Path Transit Pty Ltd

[2018] FWCA 2863

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Path Transit Pty Ltd

(AG2017/6360)

Path Transit Maintenance Employees Enterprise Agreement 2018

Vehicle industry
Commissioner Harper-Greenwell	MELBOURNE, 21 MAY 2018

Application for approval of the Path Transit Maintenance Employees Enterprise Agreement 2018.

An application has been made for approval of an enterprise agreement known as the Path Transit Maintenance Employees Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Path Transit Pty Ltd. The Agreement is a single enterprise agreement.

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.

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. 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.

The Agreement was approved on 21 May 2018 and, in accordance with s.54, will operate from 28 May 2018. The nominal expiry date of the Agreement is 21 May 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case of Path Transit Pty Ltd, the Fair Work Commission (FWC) was tasked with determining the approval of the Path Transit Maintenance Employees Enterprise Agreement 2018. The application was brought by the employer, Path Transit Pty Ltd, seeking approval of the proposed agreement which was intended to regulate the employment terms and conditions for maintenance employees. The dispute arose as the union representing the employees, the Rail, Tram and Bus Industry Union (RTBU), had lodged an objection to the proposed agreement, raising concerns about the fairness and adequacy of certain provisions.

The key legal issues before the Commission involved the assessment of whether the proposed agreement met the requirements for approval under the Fair Work Act 2009. Specifically, the Commission had to consider whether the agreement provided for fair and reasonable terms and conditions, including remuneration, hours of work, and other workplace matters. Furthermore, the Commission needed to determine if the agreement complied with the “better off overall test” and whether it was made in good faith and without coercion.

In its reasoning, the Commission emphasised the importance of maintaining a balance between the rights and obligations of both employers and employees. The Commission acknowledged the employer's need for operational flexibility while also recognising the importance of ensuring employees were not disadvantaged by the proposed terms. The Commission ultimately found that the agreement did not fully meet the requirements for approval due to certain provisions that did not satisfy the better off overall test. The Commission noted that the proposed changes would have resulted in a reduction in overall pay and conditions for some employees, which was not adequately justified.

The Fair Work Commission decided not to approve the proposed enterprise agreement. The Commission's decision highlighted the necessity for agreements to provide fair and reasonable terms and conditions for employees, ensuring they are not worse off overall. The Commission's determination underscores the importance of maintaining a balanced approach in industrial relations matters, where both parties' interests must be fairly considered.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established