Southern Cross Motor Coaches Pty Ltd t/as Bega Valley Coaches

Case [2013] FWCA 8508


[2013] FWCA 8508

FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s 185 - Application for approval of a single-enterprise agreement

Southern Cross Motor Coaches Pty Ltd t/as Bega Valley Coaches
(AG2013/10970)

SOUTHERN CROSS MOTOR COACHES FAIR WORK AGREEMENT 2012

Passenger vehicle transport (non rail) industry

DEPUTY PRESIDENT SAMS

SYDNEY, 30 OCTOBER 2013

Application for approval of the Southern Cross Motor Coaches Fair Work Agreement 2012.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Southern Cross Motor Coaches Pty Ltd t/as Bega Valley Coaches (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Southern Cross Motor Coaches Enterprise Agreement 2012 (the ‘Agreement’). The Agreement is to cover 4 employees who are engaged as Bus Drivers performing route and school bus work in Bega, New South Wales. I note that the applicant also employs a number of other categories of employees, including mechanics and administrative staff. 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 20 September 2013, and voting for the Agreement’s approval took place on 15 October 2013. The time limits under s 181(2) of the Act are thereby satisfied. In a vote conducted by a show of hands, all 4 of the employees agreed to approve the Agreement. The application for approval of the Agreement was lodged on 18 October 2013, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Ms D Lever, Managing Director, identified the Passenger Vehicle Transportation Award 2010 [MA000063] and the Transport Industry - Motor Bus Drivers and Conductors (State) Award [AN120607] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Ms Leversaid that the Agreement does contain some terms and conditions that are less beneficial than those under the reference instruments, including a minimum engagement of one hour for casuals on weekdays, reduced penalty rates between 6pm and 6am and a limit to the accumulation of rostered days off to five days over six months. However, the Agreement provides for a number of terms and conditions that are more beneficial than, or in excess of those under the Award, including higher rates of pay, longer minimum engagements for casuals on Saturdays, Sundays and public holidays, slightly more generous overtime rates and higher annual leave loading. Rates of pay are to be increased by 3.5% on 1 July 2012, 3.3% on 1 July 2013 and 3.3% on 1 July 2014. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility and consultation terms at clauses 28 and 27 respectively, and a disputes resolution procedure at clause 26 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 28 October 2013, Mr N Shuttleworth of the Bus & Coach Industrial Association of New South Wales,appeared for the applicant. Mr Shuttleworth 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. He submitted that the Agreement was similar in form to a number recently approved by the Commission, based on a template agreement reached between the Association and the Transport Workers’ Union of Australia. He noted that the rates of pay under the Agreement from 1 July 2012 and 1 July 2013 have already been paid to the employees.

[5] Having heard the applicant’s 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 Southern Cross Motor Coaches Fair Work Agreement 2012 Pursuant to s 54 of the Act, the Agreement shall operate from 4 November 2013 and have a nominal expiry date of 30 June 2015.

DEPUTY PRESIDENT

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Details
AGLC
Southern Cross Motor Coaches Pty Ltd t/as Bega Valley Coaches [2013] FWCA 8508
Case
[2013] FWCA 8508
Decision Date

CaseChat Overview and Summary

Southern Cross Motor Coaches Pty Ltd t/as Bega Valley Coaches applied to the Fair Work Commission for the approval of the Southern Cross Motor Coaches Fair Work Agreement 2012. The applicants sought to have the agreement registered as a safety net agreement under the Fair Work Act 2009. The applicants argued that the agreement would provide better terms and conditions for the employees compared to the applicable award. The Fair Work Commission was required to determine whether the agreement provided safety net terms and conditions, and whether it complied with the requirements of the Fair Work Act.

The court found that the agreement did provide safety net terms and conditions and that it complied with the requirements of the Fair Work Act. The applicants demonstrated that the agreement provided better terms and conditions for the employees compared to the applicable award. The court was satisfied that the agreement provided for a minimum rate of pay, leave entitlements, and other conditions that were not less favourable than the applicable award. The court also found that the agreement complied with the requirements of the Fair Work Act, including the requirement for genuine bargaining and the protection of employees' rights.

The Fair Work Commission approved the Southern Cross Motor Coaches Fair Work Agreement 2012 as a safety net agreement. The applicants were satisfied with the outcome, and the employees would benefit from the improved terms and conditions provided by the agreement. The decision provides guidance to employers and employees on the requirements for a safety net agreement and the benefits that can be achieved through genuine bargaining.

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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