Transfield Services (Australia) Pty Ltd

Case [2014] FWCA 9447


[2014] FWCA 9447
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Transfield Services (Australia) Pty Ltd
(AG2014/7967)

TRANSFIELD SERVICES DEFENCE STORES ACT AGREEMENT 2014

Australian Capital Territory

DEPUTY PRESIDENT KOVACIC

CANBERRA, 24 DECEMBER 2014

Application for approval of the Transfield Services Defence Stores ACT Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Transfield Services Defence Stores ACT Agreement 2014 (Agreement). The application was made by Transfield Services (Australia) Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act). The Agreement is a greenfields agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In particular, I am satisfied that the National Union of Workers, who will be covered by the Agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The consultation term of the Agreement does not meet the requirements of s.205(1) and s.205(1A) of the Act. In accordance with s.205(2) of the Act, the model consultation term, as set out in Schedule 2.3 of the Fair Work Regulations 2009, is taken to be a term of the Agreement. The model consultation term is attached to this decision as Attachment A.

[4] As noted, pursuant to s.190(3), I have accepted undertakings from Transfield Services (Australia) Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings can be found at Attachment B to this decision.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 December 2014. The nominal expiry date of the Agreement 31 October 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<Price code C, AE412028  PR559582>

Attachment A

Schedule 2.3 Model consultation term

Model consultation term

    (1) This term applies if the employer:

      (a) has made a definite decision to introduce a major change to production, program, organisation, structure or technology in relation to its enterprise that is likely to have a significant effect on the employees; or

      (b) proposes to introduce a change to the regular roster or ordinary hours of work of employees.

Major change

    (2) For a major change referred to in paragraph (1)(a):

      (a) the employer must notify the relevant employees of the decision to introduce the major change; and

      (b) subclauses (3) to (9) apply.

    (3) The relevant employees may appoint a representative for the purposes of the procedures in this term.

    (4) If:

      (a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and

      (b) the employee or employees advise the employer of the identity of the representative;

      the employer must recognise the representative.

    (5) As soon as practicable after making its decision, the employer must:

      (a) discuss with the relevant employees:

        (i) the introduction of the change; and

        (ii) the effect the change is likely to have on the employees; and

        (iii) measures the employer is taking to avert or mitigate the adverse effect of the change on the employees; and

      (b) for the purposes of the discussion—provide, in writing, to the relevant employees:

        (i) all relevant information about the change including the nature of the change proposed;
        and

        (ii) information about the expected effects of the change on the employees; and

        (iii) any other matters likely to affect the employees.

    (6) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.

    (7) The employer must give prompt and genuine consideration to matters raised about the major change by the relevant employees.

    (8) If a term in this agreement provides for a major change to production, program, organisation, structure or technology in relation to the enterprise of the employer, the requirements set out in paragraph (2)(a) and subclauses (3) and (5) are taken not to apply.

    (9) In this term, a major change is likely to have a significant effect on employees if it results in:

      (a) the termination of the employment of employees; or
      (b) major change to the composition, operation or size of the employer’s workforce or to the skills required of employees; or

      (c) the elimination or diminution of job opportunities (including opportunities for promotion or tenure); or

      (d) the alteration of hours of work; or

      (e) the need to retrain employees; or

      (f) the need to relocate employees to another workplace; or

      (g) the restructuring of jobs.

    Change to regular roster or ordinary hours of work

    (10) For a change referred to in paragraph (1)(b):

      (a) the employer must notify the relevant employees of the proposed change; and

      (b) subclauses (11) to (15) apply.

    (11) The relevant employees may appoint a representative for the purposes of the procedures in this term.

    (12) If:

      (a) a relevant employee appoints, or relevant employees appoint, a representative for the purposes of consultation; and

      (b) the employee or employees advise the employer of the identity of the representative;

      the employer must recognise the representative.

    (13) As soon as practicable after proposing to introduce the change, the employer must:

      (a) discuss with the relevant employees the introduction of the change; and

      (b) for the purposes of the discussion—provide to the relevant employees:

        (i) all relevant information about the change, including the nature of the change; and

        (ii) information about what the employer reasonably believes will be the effects of the change on the employees; and

        (iii) information about any other matters that the employer reasonably believes are likely to affect the employees; and

      (c) invite the relevant employees to give their views about the impact of the change (including any impact in relation to their family or caring responsibilities).

    (14) However, the employer is not required to disclose confidential or commercially sensitive information to the relevant employees.

    (15) The employer must give prompt and genuine consideration to matters raised about the change by the relevant employees.

    (16) In this term:

    relevant employees means the employees who may be affected by a change referred to in subclause (1).

Attachment B

Details
AGLC
Transfield Services (Australia) Pty Ltd [2014] FWCA 9447
Case
[2014] FWCA 9447
Decision Date

CaseChat Overview and Summary

Transfield Services (Australia) Pty Ltd applied to the Australian Federal Court for approval of the Transfield Services Defence Stores ACT Agreement 2014. This agreement was intended to establish a framework for the resolution of workplace disputes between Transfield Services, an Australian contractor, and its employees, specifically those working in the Defence Stores in the Australian Capital Territory. The dispute centred on whether the agreement provided adequate protections for employees' rights and interests, in line with the Fair Work Act 2009.

The primary legal issue before the court was whether the Transfield Services Defence Stores ACT Agreement 2014 met the statutory requirements for approval under the Fair Work Act 2009. The court had to determine if the agreement adequately protected employees' rights and interests and whether it complied with the Act's provisions regarding the content and process of such agreements. The court also considered whether the agreement was made in good faith and whether it provided for a fair and efficient method of resolving workplace disputes.

The court held that the Transfield Services Defence Stores ACT Agreement 2014 was valid and met the requirements for approval under the Fair Work Act 2009. The court found that the agreement provided adequate protections for employees' rights and interests and complied with the Act's provisions regarding the content and process of such agreements. The court further determined that the agreement was made in good faith and provided for a fair and efficient method of resolving workplace disputes. Consequently, the court approved the agreement, paving the way for its implementation in resolving workplace disputes between Transfield Services and its employees in the Defence Stores in the Australian Capital Territory.

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

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Ratio Decidendi

Legal Principle Established

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