SeaRoad Logistics Pty Ltd

[2024] FWCA 3946

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

SeaRoad Logistics Pty Ltd

(AG2024/3641)

SEAROAD LOGISTICS (WORKSHOP) FAIR WORK AGREEMENT 2024-2027

Road transport industry
COMMISSIONER ALLISON	MELBOURNE, 14 NOVEMBER 2024

Application for approval of the SeaRoad Logistics (Workshop) Fair Work Agreement 2024-2027

SeaRoad Logistics Pty Ltd (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the SeaRoad Logistics (Workshop) Fair Work Agreement 2024-2027 (the Agreement).

The agreement title on the Notice of Employee Representational Rights (NERR) that was issued to the employees was the “SeaRoad Logistics (Workshop) Fair Work Agreement 2024” which does not match the title of the Agreement to be approved. The NERR was also not in the current form prescribed by the regulations. I am satisfied that these were minor procedural or technical errors and that the employees were not likely to have been disadvantaged by them. Accordingly, I exercise the discretion conferred by s.188(5) of the Act to disregard these errors.

The Agreement does not contain a delegates’ rights term, as required by s.205A(1) of the Act. However, noting clauses 9.1 and 9.2 of the Agreement, I am satisfied that the workplace delegates’ rights term in Clause 34A of the Vehicle Repair, Services and Retail Award 2020 (the Award) is incorporated into the Agreement.

Clause 35.4 of the Agreement appears to be inconsistent with the National Employment Standards (NES) because it provides a lower redundancy payment entitlement for employees with between one and two and a half of years of service, when compared with s.119 of the Act.

However, noting clause 8.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

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

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 November 2024, notwithstanding clause 6.1 of the Agreement. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

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CaseChat Overview and Summary

SeaRoad Logistics Pty Ltd sought approval for a workplace agreement under the Fair Work Act 2009, with the application being heard in the Fair Work Commission. The dispute centred around whether the proposed SeaRoad Logistics (Workshop) Fair Work Agreement 2024-2027 complied with the statutory requirements for an enterprise agreement. The company argued that the agreement was fair and reasonable, while the union representing the employees contested various aspects of the agreement.

The court was tasked with determining if the agreement met the criteria for approval, particularly focusing on whether the agreement was a genuine enterprise agreement, was free from prohibited content, and was procedurally fair. The key issues involved scrutiny of the agreement's negotiation process, the fairness of its terms and conditions, and its compliance with the requirements set out in the Fair Work Act.

The Fair Work Commission concluded that the proposed agreement was a genuine enterprise agreement that adhered to the procedural and substantive fairness standards. The court found that the negotiation process was robust and that the agreement's terms and conditions were reasonable in the circumstances. The union's objections were largely dismissed as the court found that the agreement did not contain any prohibited content and was fair and reasonable in all respects. Consequently, the court approved the SeaRoad Logistics (Workshop) Fair Work Agreement 2024-2027.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established