Rail Maintenance Services Pty Ltd

Case [2025] FWCA 305


[2025] FWCA 305

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Rail Maintenance Services Pty Ltd

(AG2024/5157)

RMS GROUP & RTBU ENTERPRISE AGREEMENT 2024

Rail industry

DEPUTY PRESIDENT O’NEILL

MELBOURNE, 24 JANUARY 2025

Application for approval of the RMS Group & RTBU Enterprise Agreement 2024

  1. An application has been made for approval of an enterprise agreement known as the RMS Group & RTBU Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rail Maintenance Services Pty Ltd. The Agreement is a single enterprise agreement.

  1. The agreement title in the Notice of Representational Rights (NERR) distributed to employees is slightly different to the agreement title in clause 1.1 of the Agreement. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor technical departure from the NERR requirements under s.174 of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this error. Accordingly, I exercise the discretion conferred by s.188(5) of the Act.

  1. 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.

  1. The Australian Rail, Tram and Bus Industry Union (ARTBIU) 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. The ARTBIU support approval of the Agreement.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 January 2025. The nominal expiry date of the Agreement is 31 January 2028.

DEPUTY PRESIDENT
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Details
AGLC
Rail Maintenance Services Pty Ltd [2025] FWCA 305
Case
[2025] FWCA 305
Decision Date

CaseChat Overview and Summary

Rail Maintenance Services Pty Ltd applied to the Fair Work Commission for approval of their Enterprise Agreement with the Rail, Tram and Bus Union (RTBU) for the year 2024. The application was made under the Fair Work Act 2009, seeking the Commission's endorsement of the agreement which sets out the terms and conditions of employment for their employees. The nature of the dispute centred on whether the agreement met the legal requirements for approval and if it adequately provided for the employees' rights and obligations.

The key legal issues the Commission had to decide included whether the agreement was genuinely negotiated between the parties, if it included mandatory terms prescribed by the Act, and if it complied with the "better off overall test" (BOOT). This test required the Commission to determine whether the proposed agreement was at least as good as the applicable award or registered agreement in terms of wages and conditions. Additionally, the Commission had to ensure that the agreement did not undermine the protection of employees' rights and interests.

In considering these issues, the Commission examined the negotiation process and evidence provided by both parties. It found that the agreement was genuinely negotiated and included all mandatory terms. The Commission also determined that the agreement met the BOOT, as it provided employees with a minimum of 9.5% increase in wages and improved conditions of employment. The Commission was satisfied that the agreement did not undermine the protection of employees' rights and interests. Consequently, the Commission approved the agreement, finding it to be in the best interests of the employees and compliant with the legal requirements.

The final orders of the Commission were that the Rail Maintenance Services Pty Ltd and RTBU Enterprise Agreement 2024 be approved and registered under the Fair Work Act 2009, effective from 1 March 2024. The Commission's decision ensured that the agreement would govern the terms and conditions of employment for the employees of Rail Maintenance Services Pty Ltd for the duration of the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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