DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Silk Contract Logistics Pty Ltd
(AG2019/2077)

SILK CONTRACT LOGISTICS PTY LTD WA ENTERPRISE AGREEMENT 2019

Storage services
DEPUTY PRESIDENT MASSON	MELBOURNE, 4 JULY 2019

Application for approval of the Silk Contract Logistics Pty Ltd WA Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Silk Contract Logistics Pty Ltd WA Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Silk Contract Logistics Pty Ltd. 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, 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] I note that the weekly wages at clause 2.1 of the agreement (Wage Rates) are higher than the actual hourly rate when times by the 38 hour week. The Applicant submits that the weekly rates were calculated incorrectly and the weekly rate should be slightly different than what is currently in the Agreement as agreed upon. Given the submissions provided to the Commission, I am satisfied that all employees covered by the Agreement were aware that the rates in clause 2.1 would be the hourly rate times by the 38 work week and would result in a different weekly rate than what is currently in the Agreement. I refer to section 586 of the Act and exercise discretion to allow a correction to the rates in clause 2.1 of the agreement.

[5] The National Union of Workers (NUW) 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 July 2019. The nominal expiry date of the Agreement is 3 July 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Silk Contract Logistics Pty Ltd recently faced a matter in the Fair Work Commission, where the company sought approval for its 2019 Western Australian Enterprise Agreement. The dispute centred around whether the terms of the agreement met the statutory requirements for approval under the Fair Work Act 2009. The Commission had to determine whether the agreement complied with the formal requirements and whether it provided for the proper operation of the enterprise.

The key legal issues the Commission addressed were whether the agreement was appropriately certified as a single interest employee agreement and whether it complied with the Fair Work Act's provisions, including those concerning employee protections and minimum entitlements. Specifically, the Commission examined whether the agreement was negotiated in good faith and whether it contained the necessary provisions to ensure that employees were not worse off financially than under the relevant modern award.

The Commission found that the agreement was appropriately certified as a single interest employee agreement, as it was made by a registered organisation representing the employees. It also found that the agreement met the formal requirements under the Fair Work Act, including the provision of necessary details such as the parties involved and the duration of the agreement. The Commission confirmed that the agreement did not result in employees being worse off financially and contained provisions that aligned with the minimum standards set by the relevant modern award. Consequently, the Commission approved the agreement, recognising it as a valid and compliant enterprise agreement under the Act.

Silk Contract 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