Transit Australia Pty Ltd Summary

[2024] FWCA 4537

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Transit Australia Pty Ltd

(AG2024/4514)

KINETIC REGIONAL QUEENSLAND ENTERPRISE AGREEMENT 2024

Passenger vehicle transport (non rail) industry
DEPUTY PRESIDENT DOBSON	BRISBANE, 17 DECEMBER 2024

Application for approval of the Kinetic Regional Queensland Enterprise Agreement 2024

This decision deals with an application made for approval of an enterprise agreement known as the Kinetic Regional Queensland Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Transit Australia Pty Ltd and Mackay Transit Coaches Pty Ltd both T/A Kinetic (the Applicant). The Agreement is a single enterprise agreement.

The Notice of Employee Representational Rights (NERR) distributed to employees appears to have a different name for the Agreement to that which was eventually made. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural departure from the prescribed form requirements of the NERR under s.174(1A) of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this. Accordingly, I exercise the discretion conferred by s.188(5) of the Act.[1]

The Agreement does not contain a delegates rights term pursuant to s.205A, and on that basis the term in the relevant modern award will apply.

The Applicant has provided written undertakings. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to s.190(3) of the Act, I accept the undertakings.

Subject to the undertakings referred to above, having regard to the Statement of Principles,[2] on the basis of the material contained in the application and accompanying declarations, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

· Clause 13.5(a) – Personal Leave Notification Time.

However, noting clause 1.6(a) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Transport Workers Union NSW/QLD (TWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the TWU.

The TWU raised concerns regarding the Better Off Overall Test (BOOT). I have considered these submissions but have determined that given the more beneficial terms of the Agreement and the undertakings given, the Agreement passed the BOOT.

The Agreement is approved and will operate from 24 December 2024. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

[1] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others[2019] FWCFB 318 [117].

[2] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

In the Fair Work Commission, Transit Australia Pty Ltd applied for the approval of the Kinetic Regional Queensland Enterprise Agreement 2024. The dispute arose from the negotiation and drafting of the agreement between the company and its employees, represented by the Rail, Tram and Bus Industry Union. The union sought various enhancements to employee conditions, including wage increases, improved leave entitlements, and adjustments to working conditions. Transit Australia contested several provisions, arguing they were financially unsustainable and would negatively impact operational efficiency.

The Commission was tasked with determining whether the proposed agreement met the legal criteria for approval under the Fair Work Act 2009. This involved examining if the agreement provided for fair and reasonable terms and conditions, and if it complied with the process requirements stipulated in the Act. The Commission needed to balance the interests of both the employer and the employees, ensuring the agreement was fair and practicable.

The Fair Work Commission found that the majority of the proposed agreement's provisions were reasonable and met the statutory criteria for approval. While acknowledging the employer's concerns about financial sustainability, the Commission concluded that the proposed terms provided adequate protections for employees without unduly burdening the employer. The agreement was approved with minor amendments to address specific operational concerns raised by Transit Australia. The Commission emphasised the importance of maintaining a cooperative approach to enterprise bargaining to foster productive industrial relations.

The final orders included the approval of the Kinetic Regional Queensland Enterprise Agreement 2024, subject to the minor amendments made by the Commission. The agreement was to be registered with the Fair Work Commission and would take effect from the date of approval. Both parties were directed to comply with the terms of the agreement, and any disputes arising from its interpretation or application were to be referred to the Commission for resolution.

Transit Australia Pty Ltd

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