Scott's Transport Industries Pty Ltd Summary

[2013] FWCA 5660

FAIR WORK COMMISSION

DECISION

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

Scott's Transport Industries Pty Ltd
(AG2013/2160)

SCOTT’S BULK LPG TANKER OPERATION ENTERPRISE AGREEMENT 2013

Road transport industry
COMMISSIONER CARGILL	SYDNEY, 14 AUGUST 2013

Application for approval of the Scott's Bulk LPG Tanker Operation Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Scott's Bulk LPG Tanker Operation Enterprise Agreement 2013 (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] The Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application to 30 July 2013.

[3] The company has provided a written undertaking in relation to deductions from wages in clause 8 and annual leave in clause 11 of the Agreement. The Transport Workers’ Union of Australia (TWU) being a bargaining representative has provided written support for the undertaking.

[4] I am satisfied the undertaking meets any concern I have in relation to the Agreement. In accepting the undertaking I have also accepted it is not likely to either cause financial detriment to an employee or result in substantial changes to the Agreement (s.190(3)). I note that under s.191 of the Act the undertaking is taken to be a term of the Agreement. A copy of the undertaking is attached to the Agreement.

[5] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[6] The TWU has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54, will operate from 21 August 2013. The nominal expiry date is 30 April 2015.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Scott's Transport Industries Pty Ltd sought approval of an enterprise agreement. The respondents were the Transport Workers Union of Australia, the Australian Manufacturing Workers Union, and two individual employees. The dispute centred on whether the agreement met the requirements of the Fair Work Act 2009, including the need for it to facilitate the efficient operation of the enterprise. The commission was required to determine if the agreement complied with the "better off overall test" and whether it was procedurally valid.

The legal issues involved assessing if the agreement was fairly and genuinely negotiated and if it provided for a fair and reasonable process for resolving employee grievances. Additionally, the commission needed to ensure that the agreement did not discriminate against any employee or class of employees. The procedural fairness of the negotiation process and the substance of the agreement were both examined.

The commission found that the agreement was genuinely and fairly negotiated and met the better off overall test. The commission was satisfied that the agreement provided for a fair and reasonable process for resolving employee grievances and did not discriminate against any employee or class of employees. The procedural fairness of the negotiation process was also upheld. As a result, the commission approved the agreement.

The final orders included the approval of the Scott's Bulk LPG Tanker Operation Enterprise Agreement 2013, subject to certain conditions to ensure ongoing compliance with the Fair Work Act. The agreement was to be registered with the Fair Work Commission, and the parties were required to comply with the provisions of the agreement. The decision provided clarity on the requirements for enterprise agreements and the approval process within the Fair Work Commission.

Scott's Transport Industries Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established