The Royal Automobile Club of Tasmania Limited T/A RACT

Case [2025] FWCA 3298


[2025] FWCA 3298

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

The Royal Automobile Club of Tasmania Limited T/A RACT

(AG2025/3232)

APPLICATION FOR APPROVAL OF THE ROYAL AUTOMOBILE CLUB OF TASMANIA LIMITED SALES AND ADMINISTRATIVE STAFF ENTERPRISE AGREEMENT 2025.

Banking finance and insurance industry

COMMISSIONER REDFORD

MELBOURNE, 1 OCTOBER 2025

Application for approval of the Royal Automobile Club of Tasmania Limited Sales and Administrative Staff Enterprise Agreement 2025.

  1. An application has been made for approval of an enterprise agreement known as the Royal Automobile Club of Tasmania Limited Sales and Administrative Staff Enterprise Agreement 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Royal Automobile Club of Tasmania Limited (RACT). The Agreement is a single enterprise agreement. 

Workplace Delegates Rights 

  1. As the Agreement does not contain a workplace delegates rights term, Pursuant to s 205A(2) of the Act, the workplace delegates’ rights term prescribed by clause 37A of the Clerks – Private Sector Award 2020 is taken to be a term of the Agreement.  

Consideration 

  1. On the basis of the material filed in support of this application for approval, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 of the Act as are relevant to this application have been met.

  1. The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the AMWU

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate 7 days after approval.

COMMISSIONER

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Details
AGLC
The Royal Automobile Club of Tasmania Limited T/A RACT [2025] FWCA 3298
Case
[2025] FWCA 3298
Decision Date

CaseChat Overview and Summary

The Royal Automobile Club of Tasmania Limited, trading as RACT, applied to the Fair Work Commission for the approval of the Royal Automobile Club of Tasmania Limited Sales and Administrative Staff Enterprise Agreement 2025. The application arose from negotiations between RACT and its employees, represented by the Automotive, Metals and Engineering Union. The employees sought improved conditions, including adjustments to their remuneration and the implementation of provisions designed to enhance their work-life balance.

The primary legal issues the Commission needed to address were whether the proposed agreement met the statutory requirements under the Fair Work Act 2009, and whether the terms were fair and reasonable. Specifically, the Commission examined if the agreement contained the minimum terms mandated by the Act and if it adhered to the "better off overall test," ensuring that the employees would not be worse off financially under the new agreement. The Commission also considered the fairness of the agreement's terms in light of the principles of enterprise bargaining and the broader economic context.

In its reasoning, the Commission highlighted that the agreement provided for a modest increase in base wages and included provisions that aimed to improve work-life balance, such as additional leave entitlements. The Commission noted that the proposed changes were consistent with the minimum terms set out in the Act and did not place the employees in a position worse than they would have been under their previous agreement. The Commission concluded that the agreement was fair and reasonable, meeting the statutory criteria for approval. Consequently, the Commission approved the enterprise agreement, thereby allowing the new terms to take effect from the specified date.

The final orders included the approval of the Royal Automobile Club of Tasmania Limited Sales and Administrative Staff Enterprise Agreement 2025, which was to be registered with the Fair Work Commission and would govern the employment conditions of the relevant employees from the effective date specified in the agreement.

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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