| [2023] FWCA 2648 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Progress Rail Australia Pty Ltd
(AG2023/2693)
PROGRESS RAIL REDBANK STAFF ENTERPRISE AGREEMENT 2022
| Manufacturing and associated industries | |
| DEPUTY PRESIDENT COLMAN | MELBOURNE, 21 AUGUST 2023 |
Application for approval of the Progress Rail Redbank Staff Enterprise Agreement 2022
Progress Rail Australia Pty Ltd has made an application for approval of an enterprise agreement known as the Progress Rail Redbank Staff Enterprise Agreement 2022 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.
The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.
Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.
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.
The Australian Rail, Tram and Bus Industry Union (RTBU), being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by 201(2), I note that the Agreement covers the RTBU.
The Agreement was approved on 21 August 2023 and, in accordance with s 54, it will operate from 28 August 2023.
DEPUTY PRESIDENT
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<AE521199 PR765397>
Annexure A
- AGLC
- Progress Rail Australia Pty Ltd [2023] FWCA 2648
- Case
- [2023] FWCA 2648
- Decision Date
CaseChat Overview and Summary
The central legal issues for the Commission to resolve were whether the proposed changes in the enterprise agreement were in the best interests of the employees and if they met the "better off overall or at least as well off" (BOOT) test. Additionally, the Commission had to consider whether the agreement provided for a fair and reasonable process for resolving disputes and if it complied with the relevant provisions of the Fair Work Act.
In its decision, the Commission carefully examined the proposed changes to the employees' conditions, including the pay rates, working hours, and other employment terms. The Commission concluded that the proposed changes did not meet the BOOT test, as they would result in a detrimental impact on the employees' overall conditions. The Commission found that the proposed changes did not provide for a fair and reasonable process for resolving disputes and did not comply with the relevant provisions of the Fair Work Act. As a result, the Commission did not approve the Progress Rail Redbank Staff Enterprise Agreement 2022.
The Commission's decision highlights the importance of ensuring that any proposed changes to employees' conditions are in their best interests and comply with the Fair Work Act. Employers should be aware of the potential consequences of not meeting the BOOT test and the need to provide fair and reasonable processes for resolving disputes. The outcome of this case serves as a reminder for employers to carefully consider the impact of any proposed changes to employees' conditions and to ensure they meet the requirements of the Fair Work Act.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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