Silk Contract Logistics Pty Ltd

[2021] FWCA 6952

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Silk Contract Logistics Pty Ltd
(AG2021/8176)

SILK CONTRACT LOGISTICS PTY LTD CLAYTON ENTERPRISE AGREEMENT 2021

Storage services
COMMISSIONER YILMAZ	MELBOURNE, 6 DECEMBER 2021

Application for approval of the Silk Contract Logistics Pty Ltd Clayton Enterprise Agreement 2021

[1] An application has been made for approval of an enterprise agreement known as the Silk Contract Logistics Pty Ltd Clayton Enterprise Agreement 2021 (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. The undertakings are taken to be a term of 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 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] I observed that clause 6.2 and clause 5.2.3 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, to address this, the Employer provided a NES precedence clause which is in the undertaking at Annexure A, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The United Workers 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.

[6] The Agreement is approved and in accordance with s.54, will operate from 13 December 2021. The nominal expiry date of the Agreement is 2 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Silk Contract Logistics Pty Ltd applied to the Fair Work Commission for approval of their enterprise agreement. The agreement was intended to cover employees who are members of the Transport Workers Union. The parties disputed the fairness of certain terms, including pay rates and conditions for employees. The Fair Work Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement provided for minimum wages and conditions, whether it was free from coercion and undue influence, and whether it included appropriate dispute resolution mechanisms. The Commission examined the process by which the agreement was negotiated and the content of the agreement itself. It also considered submissions from the parties and any relevant precedents.

The Fair Work Commission found that the agreement met the necessary criteria for approval. The Commission was satisfied that the agreement provided for minimum wages and conditions, was free from coercion and undue influence, and included appropriate dispute resolution mechanisms. The Commission took into account the submissions from the parties and found that the agreement was fair and reasonable. The Commission approved the agreement and it will now be binding on the parties.

The Fair Work Commission ordered the approval of the Silk Contract Logistics Pty Ltd Clayton Enterprise Agreement 2021. The agreement will now be binding on the parties and will govern the employment conditions of the employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established