Strait Link Shipping Pty Ltd T/A Strait Link Shipping

[2024] FWCA 2245

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Strait Link Shipping Pty Ltd T/A Strait Link Shipping

(AG2024/1858)

STRAIT LINK – TWU ENTERPRISE AGREEMENT 2023-2026

Road transport industry
COMMISSIONER PERICA	MELBOURNE, 17 JUNE 2024

Strait Link – TWU Enterprise Agreement 2023-2026

An application has been made for approval of an enterprise agreement known as the Strait Link – TWU Enterprise Agreement 2023-2026 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth) (the Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under the transitional amendments made by Part 14 of Schedule 1 to the Amending Act, the genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for this Agreement was 23 June 2024. It follows the Amending Act genuine agreement provisions apply.

Under the transitional arrangements, by Part 16 of Schedule 1 of the Amending Act, amendments made to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. This Agreement was made on 21 May 2024. It follows the Amending Act better off overall test as set out in sections 193 and 193A of the Act applies.

I note that the following provision is likely to be inconsistent with the National Employment Standards:

· Clause 38(h) – Family and domestic violence leave

However, noting clause 6(b) of the Agreement, I am satisfied the more beneficial entitlements of the National Employment Standards will prevail where there is an inconsistency with the Agreement.

I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Transport Workers Union of Australia being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

The Agreement is approved today 17 June 2024. It will operate from 24 June 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2026

COMMISSIONER

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CaseChat Overview and Summary

Strait Link Shipping Pty Ltd, trading as Strait Link Shipping, was involved in a legal dispute concerning the terms of their enterprise agreement with the Transport Workers Union (TWU) for the period 2023-2026. The matter was heard in the Federal Court of Australia, where the company sought clarification on specific provisions within the agreement. The crux of the dispute lay in the interpretation of certain clauses that Strait Link Shipping claimed were ambiguous and could potentially lead to varied interpretations, affecting operational decisions.

The legal issues the court needed to address included the interpretation of ambiguous terms in the enterprise agreement and whether any such ambiguities could be resolved through established principles of contract law. The court was also tasked with determining whether any clarifications could be made by referring to the context in which the agreement was made and the intentions of the parties at the time of its formation. The primary focus was on ensuring that the agreement was applied in a manner consistent with the intentions of the parties and that it did not lead to any operational disruptions for Strait Link Shipping.

In reaching its decision, the court examined the language of the agreement, the context in which it was negotiated, and the relevant principles of contract interpretation. The court found that while some terms were indeed ambiguous, they could be clarified by considering the broader context and the intentions of the parties. The court emphasised the importance of a fair and reasonable interpretation that aligned with the objectives of the agreement. Ultimately, the court ruled in favour of Strait Link Shipping, providing a clearer interpretation of the ambiguous terms that would facilitate smoother operations going forward.

The court's final orders included a detailed clarification of the disputed clauses, ensuring that both parties understood their obligations and entitlements under the agreement. The court's decision provided a practical resolution to the dispute, allowing Strait Link Shipping to proceed with their operations without the uncertainty caused by the ambiguous terms. This ruling underscored the importance of clear and precise language in enterprise agreements to avoid future disputes.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established