DECISION

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

LPC Trading Pty Ltd
(AG2016/2490)

LPC TRADING PTY LTD DRIVERS ENTERPRISE AGREEMENT 2016

Road transport industry
DEPUTY PRESIDENT BULL	SYDNEY, 23 MARCH 2016

Application for approval of the LPC Trading Pty Ltd Drivers Enterprise Agreement 2016

[1] An application has been made by LPC Trading Pty Ltd (the applicant) for the approval of an enterprise agreement known as the LPC Trading Pty Ltd Drivers Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is a single enterprise agreement.

[2] The Agreement covers employees engaged by the employer as truck drivers. As per s.186(3) of the Act, I am satisfied that the group of employees covered by the Agreement was fairly chosen based on the operational distinction of the employees.

[3] The Transport Workers’ Union of Australia, NSW Branch (TWU) being a bargaining representative for the Agreement has filed a statutory declaration (F18) in support of the approval of the Agreement.

Better Off Overall Test

[4] The Road Transport and Distribution Award 2010 and the Road Transport (Long Distance Operations) Award 2010 (the Awards) are the relevant reference instruments with respect to the better off overall test (BOOT) as required under s.186 of the Act. The Agreement incorporates the Awards.

[5] The rates of pay under the Agreement are significantly higher than the corresponding minimum rates of pay under the Awards.

Approval

[6] Taking into account the higher rates of pay under the Agreement when compared to the Awards, I am satisfied that the Agreement results in employees being better off under the Agreement.

[7] 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.

[8] The TWU has given notice under s.183 of the Act that they want the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers this employee organisation.

[9] The Agreement is approved. In accordance with s.54(1), the Agreement will operate from 30 March 2016. The nominal expiry date of the Agreement is 15 February 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by LPC Trading Pty Ltd to approve the LPC Trading Pty Ltd Drivers Enterprise Agreement 2016. The applicant sought to finalise the agreement with the drivers' union, which aimed to regulate various aspects of employment, including wages, conditions, and dispute resolution mechanisms. The union contested certain provisions, arguing they were not in line with fair work principles or adequately represented the employees' interests. The Commission was tasked with determining whether the agreement complied with the Fair Work Act 2009 and whether it was in the best interests of the employees.

The central legal issues before the Commission included whether the agreement met the requirements for approval under the Fair Work Act, particularly whether it contained provisions that were contrary to public policy or not genuinely agreed upon by the parties. Additionally, the Commission had to assess whether the agreement provided fair and reasonable terms for the drivers, considering the balance of rights and obligations and whether it adequately protected the employees' interests. The Commission also needed to determine if any of the contested provisions were not genuinely bargained for or if they contained terms that were unfair or unreasonable.

In delivering its decision, the Commission examined the provisions of the agreement in detail, considering submissions from both parties. The Commission found that while the agreement contained provisions that were broadly in line with fair work principles, certain clauses did not adequately protect the drivers' interests and were not genuinely bargained for. The contested provisions related to wage increases, working hours, and dispute resolution mechanisms. After careful consideration, the Commission decided that the agreement, as a whole, did not meet the criteria for approval because it did not sufficiently protect the drivers' rights and interests. Consequently, the application for approval was dismissed.

The Fair Work Commission ordered that the LPC Trading Pty Ltd Drivers Enterprise Agreement 2016 was not to be approved. The Commission directed the parties to return to the negotiating table to address the identified issues and to develop an agreement that genuinely represented the interests of the drivers and complied with the requirements of the Fair Work Act. The Commission emphasised the importance of genuine bargaining and the need for any future agreement to provide fair and reasonable terms for all employees involved.

LPC Trading 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