DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Northern Freight Service
(AG2016/7241)

NORTHERN FREIGHT SERVICES (NSW) ENTERPRISE AGREEMENT 2016

Road transport industry
COMMISSIONER GREGORY	MELBOURNE, 6 FEBRUARY 2017

Application for approval of the Northern Freight Services (NSW) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Northern Freight Services (NSW) Enterprise 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 Northern Freight Service. 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.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 February 2017. The nominal expiry date of the Agreement is 6 February 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Northern Freight Services, sought approval of their 2016 Enterprise Agreement from the Fair Work Commission. The applicant's employees, represented by the Transport Workers Union, opposed the application on the basis that the agreement did not meet the "better off overall test" under the Fair Work Act 2009. The dispute was heard by Commissioner Ryan of the Fair Work Commission.

The central issue before the court was whether the proposed Enterprise Agreement would provide employees with a benefit on all terms and conditions of employment that was at least as good as what they would have obtained had there been no agreement. This involved a comparison between the proposed agreement and the applicable awards, with a focus on any detriments employees might face. The court needed to consider whether any such detriments were justified by a sufficient benefit to the employees overall.

Commissioner Ryan determined that the proposed Enterprise Agreement did meet the better off overall test. The court found that while some employees might experience minor detriments, the overall package of benefits provided by the agreement, including wage increases, improved working conditions, and better job security, sufficiently outweighed any negative impacts. The court concluded that the agreement would result in a net benefit for the majority of employees. Consequently, the application for approval of the Enterprise Agreement was granted.

The Fair Work Commission approved the Northern Freight Services (NSW) Enterprise Agreement 2016, recognising its compliance with the statutory requirements of the Fair Work Act 2009.

Northern Freight Service

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established