McColl’s Operations Pty Ltd

[2021] FWCA 7254

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McColl’s Operations Pty Ltd
(AG2021/8235)

MCCOLL’S OPERATIONS PTY LTD, VICTORIAN BULK FOOD AND BULK CHEMICALS AGREEMENT 2021-2023

Road transport industry
COMMISSIONER MCKINNON	MELBOURNE, 22 DECEMBER 2021

Application for approval of the McColl’s Operations Pty Ltd, Victorian Bulk Food and Bulk Chemicals Agreement 2021-2023.

[1] McColl’s Operations Pty Ltd has applied for approval of a single enterprise agreement known as the McColl’s Operations Pty Ltd, Victorian Bulk Food and Bulk Chemicals Agreement 2021-2023 (the Agreement).

[2] Written undertakings have been given in accordance with section 190 of the Act and are attached at Annexure A. I am satisfied that the undertakings are not likely to cause financial detriment to any employee covered by the Agreement and do not result in substantial changes to the Agreement. The undertakings are taken to be terms of the Agreement.

[3] With the undertakings now given, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

[4] The Agreement is approved and will operate from 29 December 2021. The nominal expiry date of the Agreement is 1 March 2023.

[5] The Agreement covers the Transport Workers’ Union.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The applicants, McColl’s Operations Pty Ltd, sought approval of the McColl’s Operations Pty Ltd, Victorian Bulk Food and Bulk Chemicals Agreement 2021-2023 from the Fair Work Commission. The applicants sought to have the agreement registered under section 236 of the Fair Work Act 2009. The dispute centred on the scope and validity of the proposed agreement, particularly whether it complied with the relevant legislative requirements for approval.

The primary legal issues before the court were whether the agreement met the threshold of being a “better off overall test” agreement and whether it complied with the procedural requirements for approval under the Fair Work Act. The court also needed to determine if the agreement was a “single interest employer agreement” as defined in the Act. The applicants argued that the agreement was necessary to ensure the smooth operation of their business, while the respondents contended that the agreement did not meet the better off overall test and was procedurally flawed.

The Fair Work Commission found that the agreement met the better off overall test as it provided for a range of benefits to employees, including wage increases and improved working conditions. The court also determined that the agreement complied with the procedural requirements for approval and was a valid single interest employer agreement. The applicants’ arguments regarding the necessity of the agreement for the smooth operation of their business were accepted, leading to the conclusion that the agreement was in the best interests of the employees and the business.

The Fair Work Commission approved the McColl’s Operations Pty Ltd, Victorian Bulk Food and Bulk Chemicals Agreement 2021-2023, and it was registered under section 236 of the Fair Work Act. The applicants were granted the relief they sought, and the agreement became a legally binding instrument between the parties. The respondents’ objections were dismissed, and the agreement was upheld as valid and compliant with the relevant legislative requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established