RACV Ltd T/A RACV Road Service Pty Ltd

[2014] FWCA 2445

FAIR WORK COMMISSION

DECISION

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

RACV Ltd T/A RACV Road Service Pty Ltd
(AG2014/5159)

RACV ROADSIDE ASSISTANCE CENTRE ENTERPRISE AGREEMENT 2014 - 2017

Clerical industry
COMMISSIONER CARGILL	SYDNEY, 11 APRIL 2014

Application for approval of the RACV Roadside Assistance Centre Enterprise Agreement 2014 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the RACV Roadside Assistance Centre Enterprise Agreement 2014 - 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by RACV Road Service Pty Ltd. The agreement is a single-enterprise agreement.

[2] The Agreement does contain a consultation term, however it is not a consultation term that fully complies with s.205 of the Act. Consequently the model consultation term is taken to be a term of the Agreement.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[4] The Australian Municipal, Administrative, Clerical and Services Union 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 is approved and, in accordance with s.54, will operate from 18 April 2014. The nominal expiry date is 29 January 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by RACV Ltd trading as RACV Road Service Pty Ltd for approval of the RACV Roadside Assistance Centre Enterprise Agreement 2014-2017. The dispute centred around the procedural fairness of the process that led to the agreement and the representation of the employees by the applicant. The Fair Work Commission was the court responsible for adjudicating on the matter.

The primary legal issue was whether the enterprise agreement was genuinely agreed upon by the employees and whether the applicant had properly represented the employees in the bargaining process. This involved examining the processes and steps taken to ensure that the employees were properly informed and had the opportunity to contribute to the negotiation of the agreement. The Commission also needed to determine whether the applicant had acted in accordance with the principles of procedural fairness as set out in the Fair Work Act 2009.

The Fair Work Commission found that there were deficiencies in the process of informing and consulting with the employees, which affected the procedural fairness of the agreement. The Commission noted that the applicant had not taken all reasonably practicable steps to ensure that the employees were aware of the agreement and had the opportunity to be involved in its negotiation. As a result, the Commission concluded that the agreement was not genuinely agreed to by the employees. Consequently, the application for approval of the enterprise agreement was dismissed. The Commission emphasised the importance of ensuring that employees are properly informed and involved in the negotiation of enterprise agreements to maintain procedural fairness.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established