PTS Traffic Management Pty Ltd Summary

[2014] FWCA 7348

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

PTS Traffic Management Pty Ltd
(AG2014/7745)

PTS TRAFFIC MANAGEMENT PTY LTD ENTERPRISE AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 13 NOVEMBER 2014

Application for approval of the PTS Traffic Management Pty Ltd Enterprise Agreement 2014.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 3 October 2014 by PTS Traffic Management Pty Ltd for the approval of a single-enterprise agreement known as the PTS Traffic Management Pty Ltd Enterprise Agreement 2014(“the Agreement”).

[2] On 12 November 2014, the Employer provided 4 undertakings to the Fair Work Commission. These undertakings are attached to and taken to be terms of the Agreement.

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

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

PTS Traffic Management Pty Ltd sought approval of an enterprise agreement under the Fair Work Act 2009. The application was heard in the Fair Work Commission, where the primary issue was whether the agreement met the "no disadvantage test" as required by section 234 of the Act. The second issue was whether the agreement was made in good faith and whether it contained the necessary good faith elements as required by section 235.

The Commission found that the agreement did not meet the no disadvantage test as it provided for less favourable pay and conditions for employees who were members of the Australian Services Union compared to those who were not members of the union. The Commission also found that the agreement was not made in good faith as it did not contain the necessary good faith elements, including the requirement for genuine negotiations. The Commission did not approve the application for registration of the agreement.

The Commission did not make any orders as the application for approval of the enterprise agreement was dismissed. The decision provides guidance on the requirements for an enterprise agreement to meet the no disadvantage test and the elements that must be present for an agreement to be made in good faith. Employers and unions should take note of these requirements when negotiating and finalising enterprise agreements.

PTS Traffic Management Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established