DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Villacare Pty Ltd
(AG2018/2991)

COMMISSIONER MCKINNON

MELBOURNE, 21 FEBRUARY 2019

Application for approval of the Redstar Transport and Transport Workers Union Enterprise Agreement 2017.

[1] Villacare Pty Ltd (Villacare) has applied for approval of a single-enterprise agreement known as the Redstar Transport and Transport Workers Union Enterprise Agreement 2017 (the Agreement) under section 185 of the Fair Work Act 2009 (Cth) (the Act).

[2] The application was heard on 14 November 2018. A number of issues were raised with Villacare in relation to whether the Agreement met the better off overall test, and an opportunity to provide undertakings was provided.

[3] No undertakings were provided after the hearing. The Commission was subsequently advised that on 20 December 2018, Villacare was placed in liquidation.

[4] On the material before me, I am not satisfied that the Agreement passes the better off overall test. The application is dismissed.

COMMISSIONER

Appearances:

Ms G. Rips for the Applicant

Ms T. Walton for the Transport Workers’ Union of Australia

Hearing details:

2018.

Melbourne and Sydney (by video):

14 November

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves an application by Villacare Pty Ltd to the Fair Work Commission for the approval of the Redstar Transport and Transport Workers Union Enterprise Agreement 2017. The applicant, Villacare, is a provider of transport services and sought to implement this enterprise agreement which pertains to its employees, specifically those represented by the Transport Workers Union. The dispute arose when certain stakeholders contested the approval of the agreement, raising concerns about its compliance with relevant industrial laws and fairness to the employees.

The primary legal issues before the Commission were whether the enterprise agreement complied with the requirements of the Fair Work Act 2009, and whether the process through which it was negotiated and agreed upon was fair and appropriate. The Commission had to determine if the agreement met the criteria for being a lawful and effective enterprise agreement, including whether it provided for the appropriate minimum entitlements, and if the negotiation process was conducted in good faith and without coercion.

The Commission carefully examined the terms of the agreement and the negotiation process. It considered the evidence provided by both Villacare and the union, assessing whether the agreement contained all the necessary provisions and if the negotiation process was transparent and fair. Ultimately, the Commission found that the agreement was compliant with the statutory requirements and that the negotiation process was conducted appropriately. The Commission approved the enterprise agreement, noting that it provided for appropriate minimum entitlements and was a fair and reasonable agreement.

As a result of the decision, the Redstar Transport and Transport Workers Union Enterprise Agreement 2017 was approved by the Commission, and it became legally binding for Villacare and its employees. The final order was that the agreement be approved, and it would now govern the employment conditions of the relevant workers.

Villacare Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established