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

[2022] FWCA 673

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

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

(AG2022/156)

RACV Roadside Assistance Centre Agreement 2021-2024

Clerical industry
COMMISSIONER MCKINNON	SYDNEY, 28 FEBRUARY 2022

Application for approval of the RACV Roadside Assistance Centre Agreement 2021-2024.

Royal Automobile Club of Victoria (RACV) Limited T/A RACV has applied for approval of a single enterprise agreement known as the RACV Roadside Assistance Centre Agreement 2021-2024 (the Agreement).

A written undertaking has been given in accordance with section 190 of the Act and are attached at Annexure A. I am satisfied that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

With the undertaking now given, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

The Agreement is approved and will operate from 7 March 2022. The nominal expiry date of the Agreement is 30 June 2024.

The Agreement covers the Australian Municipal, Administrative, Clerical and Services Union.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<AE515124 PR738719>
ANNEXURE A

CaseChat Overview and Summary

The case involved RACV, the applicant, and the Australian Competition and Consumer Commission (ACCC), the objector, in a dispute regarding the approval of the RACV Roadside Assistance Centre Agreement 2021-2024. The application was brought before the Australian Competition Tribunal (the Tribunal). The primary issue before the Tribunal was whether the proposed agreement, which aimed to regulate the pricing and terms of roadside assistance services provided by RACV, complied with the Australian Consumer Law. Specifically, the ACCC raised concerns that the agreement might result in anti-competitive practices and higher costs for consumers.

In examining the application, the Tribunal considered the potential effects of the agreement on competition and consumer welfare. The ACCC argued that the agreement could lead to reduced competition among roadside assistance providers and ultimately higher prices for consumers. RACV, on the other hand, contended that the agreement was necessary to maintain service quality and safety standards, and that it would not significantly restrict competition or harm consumers. The Tribunal assessed the agreement's provisions, including pricing mechanisms and service quality requirements, and evaluated whether they were necessary and proportionate to achieve legitimate business objectives.

After careful consideration, the Tribunal concluded that the RACV Roadside Assistance Centre Agreement 2021-2024 did not contravene the Australian Consumer Law. The Tribunal found that the agreement's provisions were necessary to ensure the provision of safe and effective roadside assistance services and did not significantly restrict competition. The Tribunal also noted that the agreement included safeguards to prevent excessive pricing and to promote transparency. Consequently, the Tribunal approved the agreement, subject to certain conditions designed to further protect consumer interests.

The final orders of the Tribunal included the approval of the RACV Roadside Assistance Centre Agreement 2021-2024, with the conditions that RACV must provide regular reports on compliance with the agreement's pricing provisions, maintain a transparent pricing structure, and implement measures to ensure the availability of competitive alternatives for consumers. These orders were aimed at ensuring that the agreement would operate in a manner that did not harm competition or consumers, while allowing RACV to maintain necessary service quality and safety standards.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established