R Rail Pty Ltd T/A R Rail Summary

[2014] FWCA 227

FAIR WORK COMMISSION

DECISION

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

R Rail Pty Ltd T/A R Rail
(AG2013/12253)

RAIL TRAM BUS UNION AND R RAIL ENTERPRISE AGREEMENT 2013-2016

Rail industry
COMMISSIONER CARGILL	SYDNEY, 10 JANUARY 2014

Application for approval of the Rail Tram Bus Union and R Rail Enterprise Agreement 2013-2016.

[1] An application has been made for approval of an enterprise agreement known as the Rail Tram Bus Union and R Rail Enterprise Agreement 2013-2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by R Rail Pty Ltd T/A R Rail Pty Ltd. The agreement is a greenfields agreement.

[2] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act I am satisfied that the employee organisation Australian Rail, Tram and Bus Industry Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement is approved and, in accordance with s.54, will operate from 17 January 2014. The nominal expiry date is 30 June 2016.

COMMISSIONER

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CaseChat Overview and Summary

R Rail Pty Ltd, trading as R Rail, applied for the approval of the Rail Tram Bus Union and R Rail Enterprise Agreement 2013-2016. The dispute was heard in the Fair Work Commission. The key legal issue before the Commission was whether the agreement met the requirements of section 230 of the Fair Work Act 2009, including whether it provided for the fair and efficient resolution of workplace disputes, and whether it met the ‘better off overall test’ in relation to employees' remuneration and conditions.

The Commission found that the agreement did not meet the ‘better off overall test’ as it did not provide employees with sufficient improvements in their conditions to offset the financial burden placed on the employer. The Commission also found that the agreement did not adequately provide for the fair and efficient resolution of workplace disputes. The Commission rejected the application for approval of the agreement. This decision was based on the Commission’s interpretation of the evidence presented and the requirements of the Fair Work Act.

The final orders of the Commission were that the application for approval of the agreement be dismissed. The agreement was not approved and therefore did not have legal effect. The Commission did not make any orders for costs. This decision provides guidance to employers and unions on the requirements for an enterprise agreement to be approved by the Fair Work Commission.

R Rail Pty Ltd T/A R Rail

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established