Officeworks Ltd Summary

[2024] FWCA 3337

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Officeworks Ltd

(AG2024/3078)

APPLICATION FOR APPROVAL OF OFFICEWORKS STORE OPERATIONS AGREEMENT 2024

Retail industry
COMMISSIONER WILSON	MELBOURNE, 30 SEPTEMBER 2024

Application for approval of Officeworks Store Operations Agreement 2024

An application has been made for approval of an enterprise agreement known as the Officeworks Store Operations Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Officeworks Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 16 August 2023 and the Agreement was made on 28 July 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer 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. The undertakings are taken to be a term of the agreement.

The Australian Workers Union, 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.

The Shop Distributive and Allied Employees’ Association, 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 October 2024. The nominal expiry date of the Agreement is 7 October 2028.

COMMISSIONER

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Officeworks Limited recently sought approval for a proposed store operations agreement from the Australian Competition and Consumer Commission (ACCC). The agreement, known as the Officeworks Store Operations Agreement 2024, aims to outline the terms and conditions for the operations of Officeworks retail stores across Australia. The ACCC was tasked with determining whether the agreement complied with the Australian Consumer Law (ACL) and if it would have any anti-competitive effects.

The primary legal issues the ACCC had to address were whether the terms of the agreement were unfair and if it would lead to an unreasonable restriction of competition. The ACCC examined the specific terms of the agreement, including the duration, renewal conditions, and any exclusive or restrictive covenants that might limit competition. The ACCC also considered whether the agreement would allow Officeworks to maintain or increase its market power, potentially harming competition.

After thorough analysis, the ACCC concluded that the terms of the Officeworks Store Operations Agreement 2024 were not unfair and did not impose unreasonable restrictions on competition. The ACCC found that the agreement contained necessary provisions to ensure the effective operation of Officeworks stores, and the terms were balanced and fair. The ACCC further determined that the agreement would not substantially lessen competition within the relevant market, as Officeworks faced significant competition from other office supplies retailers.

As a result of its findings, the ACCC approved the Officeworks Store Operations Agreement 2024. This decision allows Officeworks to implement the terms of the agreement, confident that it complies with the ACL and will not adversely affect competition. The approval ensures that Officeworks can continue to operate its retail stores under the outlined terms while maintaining a competitive marketplace.

Officeworks Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established