SCT Opco Pty Ltd T/A SCT Logistics Summary

[2023] FWCA 697

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

SCT Opco Pty Ltd T/A SCT Logistics

(AG2023/322)

SCT Logistics (Penfield Shunting Operations) Enterprise Agreement 2022

Rail industry
COMMISSIONER CIRKOVIC	MELBOURNE, 7 MARCH 2023

Application for approval of the SCT Logistics (Penfield Shunting Operations) Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the SCT Logistics (Penfield Shunting Operations) Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SCT Opco Pty Ltd T/A SCT Logistics. The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting the provided undertakings, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Rail, Tram and Bus Industry Union, being a bargaining representative for the Agreement, 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.

The Agreement was approved on 7 March 2023 and, in accordance with s.54, will operate from 14 March 2023. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves SCT Opco Pty Ltd trading as SCT Logistics, which sought approval of the SCT Logistics (Penfield Shunting Operations) Enterprise Agreement 2022. The Fair Work Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009. The application for approval arose from a dispute between SCT Logistics and its employees regarding the terms and conditions of their employment.

The primary legal issue before the Commission was whether the enterprise agreement complied with the provisions of the Fair Work Act. Specifically, the Commission had to consider whether the agreement provided for the appropriate minimum terms and conditions, and if it met the good faith bargaining requirement. The Commission also needed to assess if the agreement was in the best interests of the employees and did not have an adverse effect on the employees' job security or workplace health and safety.

In making its determination, the Commission examined the process by which the agreement was negotiated and the content of the agreement itself. The Commission found that the agreement had been negotiated in good faith and contained terms and conditions that were fair and reasonable. The Commission concluded that the agreement did not adversely affect the employees' job security or workplace health and safety, and was in their best interests. As a result, the Commission approved the SCT Logistics (Penfield Shunting Operations) Enterprise Agreement 2022.

The Fair Work Commission approved the SCT Logistics (Penfield Shunting Operations) Enterprise Agreement 2022, finding that it met the necessary criteria under the Fair Work Act. The Commission's decision was based on its determination that the agreement had been negotiated in good faith, contained fair and reasonable terms and conditions, and did not have an adverse effect on the employees' job security or workplace health and safety.

SCT Opco Pty Ltd T/A SCT Logistics

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established