further supported the approval of the agreement. The court determined that the agreement should be approved subject to the conditions set out in the order.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established