Townsend's Bus Travel Pty Ltd t/as Townsend's Bus Travel

Case [2015] FWCA 2691


[2015] FWCA 2691
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Townsend's Bus Travel Pty Ltd t/as Townsend's Bus Travel
(AG2015/757)

TOWNSEND'S BUS TRAVEL DRIVERS ENTERPRISE AGREEMENT 2015

Passenger vehicle transport (non rail) industry

DEPUTY PRESIDENT SAMS

SYDNEY, 21 APRIL 2015

Application for approval of the Townsend's Bus Travel Drivers Enterprise Agreement 2015.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Townsend’s Bus Travel Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Townsend’s Bus Travel Drivers Enterprise Agreement 2015 (the ‘Agreement’). The Agreement is to cover 26 employees who are employed as Bus and Coach Drivers based in Renmark, South Australia. 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 13 February 2015, and voting for the Agreement’s approval took place on 17 March 2015. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 17 of the 19 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 31 March 2015, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr S Johnson, General Manager, identified the Passenger Vehicle Transportation Award 2010 [MA000063] and the Transport Workers (Passenger Vehicle) Award 2002 (Part A & B) [AP818060] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Johnsonsaid that the Agreement does provide for some terms and conditions that are less beneficial than those under the reference instruments, in that a number of allowances and penalty rates have been removed. However, these have been factored into a higher base rate of pay. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory flexibility term at cl 3.5 and the consultation term at cl 3.2. A disputes resolution procedure at clause 3.4 provides for conciliation and arbitration by the Commission.

[4] At a hearing of the application on 14 April 2015, Mr I MacDonald of the Australian Public Transport Industrial Associationappeared with Mr S Johnson for the applicant and Mr E Lawrie and Mr I Smith for the Union. Mr MacDonald 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 explained that the rates of pay are approximately $2-3 per hour higher than those under the reference instruments. Mr Lawrie said that the Union had not received a copy of the Agreement or the accompanying application documentation at the time of the hearing. However, the Union subsequently filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement.

[5] Having heard the parties’ 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 Townsend’s Bus Travel Drivers Enterprise Agreement 2015.Pursuant to s 54 of the Act, the Agreement shall operate from 21 April 2015 and have a nominal expiry date of 31 March 2019.

DEPUTY PRESIDENT

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Details
AGLC
Townsend's Bus Travel Pty Ltd t/as Townsend's Bus Travel [2015] FWCA 2691
Case
[2015] FWCA 2691
Decision Date

CaseChat Overview and Summary

The application before the Fair Work Commission concerned the approval of the Townsend's Bus Travel Drivers Enterprise Agreement 2015, which was lodged by Townsend's Bus Travel Pty Ltd trading as Townsend's Bus Travel. The dispute centred around the terms and conditions set out in the proposed agreement, which the applicant sought to implement for its drivers. The matter was heard in the Fair Work Commission, the tribunal tasked with overseeing and regulating workplace relations in Australia.

The primary legal issue before the Commission was whether the proposed enterprise agreement met the statutory requirements outlined in the Fair Work Act 2009, specifically sections 230 and 231, which mandate that agreements be fair and meet the "better off overall test" (BOOT). This test ensures that employees are not worse off financially under the new agreement compared to their existing conditions. The Commission needed to assess the fairness of various provisions in the agreement, including pay rates, entitlements, and working conditions, to determine if they complied with the statutory requirements.

In its decision, the Fair Work Commission found that the proposed enterprise agreement contained several provisions that did not meet the BOOT. Notably, the agreement proposed a reduction in certain allowances and benefits, which would result in some drivers being worse off financially. Despite the applicant's arguments for the benefits of the agreement, the Commission determined that the proposed changes did not sufficiently demonstrate that employees would be better off overall. Consequently, the Commission rejected the application for approval of the enterprise agreement, emphasising the importance of maintaining fair and just terms for all employees.

The Commission did not grant approval for the Townsend's Bus Travel Drivers Enterprise Agreement 2015, citing the failure to meet the BOOT. This decision underscores the importance of ensuring that any changes to employment conditions do not adversely affect employees' financial well-being and that all proposed agreements are thoroughly assessed against statutory requirements.

Orders

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Background

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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