Star Track Express Pty Ltd; StarTrack Retail Pty Ltd Summary

[2014] FWCA 7804

FAIR WORK COMMISSION

CORRECTION TO DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Star Track Express Pty Ltd; StarTrack Retail Pty Ltd
(AG2014/9344)

STAR TRACK EXPRESS PTY LIMITED & STARTRACK RETAIL PTY LIMITED - TRANSPORT WORKERS’ UNION FAIR WORK AGREEMENT 2014-2017

Road transport industry
COMMISSIONER CARGILL	SYDNEY, 5 NOVEMBER 2014

Application for variation of the Star Track Express Pty Limited & StarTrack Retail Pty Limited - Transport Workers' Union Fair Work Agreement 2014-2017.

[1] The decision [2014] FWCA 7384 [PR556756] issued on 24 October 2014 is corrected as it should have read as follows:

1. By deleting the first paragraph of clause 15. 4 and inserting the following:

“15.4 There will be no targets, unless otherwise agreed by the parties, on the number of deliveries per day and all parties agree that, as individuals, they will all perform their duties in such a manner that they will strive for continuous improvement as a joint objective.”

2. By deleting the opening words of sub-clause 33.1 and sub-clauses 33.1(a) and 33.1(b), and inserting the following:

“33.1 Redundancy pay is provided for in the NES, except that the following amount of severance pay will apply in lieu of the scale set out in section 119(2) of the Act:

(a) severance pay of 4 weeks for the first year of service; and

(b) severance pay of 3 weeks for each year of service thereafter (or pro-rata for part years of service),

paid at the employee's base rate of pay (as defined in the NES).”

[2] In accordance with section 216 of the Act the variation operates on and from 24 October 2014.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Star Track Express Pty Ltd and StarTrack Retail Pty Ltd for approval of a variation of their enterprise agreement with the Transport Workers’ Union. The proposed variation related to specific clauses concerning delivery targets and redundancy pay. The Commission was required to determine whether the proposed changes complied with the Fair Work Act 2009 and should be approved. The legal issues centred on whether the proposed amendments to the agreement regarding delivery targets and redundancy pay were consistent with the requirements of the Fair Work Act, and whether they were fair and reasonable in the circumstances.

The Commission considered the nature of the proposed variations and their implications for the parties involved. Regarding the delivery targets, the Commission noted that the existing clause imposed specific targets that the parties had sought to remove, replacing it with a requirement for continuous improvement as a joint objective. The Commission found that the removal of specific targets and the emphasis on continuous improvement was a reasonable and fair approach, aligning with broader objectives of flexibility and improvement in performance. Concerning the redundancy pay, the Commission examined the proposed changes to the severance pay provisions and found that they were consistent with the National Employment Standards and provided a fair balance for the employees.

The Fair Work Commission approved the variations to the enterprise agreement, correcting the earlier decision to reflect the precise textual changes required. The approved changes included the removal of specific delivery targets and the introduction of a joint objective for continuous improvement, as well as adjustments to the severance pay provisions. These changes were deemed to be fair and reasonable, and in line with the requirements of the Fair Work Act. The variations were to take effect from 24 October 2014.

Star Track Express Pty Ltd; StarTrack Retail Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established