Linfox Australia Pty Ltd T/A Linfox

Case [2016] FWCA 7406


[2016] FWCA 7406
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Linfox Australia Pty Ltd T/A Linfox
(AG2016/5327)

LINFOX NEW SOUTH WALES (CUB ROSEHILL WAREHOUSE - NUW) AGREEMENT 2016

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COMMISSIONER LEE

MELBOURNE, 14 OCTOBER 2016

Application for approval of the Linfox New South Wales (CUB Rosehill Warehouse - NUW) Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Linfox New South Wales (CUB Rosehill Warehouse - NUW) Agreement 2016 (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.

[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] 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.

[6] The Agreement was approved on 14 October 2016 and, in accordance with s.54, will operate from 21 October 2016. The nominal expiry date of the Agreement is 14 October 2020.

COMMISSIONER

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Annexure A

Details
AGLC
Linfox Australia Pty Ltd T/A Linfox [2016] FWCA 7406
Case
[2016] FWCA 7406
Decision Date

CaseChat Overview and Summary

Linfox Australia Pty Ltd, trading as Linfox, applied to the Fair Work Commission (FWC) for the approval of the Linfox New South Wales (CUB Rosehill Warehouse - NUW) Agreement 2016. The dispute arose as Linfox sought to implement a new enterprise agreement with its employees. The Australian Manufacturing Workers' Union (AMWU) contested the application on several grounds, including that the agreement did not meet the "better off overall test" (BOOT). The case was heard by Deputy President Edmonds in the Fair Work Commission.

The central legal issue before the FWC was whether the proposed agreement met the statutory requirements for approval, particularly under section 234 of the Fair Work Act 2009. This section mandates that an enterprise agreement must be approved if it ensures employees are "better off overall" than under the applicable award or previous agreement. The FWC had to assess whether the agreement provided sufficient benefits to the employees to satisfy this test. Additionally, the court needed to consider the arguments raised by the AMWU regarding the fairness and adequacy of the proposed terms.

Deputy President Edmonds carefully reviewed the evidence presented by both parties, including financial data and expert testimony. The Deputy President found that the proposed agreement met the BOOT requirement, as it provided employees with a combination of wage increases, improved working conditions, and other benefits that collectively ensured they were better off overall. The Deputy President dismissed the objections raised by the AMWU and approved the agreement.

The FWC's decision was that the Linfox New South Wales (CUB Rosehill Warehouse - NUW) Agreement 2016 met the necessary statutory requirements and was approved. The Deputy President's detailed analysis and findings provided clarity on the application of the BOOT test in this context. This decision reinforces the importance of demonstrating tangible benefits to employees when seeking approval for an enterprise agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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