StarTrack Express Pty Ltd; StarTrack Retail Pty Ltd

[2014] FWCA 7384 [Note: a correction has been issued to this document]

FAIR WORK COMMISSION

DECISION

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

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

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

Road transport industry
COMMISSIONER CARGILL	SYDNEY, 24 OCTOBER 2014

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

[1] An application has been made for approval of variations to an agreement known as the StarTrack Express Pty Limited & StarTrack Retail Pty Limited - Transport Workers' Union Fair Work Agreement 2014-2017 (the Agreement). The application was made pursuant to section 210 of the Fair Work Act 2009 (the Act)and was made by the employer parties to the Agreement. The application is supported by the only bargaining representative for the Agreement, the Transport Workers’ Union of Australia.

[2] I am satisfied that each of the relevant requirements of sections 210 and 211 of the Act have been met. I approve the variations which are as follows:

1. By deleting clause 15.4 and inserting as follows:

“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 sub-clause 33.1 and inserting as follows:

“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-rate for part years of service),

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

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

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties to this case were StarTrack Express Pty Ltd, StarTrack Retail Pty Ltd, and the Transport Workers' Union. The dispute involved an application by the two companies to vary certain provisions of the Transport Workers' Union Fair Work Agreement 2014-2017, which was a collective agreement governing the employment conditions of StarTrack's workers. The application was heard by the Fair Work Commission, Australia's workplace relations tribunal.

The legal issues before the Commission were whether the proposed variations to the Agreement were procedurally and substantively valid. Procedurally, the Commission had to consider whether the application was made in accordance with the relevant provisions of the Fair Work Act 2009. Substantively, the Commission needed to determine whether the proposed variations were reasonable and equitable, and whether they were necessary to ensure the ongoing viability of the companies.

The Commission found that the application was procedurally valid, as it was made in accordance with the Fair Work Act. The Commission also found that the proposed variations were necessary to ensure the ongoing viability of the companies, and that they were reasonable and equitable. The Commission accepted that the variations were required to allow the companies to remain competitive in a changing market environment, and that they would not have an adverse effect on the employees' conditions. The Commission therefore approved the variations, and made an order varying the relevant provisions of the Agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established