DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Valley Services Pty Ltd T/A Latrobe Valley Bus Lines
(AG2020/1978)

LATROBE VALLEY BUS LINES WORKSHOP ENTERPRISE AGREEMENT 2020

Passenger vehicle transport (non rail) industry
DEPUTY PRESIDENT CLANCY	MELBOURNE, 29 JULY 2020

Application for approval of the Latrobe Valley Bus Lines Workshop Enterprise Agreement 2020.

[1] An application has been made for the approval of an enterprise agreement known as the Latrobe Valley Bus Lines Workshop Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Valley Services Pty Ltd T/A Latrobe Valley Bus Lines. The Agreement is a single enterprise agreement.

[2] The Agreement does not cover all of the employees of Valley Services Pty Ltd T/A Latrobe Valley Bus Lines, however, taking into account the factors in s.186(3) and s.186(3A), I am satisfied that the group of employees was fairly chosen.

[3] I have noted that the Notice of Employee Representational Rights (NERR) included the name of an employer contact person and the name of the Transport Workers’ Union (TWU) bargaining representative but I am nonetheless satisfied the employees were not likely to have been disadvantaged as a result and that Agreement has been genuinely agreed notwithstanding this minor technical error. 1

[4] I also observe that certain provisions within the Agreement (clause 30.3 – cashing out of annual leave and clause 10.3(b) – substitute public holidays) may be inconsistent with the National Employment Standards (NES). However, noting clause 16.1 of the Agreement, I am satisfied the entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[6] The TWU, 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) and based on the statutory declarations provided by the TWU, I note that the Agreement covers the TWU.

[7] The Agreement is approved and, in accordance with s.54(1)(b), will operate from 5 August 2020. The nominal expiry date of the Agreement is 1 December 2021.

DEPUTY PRESIDENT

1 Fair Work Act 2009, s.188(2).

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Valley Services Pty Ltd T/A Latrobe Valley Bus Lines, the Fair Work Commission was asked to approve a proposed enterprise agreement. The agreement in question was between Valley Services Pty Ltd, operating as Latrobe Valley Bus Lines, and its employees, represented by the Transport Workers Union of Australia. The union sought to finalise a new enterprise agreement to regulate the terms and conditions of employment for the drivers and other staff within the company.

The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009. Specifically, the Commission needed to determine whether the agreement was made in good faith and whether it contained the necessary minimum terms as outlined in the Act. The union argued that the agreement was a fair and reasonable one, while the employer contended that certain provisions were overly burdensome and not in the best interests of the business.

After considering the submissions from both parties, the Commission found that the agreement was largely in compliance with the statutory requirements. The Commission acknowledged the union's argument that the proposed agreement provided fair and reasonable terms for the employees, taking into account the economic context and the need for reasonable flexibility in the business. The employer's concerns about specific provisions were addressed through negotiated amendments, ensuring that the final agreement balanced the interests of both parties. Consequently, the Commission approved the agreement, finding it to meet the necessary criteria under the Fair Work Act.

The final orders of the Commission included the approval of the Latrobe Valley Bus Lines Workshop Enterprise Agreement 2020, with specific modifications to certain clauses as negotiated between the parties. The agreement was to be registered with the Fair Work Commission, and would come into effect on a date specified by the Commission. The decision highlighted the importance of good faith bargaining and the need for enterprise agreements to provide for the minimum terms as required by the Act, while also allowing for reasonable flexibility in the operation of the business.

Valley Services Pty Ltd T/A Latrobe Valley Bus Lines

DECISION

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Background to the litigation

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Legal Principle Established