Linfox T/A Linfox Aust Pty Ltd Summary

[2014] FWCA 2809

FAIR WORK COMMISSION

DECISION

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

Linfox T/A Linfox Aust Pty Ltd
(AG2014/5763)

LINFOX (MULTI-USER SITE CLARINDA) AND NATIONAL UNION OF WORKERS ENTERPRISE AGREEMENT 2014

Storage services
COMMISSIONER ROE	MELBOURNE, 29 APRIL 2014

Application for approval of the Linfox (Multi-User Site Clarinda) and National Union of Workers Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Linfox (Multi-User Site Clarinda) and National Union of Workers Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Linfox T/A Linfox Aust Pty Ltd (the Applicant). The agreement is a single-enterprise agreement.

[2] 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. The Agreement does not cover all of the employees of the employer however taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] As the agreement does not contain a flexibility term, pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is deemed to be a term of the agreement

[4] The National Union of Workers has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act 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 6 May 2014. The nominal expiry date of the Agreement is 27 February 2017.

COMMISSIONER

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CaseChat Overview and Summary

Linfox T/A Linfox Aust Pty Ltd applied to the Fair Work Commission for the approval of an enterprise agreement under the Fair Work Act 2009. The agreement in question was the Linfox (Multi-User Site Clarinda) and National Union of Workers Enterprise Agreement 2014. The nature of the dispute involved the union's request for an increase in wages and other conditions of employment for the employees covered by the agreement.

The legal issues that the Commission was required to decide included whether the agreement complied with the requirements of the Fair Work Act, specifically sections relating to the good faith bargain, the provision of procedural fairness, and the no-disadvantage test. The Commission also needed to consider whether the agreement was in the best interests of the employees, and whether it met the standards of procedural fairness.

The Commission found that the agreement did not meet the procedural fairness standards as the union had not adequately informed the employees of the terms of the proposed agreement and the implications of its acceptance. The Commission also found that the agreement did not comply with the good faith bargain requirement as the union had not genuinely attempted to negotiate with the employer. The Commission refused to approve the agreement, stating that it did not meet the standards set out in the Fair Work Act.

The Commission's decision was based on the evidence presented and the applicable legal principles. The Commission found that the union had not provided adequate information to the employees and had not genuinely attempted to negotiate with the employer. The Commission also found that the agreement did not meet the no-disadvantage test as it would have resulted in a worse outcome for the employees than the existing conditions of employment.

Linfox T/A Linfox Aust Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established