UR1 International Pty Ltd

[2024] FWCFB 163 [Note: A copy of the zombie agreement to which this decision relates AC846219 & AC836527 is available on our website.]

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

UR1 International Pty Ltd

(AG2023/4793 and AG2024/4794)

UR1 INTERNATIONAL PTY LTD (WAREHOUSE & ASSEMBLY) CERTIFIED AGREEMENT (2005)
[AC846219]

UR1 INTERNATIONAL PTY LTD CERTIFIED AGREEMENT 2004
[AC836527]

Storage services and clerical industry
DEPUTY PRESIDENT SLEVIN DPEUTY PRESIDENT GRAYSON COMMISSIONER THORNTON	SYDNEY, 19 MARCH 2024

Application to extend the default period for the UR1 International Pty Ltd (Warehouse & Assembly) Certified Agreement (2005) and the UR1 International Pty Ltd Certified Agreement 2004

UR1 International Pty Ltd has applied pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), to extend the UR1 International Pty Ltd (Warehouse & Assembly) Certified Agreement (2005) and the UR1 International Pty Ltd Certified Agreement 2004 (the Agreements).

The applications are made in accordance with subitem 20A(6)(a) on the grounds that bargaining is occurring for a proposed enterprise agreement that will cover the same, or substantially the same, group of employees as are covered by the Agreements and that it is appropriate to extend the default period.

The Full Bench in ISS Health Services Pty Ltd[1] described the requirements that must be met for an application to extend the default period where bargaining for a replacement agreement is made.

The Notice of Employee Representational Rights (NERR) was issued to employees in respect of the UR1 International Pty Ltd Agreement on 30 November 2023 and 1 December 2023 for the Warehouse and Assembly Agreement. The applicant notified its employees that it intends to replace both of the subject agreements with one replacement agreement. The Applicant has advised the Commission that they expect the bargaining to be completed by March 2024 with a vote to occur thereafter.

We are satisfied on the material provided that the requirements in subitem (6)(a) are met and that it is appropriate to extend the default period. We consider that an extension until 6 June 2024 is sufficient time for a replacement agreement to be made and approved.

Pursuant to item 20A(6) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), we order that the default period for the Agreements is extended until 6 June 2024.

The Agreements are published, in accordance with subitem 20A(10A)(c), on the Fair Work Commission’s website.

DEPUTY PRESIDENT

[1] [2023] FWCFB 122.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, UR1 International Pty Ltd, sought an extension of the default period for two certified agreements: the UR1 International Pty Ltd (Warehouse & Assembly) Certified Agreement (2005) and the UR1 International Pty Ltd Certified Agreement 2004. The matter was heard by the Fair Work Commission, with Deputy President Slevin, Deputy President Grayson, and Commissioner Thornton. The applicant aimed to extend the default period as it was in the process of negotiating a new enterprise agreement that would cover the same group of employees as those covered by the existing agreements.

The legal issue before the Full Bench was whether the applicant met the criteria to extend the default period of the existing agreements under subitem 20A(4) of Schedule 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. This required the Commission to consider if bargaining for a replacement agreement was occurring and if it was appropriate to extend the default period. The Full Bench previously outlined the requirements in ISS Health Services Pty Ltd for such an application to succeed. The applicant provided evidence that it had issued a Notice of Employee Representational Rights to its employees and intended to replace the existing agreements with a single replacement agreement. The applicant also informed the Commission that bargaining was expected to be completed by March 2024, with a subsequent vote.

The Full Bench determined that the applicant had satisfied the criteria for an extension of the default period. They noted that the Notice of Employee Representational Rights was issued in late November and early December 2023, and the applicant had notified its employees of its intention to replace the existing agreements with a new one. The Full Bench found it appropriate to extend the default period to allow sufficient time for the negotiation and approval of the new agreement. Consequently, they ordered that the default period for the agreements be extended until 6 June 2024, with the agreements to be published on the Fair Work Commission's website in accordance with the Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established