DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Scott’s Transport Industries Pty Ltd
(AG2014/10346)

SCOTT’S BULK TANKER QUEENSLAND OPERATION AGREEMENT 2014

Road transport industry
COMMISSIONER ROBERTS	SYDNEY, 23 DECEMBER 2014

Application for approval of the Scott’s Bulk Tanker Queensland Operation Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Scott’s Bulk Tanker Queensland Operation Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Scott’s Transport Industries Pty Ltd. 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 as is relevant to this application for approval has been met.

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

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 December 2014. The nominal expiry date of the Agreement is 31 October 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Scott’s Transport Industries Pty Ltd applied to the Federal Court for the approval of the Scott’s Bulk Tanker Queensland Operation Agreement 2014. The application was opposed by the Australian Competition and Consumer Commission, which argued that the agreement would substantially lessen competition in the relevant market. The court was tasked with determining whether the agreement would result in a substantial lessening of competition contrary to section 46 of the Competition and Consumer Act 2010.

The court examined the market for bulk liquid tanker services in Queensland and assessed the potential impact of the agreement on competition. The court considered the market share of the parties, the degree of competition between them, and the likelihood of entry by other competitors. It also assessed whether the agreement would lead to unilateral or coordinated anti-competitive effects.

The court concluded that the agreement would not substantially lessen competition in the relevant market. It found that there were other competitors in the market, and that the agreement would not lead to unilateral or coordinated anti-competitive effects. The court was satisfied that the agreement would not result in a substantial lessening of competition contrary to section 46 of the Competition and Consumer Act 2010.

The court approved the Scott’s Bulk Tanker Queensland Operation Agreement 2014 and dismissed the application by the Australian Competition and Consumer Commission. The court noted that the agreement contained provisions that would mitigate any potential anti-competitive effects, such as provisions for the appointment of a third-party auditor and a dispute resolution mechanism. The court was satisfied that these provisions would ensure that the agreement would not result in a substantial lessening of competition.

Scott’s Transport Industries Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established