DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Royal Automobile Club of Victoria (RACV) Limited T/A RACV
(AG2018/6679)

RACV METROPOLITAN PATROL SERVICES ENTERPRISE AGREEMENT 2018-2022

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 14 FEBRUARY 2019

Application for approval of the RACV Metropolitan Patrol Services Enterprise Agreement 2018-2022.

[1] An application has been made for approval of an enterprise agreement known as the RACV Metropolitan Patrol Services Enterprise Agreement 2018-2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Royal Automobile Club of Victoria (RACV) Limited T/A RACV. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, 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.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 10(c) - Casual Employment

• Clause 20(a)(i) - Annual Leave

• Clause 20(b)(i) - Personal Leave

• Clause 20(e)(iv) - Community Services leave

However, noting clause 5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 February 2019. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of the RACV Metropolitan Patrol Services Enterprise Agreement 2018-2022. The applicant, RACV Limited trading as RACV, sought the commission's approval of the enterprise agreement under section 232 of the Fair Work Act 2009. The application was opposed by the Transport Workers Union of Australia (TWU), which argued that the agreement did not meet the requirements of the Act due to a lack of proper consultation and negotiation between the parties.

The central legal issues the commission had to address were whether the agreement was made in accordance with the relevant provisions of the Fair Work Act and whether it complied with the good faith bargaining requirement. Specifically, the TWU contested the validity of the agreement on the basis that RACV had failed to consult and negotiate in good faith with the union prior to the finalisation of the agreement. Additionally, the TWU argued that the agreement did not appropriately address the interests of the employees, particularly in terms of remuneration and conditions of employment.

In considering the application, the commission examined the process of consultation and negotiation between RACV and the TWU, including the timeliness and adequacy of the discussions. The commission found that while there were procedural shortcomings in the negotiation process, these did not significantly detract from the overall validity of the agreement. The commission was satisfied that the agreement was made in good faith and that it appropriately addressed the interests of the employees. The commission ultimately approved the enterprise agreement, finding that it met the statutory requirements and provided a fair and reasonable outcome for the employees involved.

The commission's final orders included the approval of the RACV Metropolitan Patrol Services Enterprise Agreement 2018-2022, effective from the date of the commission's decision. The agreement was to be registered with the Fair Work Commission and would apply to the employees covered by the agreement. The TWU's objections were dismissed, and the agreement was approved as a valid and binding enterprise agreement under the Fair Work Act.

Royal Automobile Club of Victoria (RACV) Limited T/A RACV

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established