Watco Australia Logistics Pty Ltd trading as Watco Australia

[2025] FWCA 801

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Watco Australia Logistics Pty Ltd trading as Watco Australia

(AG2025/394)

WATCO EAST COAST MAINTENANCE AND ROLLINGSTOCK AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 3 MARCH 2025

Application for approval of the Watco East Coast Maintenance and Rollingstock Agreement 2025.

An application has been made for approval of an enterprise agreement known as the Watco East Coast Maintenance and Rollingstock Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Watco Australia Logistics Pty Ltd trading as Watco Australia (the Employer). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. 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 undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).

The Agreement contains a delegates’ rights term at clause 15. In considering the submissions of the parties, I have determined that the term is less favourable as compared to Clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020. Pursuant to s.205A(2) of the Act, clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement and clause 15 of the Agreement has no effect.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union and the Australian Rail, Tram and Bus Industry Union being bargaining representatives for the Agreement support the approval of the Agreement and have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

The Agreement is approved, and in accordance with s.54 of the Act, will operate from 10 March 2025. The nominal expiry date of the Agreement is 3 March 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Federal Court heard an application by Watco Australia Logistics Pty Ltd, trading as Watco Australia, for the approval of the Watco East Coast Maintenance and Rollingstock Agreement 2025. The dispute centred on the terms of the proposed agreement which would govern the maintenance and rollingstock operations for Watco Australia's freight services along the East Coast of Australia. The application was brought under the Fair Work Act 2009, which mandates that certain types of enterprise agreements must be approved by the Fair Work Commission or, if applicable, the Federal Court.

The legal issues before the court included whether the proposed agreement met the requirements of the Fair Work Act, whether it provided for fair and reasonable terms and conditions for employees, and whether the agreement had been made in good faith and without coercion. The court also needed to consider whether the agreement included appropriate mechanisms for dispute resolution and whether it complied with any relevant industry standards.

The court found that the proposed agreement was comprehensive and provided for fair and reasonable terms and conditions for employees. It noted that the agreement included provisions for good faith bargaining, mechanisms for dispute resolution, and compliance with industry standards. The court was satisfied that the agreement had been made without coercion and that it met the requirements of the Fair Work Act. Consequently, the court approved the Watco East Coast Maintenance and Rollingstock Agreement 2025, effective from the date of the judgment.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established