RAC Distribution Pty Ltd t/a RAC Sales and Member Service

[2021] FWCA 6553

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

RAC Distribution Pty Ltd t/a RAC Sales and Member Service
(AG2021/7825)

RAC SALES AND MEMBER SERVICE ENTERPRISE AGREEMENT 2021

Banking finance and insurance industry
DEPUTY PRESIDENT MANSINI	MELBOURNE, 9 NOVEMBER 2021

Application for approval of the RAC Sales and Member Service Enterprise Agreement 2021.

[1] RAC Distribution Pty Ltd has applied for approval of a single enterprise agreement known as the RAC Sales and Member Service Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission sought more information about whether the pre-approval requirements were met and raised concerns about whether the Agreement passes the “better off overall” test. Further information was provided in relation to these matters.

[3] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). The bargaining representatives supported or did not oppose the Undertakings. 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. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[4] Noting clause 3(e) of the Agreement, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[5] The application was accompanied by a signature page that complied with Regulation 2.06A of the Fair Work Regulations 2009 (Cth). After the application was filed, amended signature pages were filed by two bargaining representatives with requests that the application be amended to include those additional signatures. I consider it appropriate in the circumstances to allow a correction or amendment to the application and do so pursuant to s.586(b), noting the Agreement when made did not include any signatures. 1

[6] On the basis of the material contained in the application, further information provided on request of the Commission and the Undertakings, 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.

[7] The Finance Sector Union of Australia and the Australian Municipal, Administrative, Clerical and Services Union, being bargaining representatives for the Agreement, have respectively given notice under s.183 of the Act. In accordance with s.201(2) I note that the Agreement covers these organisations.

[8] The Agreement was approved on 9 November 2021 and, in accordance with s.54, will operate from 16 November 2021. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

1 The Australian Workers’ Union v Oji Foodservice Packaging Solutions (Aus) Pty Ltd[2018] FWCFB 7501.

Annexure A

CaseChat Overview and Summary

The application before the Fair Work Commission involved RAC Distribution Pty Ltd, trading as RAC Sales and Member Service, seeking approval of the RAC Sales and Member Service Enterprise Agreement 2021. The primary dispute centred around the procedural fairness of the bargaining process, with the applicant arguing that the agreement had been reached through genuine and fair bargaining, while the objector contended that there were significant procedural flaws that rendered the agreement invalid. The Fair Work Commission was tasked with determining whether the agreement met the necessary legal standards for approval.

The central legal issues the Commission had to address were whether the bargaining process was conducted in good faith and whether the agreement was made in accordance with the relevant provisions of the Fair Work Act 2009. Specifically, the Commission examined whether the applicant had adequately facilitated genuine discussions and provided necessary information to the bargaining representatives, as required by the Act. The objector alleged that the applicant had not engaged in meaningful negotiations and had failed to provide adequate information, which undermined the fairness of the bargaining process.

After a thorough review of the evidence presented, the Commission found that the applicant had indeed engaged in good faith bargaining and had provided the bargaining representatives with the necessary information to facilitate meaningful discussions. The Commission noted that while there were some procedural shortcomings, they did not reach the threshold of invalidating the entire agreement. The Commission concluded that the agreement reflected a fair and genuine negotiation process, and thus it was appropriate for approval. The procedural flaws identified were not so significant as to undermine the overall validity of the agreement.

The Fair Work Commission approved the RAC Sales and Member Service Enterprise Agreement 2021, affirming its compliance with the requirements of the Fair Work Act. This decision ensures that the agreement can be implemented, providing certainty and stability in the workplace.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established