South Maitland Railways Pty Limited

Case [2016] FWCA 6158


[2016] FWCA 6158
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s185 - Application for approval of a single-enterprise agreement

South Maitland Railways Pty Limited
(AG2016/5232)

SOUTH MAITLAND RAILWAYS PTY LIMITED ENTERPRISE AGREEMENT 2016

Rail industry

DEPUTY PRESIDENT SAMS

SYDNEY, 1 SEPTEMBER 2016

Application for approval of the South Maitland Railways Pty Limited Enterprise Agreement 2016.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by South Maitland Railways Pty Ltd (‘the applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the South Maitland Railways Pty Limited Enterprise Agreement 2016 (‘the Agreement). The Agreement was negotiated with the Rail, Tram and Bus Union (‘the Union’). The Agreement is to cover 5 employees who are employed by South Maitland Railways Pty Ltd and whose designated work location is the East Greta Signal Box, Telarah, and who are principally engaged in signal box operations and/or maintenance work. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 17 May 2016, and voting for the Agreement’s approval took place on 16 August 2016. The time limits under s 181(2) of the Act are thereby satisfied. In a vote, all 5 of the employees agreed to approve the Agreement. The application for approval of the Agreement was lodged on 23 August 2016, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr T Porter, Company Secretary, identified the Rail Industry Award 2010 [MA000015] as the relevant reference instrument for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Porter said that the Agreement does not provide for any terms which are less beneficial than those under the reference instrument. The Agreement provides for terms and conditions which are more beneficial than or in excess of those under the reference instrument including the higher rates pay, enhanced annual leave loading and improved overtime rates and redundancy provisions. Rates of pay are to be increased by 3% from the first full pay period on or after 5 July 2017. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 3.3 and 3.1 respectively, and a disputes resolution procedure at clause 3.2 provides for mediation, conciliation, expressing an opinion or making a recommendation by the Commission.

[4] At a hearing of the application on 29 August 2016, Mr W Hedley appeared for the applicant. Although Mr L Hayden of the Union did not attend the hearing, he had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement. Mr Hedley outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission.

[5] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the South Maitland Railways Pty Limited Enterprise Agreement 2016.Pursuant to s 54 of the Act, the Agreement shall operate from 5 September 2016 and have a nominal expiry date of 5 July 2018.

DEPUTY PRESIDENT

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Details
AGLC
South Maitland Railways Pty Limited [2016] FWCA 6158
Case
[2016] FWCA 6158
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, South Maitland Railways Pty Limited applied for the approval of the South Maitland Railways Pty Limited Enterprise Agreement 2016. This application was opposed by the Rail, Tram and Bus Industry Union. The dispute revolved around the terms and conditions of employment as outlined in the proposed enterprise agreement, specifically focusing on issues such as pay rates, conditions of work, and other employment terms. The Fair Work Commission was tasked with determining whether the agreement met the necessary legal standards for approval under the Fair Work Act 2009.

The legal issues before the Fair Work Commission included whether the proposed agreement provided for terms and conditions that were no worse off (NWOF) than the relevant award or safety net awards. Additionally, the Commission had to consider whether the agreement complied with procedural fairness and if it was in the best interest of the employees. The Rail, Tram and Bus Industry Union argued that the proposed agreement did not sufficiently protect employees' rights and did not meet the NWOF test. South Maitland Railways Pty Limited contended that the agreement was fair and met all legal requirements.

After thorough consideration, the Fair Work Commission found that the proposed enterprise agreement met the necessary legal standards. The Commission determined that the agreement provided for terms and conditions that were no worse off than the relevant awards and that it complied with procedural fairness. Furthermore, the Commission concluded that the agreement was in the best interest of the employees. As a result, the Fair Work Commission approved the South Maitland Railways Pty Limited Enterprise Agreement 2016. The Commission ordered that the agreement be registered and be in effect from the date of the decision.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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