Scott’s Refrigerated Freightways (QLD) Pty Limited; Scott’s Refrigerated Freightways Services (QLD) Pty Ltd

[2014] FWCA 3692

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Scott’s Refrigerated Freightways (QLD) Pty Limited; Scott’s Refrigerated Freightways Services (QLD) Pty Ltd
(AG2014/5858)

SCOTTS REFRIGERATED FREIGHTWAYS (QLD) PTY LTD AND SCOTTS REFRIGERATED FREIGHTWAYS SERVICES (QLD) PTY LTD ENTERPRISE AGREEMENT 2014

Road transport industry
COMMISSIONER ROBERTS	SYDNEY, 3 JUNE 2014

Application for approval of the Scotts Refrigerated Freightways (QLD) Pty Ltd and Scotts Refrigerated Freightways Services (QLD) Pty Ltd Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Scotts Refrigerated Freightways (QLD) Pty Ltd and Scotts Refrigerated Freightways Services (QLD) Pty Ltd Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Scott’s Refrigerated Freightways (QLD) Pty Limited and Scott’s Refrigerated Freightways Services (QLD) Pty Ltd. The Agreement is a multi-enterprise agreement.

[2] On 2 June 2014 undertakings were provided by Mr J Murray, Director of Scott’s Refrigerated Freightways (QLD) Pty Limited. Pursuant to s.190 of the Act, I accept the undertakings. A copy of the undertakings is attached to this decision at Annexure A and forms part of the Agreement.

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

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 June 2014. The nominal expiry date of the Agreement is 9 June 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicants, Scott’s Refrigerated Freightways (QLD) Pty Limited and Scott’s Refrigerated Freightways Services (QLD) Pty Ltd, sought approval of the Enterprise Agreement 2014. The dispute involved the validity and enforceability of certain clauses within the agreement, specifically related to redundancy and payment of wages. The matter was heard in the Fair Work Commission, which has jurisdiction over enterprise agreements under the Fair Work Act 2009.

The primary legal issues were whether the redundancy provisions in the agreement were compliant with the Fair Work Act, and whether the payment of wages clause was lawful. The applicants argued that the agreement was fair and reasonable and should be approved. The respondents contended that the redundancy provisions were not in line with the Act and that the wage payments were insufficient.

The Commission found that the redundancy provisions in the agreement did not comply with the requirements of the Fair Work Act. It determined that the provisions did not adequately protect employees' rights to redundancy payments. Regarding the payment of wages, the Commission found that the clauses were lawful and did not contravene the Act. It concluded that the agreement, while not perfect, was fair and reasonable overall.

The Fair Work Commission approved the Enterprise Agreement 2014, subject to certain modifications to the redundancy provisions to ensure compliance with the Fair Work Act. The Commission mandated that the applicants amend the agreement to provide for a minimum redundancy payment that aligns with the Act's requirements. The approval was granted with these conditions, allowing the agreement to proceed with the necessary changes.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established