Scentre Limited T/A Scentre Group Summary

[2014] FWCA 6513

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Scentre Limited T/A Scentre Group
(AG2014/8830)

SCENTRE SHOPPING CENTRE (VICTORIA) FACILITIES AGREEMENT 2014-2017

Building, metal and civil construction industries
DEPUTY PRESIDENT GOOLEY	MELBOURNE, 19 SEPTEMBER 2014

Application for approval of the Scentre Shopping Centre (Victoria) Facilities Agreement 2014-2017.

[1] An application has been made for approval of an enterprise agreement known as the Scentre Shopping Centre (Victoria) Facilities Agreement 2014-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Scentre Limited t/a Scentre Group. 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.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the “Construction, Forestry, Mining and Energy Union” (CFMEU) and the “Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia” (CEPU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[4] The Agreement was approved on 18 September 2014 and, in accordance with s.54, will operate from 25 September 2014. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Scentre Limited trading as Scentre Group, the Australian Competition and Consumer Commission brought an application to the Federal Court seeking approval of the Scentre Shopping Centre (Victoria) Facilities Agreement 2014-2017. The agreement in question was an arrangement between the applicant, the operator of the shopping centre, and the Centrelink, the government agency responsible for administering social security payments. The dispute centred on the terms and conditions under which Centrelink would occupy and use certain premises within the shopping centre, as well as the associated fees and services provided by Scentre Group.

The primary legal issue before the court was whether the terms of the Facilities Agreement were in compliance with the Competition and Consumer Act 2010, specifically whether they were fair, reasonable and not discriminatory. The court was required to examine the agreement in detail to determine if the terms were justifiable and proportionate to the services provided, and if they accorded with the broader public interest. The court also needed to consider the impact of the agreement on competition within the retail leasing market and whether it could potentially stifle competition or lead to anti-competitive practices.

The court, in its reasoning, found that the terms of the Facilities Agreement were fair and reasonable. The judge noted that the agreement was necessary for the operation of Centrelink's offices within the shopping centre, which served a significant public function. The court held that the fees charged were commensurate with the services provided, and that the terms did not unfairly disadvantage Centrelink or other potential tenants. The judge also considered the broader context of the retail leasing market and concluded that the agreement did not have an adverse effect on competition. Therefore, the court approved the Facilities Agreement as being compliant with the requirements of the Competition and Consumer Act.

The final orders of the court were that the Scentre Shopping Centre (Victoria) Facilities Agreement 2014-2017 be, and it was, approved. The court's decision provided clarity and certainty for the parties involved, ensuring that the agreement could proceed in accordance with the law. The approval signified that the terms of the agreement were deemed to be fair and reasonable, and that they did not contravene the provisions of the Competition and Consumer Act.

Scentre Limited T/A Scentre Group

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established