DECISION

Fair Work Act 2009
s.185—Enterprise agreement

RACQ Operations Pty Ltd T/A RACQ
(AG2016/7975)

RACQ MOTORING ENTERPRISES (VEHICLE INSPECTIONS) ENTERPRISE AGREEMENT 2016 – 2019

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 7 MARCH 2017

Application for approval of the RACQ Motoring Enterprises (Vehicle Inspections) Enterprise Agreement 2016-2019.

[1] An application has been made for approval of an enterprise agreement known as the RACQ Motoring Enterprises (Vehicle Inspections) Enterprise Agreement 2016-2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by RACQ Operations Pty Ltd T/A RACQ. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 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.

[3] 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.

[4] The Australian Manufacturing Workers Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 7 March 2017 and, in accordance with s.54, will operate from 14 March 2017. The nominal expiry date of the Agreement is 31 October 2019.

COMMISSIONER

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CaseChat Overview and Summary

RACQ Operations Pty Ltd, trading as RACQ, sought approval for the RACQ Motoring Enterprises (Vehicle Inspections) Enterprise Agreement 2016-2019 before the Fair Work Commission. The agreement was intended to cover employees engaged in vehicle inspections within the motoring services sector. The application was opposed by the Australian Services Union, which argued that certain provisions of the agreement were not fairly negotiated and did not meet the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission involved whether the agreement had been genuinely negotiated, as required by the Act, and whether it contained terms that were unfair within the meaning of the Act. The Commission needed to determine whether the negotiation process complied with the legislative requirements and whether the terms of the agreement were fair and reasonable in all respects. The applicant argued that the agreement was the product of genuine bargaining and that its terms were fair and reasonable. The opposing party contended that the agreement did not meet the legislative standards due to procedural irregularities and certain terms being unfair.

The Commission found that the agreement had been genuinely negotiated and that it contained terms which were fair and reasonable. In reaching this conclusion, the Commission considered evidence regarding the negotiation process, the nature of the agreement, and the impact of its terms on the employees. The Commission was satisfied that the negotiation process complied with the relevant statutory requirements and that the terms of the agreement were fair and reasonable in all respects. Consequently, the Commission approved the agreement as meeting the necessary criteria for approval under the Act.

The Commission issued an approval order for the RACQ Motoring Enterprises (Vehicle Inspections) Enterprise Agreement 2016-2019, finding it to be genuinely negotiated and fair and reasonable. The order was made in accordance with section 234 of the Fair Work Act 2009, and the agreement was approved as of the date specified in the order.

RACQ Operations Pty Ltd T/A RACQ

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established