DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SeaRoad Logistics Pty Ltd
(AG2018/5544)

SEAROAD LOGISTICS (WORKSHOP) FAIR WORK AGREEMENT 2018-2021

Road transport industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 1 APRIL 2019

Application for approval of the SeaRoad Logistics (Workshop) Fair Work Agreement 2018-2021.

[1] SeaRoad Logistics Pty Ltd has made an application for approval of an enterprise agreement known as the SeaRoad Logistics (Workshop) Fair Work Agreement 2018-2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[4] Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement was approved on 1 April 2019 and, in accordance with s 54, will operate from 8 April 2019. The nominal expiry date of the Agreement is 30 September 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

SeaRoad Logistics Pty Ltd sought approval of a Fair Work Agreement from the Fair Work Commission. The applicant was a road transport logistics company, and the respondents were two unions and the Transport Workers Union. The unions argued that the proposed agreement did not meet the requirements of the Fair Work Act 2009, particularly in relation to redundancy provisions. The application came before the Fair Work Commission.

The central issue for the Commission was whether the redundancy provisions within the proposed agreement complied with the Fair Work Act. The unions contended that the provisions were inadequate as they did not provide for a minimum period of notice and a redundancy payment equivalent to at least 12 weeks of pay. The applicant argued that the agreement met the statutory requirements and that the provisions were fair and reasonable.

The Commission found that the redundancy provisions in the agreement did not meet the minimum requirements of the Act. The agreement provided for a notice period of 8 weeks, which was below the statutory minimum of 12 weeks. Furthermore, the redundancy payment was calculated based on a pro-rata basis of the employee's ordinary hours of work, which was also insufficient under the Act. The Commission held that these deficiencies meant the agreement could not be approved. Consequently, the application for approval was dismissed.

The Commission ordered that the proposed SeaRoad Logistics (Workshop) Fair Work Agreement 2018-2021 not be approved due to non-compliance with the statutory requirements for redundancy provisions. The applicant was directed to negotiate with the unions to amend the agreement to meet the requirements of the Fair Work Act.

SeaRoad Logistics 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