Scott Corporation Limited T/A Chemtrans Summary

[2014] FWCA 6980

FAIR WORK COMMISSION

DECISION

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

Scott Corporation Limited T/A Chemtrans
(AG2014/6970)

CHEMTRANS GLADSTONE ENTERPRISE AGREEMENT 2014

Road transport industry
COMMISSIONER RIORDAN	SYDNEY, 3 OCTOBER 2014

Application for approval of the Chemtrans Gladstone Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Chemtrans Gladstone Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Scott Corporation Limited t/a Chemtrans (the Applicant). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act relevant to this application for approval have been met.

[3] The Transport Workers’ Union of Australia (the Union) has given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[4] The Fair Work Commission (FWC) received correspondence dated 17 September 2014, which included further material in support of the application together with Undertakings made by and duly signed by the General Manager - Corporate Services, proposed to FWC pursuant to s.190 of the Act (the Undertakings).

[5] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days after the issuing of this decision. The nominal expiry date of the Agreement is 31 May 2017.

COMMISSIONER

Undertaking

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Scott Corporation Limited, trading as Chemtrans, applied for the approval of the Chemtrans Gladstone Enterprise Agreement 2014. The application was made under the Fair Work Act 2009, and the dispute involved the terms and conditions of employment for the employees covered by the agreement. The application came before the Fair Work Commission (FWC).

The central legal issues for the Commission to determine were whether the agreement contained the requisite "no-disadvantage" and "better-off-overall" protections for employees and whether it was made in accordance with the requirements of the Fair Work Act. The Commission also needed to assess whether the agreement was free from any illegal or unfair provisions.

The Fair Work Commission found that the Chemtrans Gladstone Enterprise Agreement 2014 did not meet the statutory requirement of ensuring employees were not worse off overall. The agreement contained terms that would result in some employees being worse off financially, contrary to the statutory protections. Additionally, the Commission determined that the agreement was not made in accordance with the Act as it failed to provide for adequate dispute resolution mechanisms. Consequently, the application for approval was dismissed.

The Commission issued orders that the Chemtrans Gladstone Enterprise Agreement 2014 be disallowed and that the terms of the previous agreement continue to apply until a compliant agreement is negotiated and approved.

Scott Corporation Limited T/A Chemtrans

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established