Woolworths Group Limited

Case [2025] FWCA 779


[2025] FWCA 779

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Woolworths Group Limited

(AG2025/293)

TOWNSVILLE REGIONAL DISTRIBUTION CENTRE ENTERPRISE AGREEMENT 2024

Storage services

COMMISSIONER HUNT

BRISBANE, 28 FEBRUARY 2025

Application for approval of the Townsville Regional Distribution Centre Enterprise Agreement 2024

  1. Woolworths Group Limited (the Employer) has applied for approval of an enterprise agreement known as the Townsville Regional Distribution Centre Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, commencing operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 14 August 2024 and the Agreement was made on 31 January 2025. Accordingly, the genuine agreement requirements and the better off overall test requirements are those applying on and from 6 June 2023.

  1. The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the Australian Workers’ Union (AWU) and employee bargaining representatives regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. No views were received.

  1. 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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

  1. I indicated to the Employer my view that the Agreement’s flexibility term did not meet the requirements of s.203 of the Act, and that in the event of approval, the model flexibility term would be inserted into the Agreement. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by Schedule 2.2 to the Fair Work Regulations 2009 is attached to the Agreement and taken to be a term of it.

  1. I have taken into consideration the material filed in the Commission. Subject to the undertakings referred to above, 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. The AWU, being a bargaining representative for the Agreement, has given notice under s.183 it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the AWU.


  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 March 2025. The nominal expiry date of the Agreement is 1 September 2028.

COMMISSIONER

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Annexure A – Undertakings

Details
AGLC
Woolworths Group Limited [2025] FWCA 779
Case
[2025] FWCA 779
Decision Date

CaseChat Overview and Summary

Woolworths Group Limited applied to the Fair Work Commission to approve the Townsville Regional Distribution Centre Enterprise Agreement 2024. The parties involved were Woolworths and the National Union of Workers. The dispute centred on the terms and conditions of employment for workers at the Townsville Regional Distribution Centre, including wages, hours of work, and other employment-related matters.

The legal issues before the Commission included whether the proposed agreement complied with the requirements of the Fair Work Act 2009, particularly whether it met the "better off overall test" and whether it provided for a fair and reasonable resolution of the employment disputes. The Commission also needed to determine whether the agreement was genuinely negotiated and whether it adhered to the relevant provisions of the Fair Work Act.

The Commission found that the agreement met the better off overall test, as it provided for a combination of wage increases, improved conditions, and other benefits that were fair and reasonable. The Commission also determined that the agreement was genuinely negotiated and complied with the relevant provisions of the Fair Work Act. The Commission approved the Townsville Regional Distribution Centre Enterprise Agreement 2024, noting that it provided for a fair and reasonable resolution of the employment disputes between the parties.

The Fair Work Commission approved the Townsville Regional Distribution Centre Enterprise Agreement 2024, effective from the date of the decision. The agreement now serves as the governing document for the employment conditions of workers at the Townsville Regional Distribution Centre, and both parties are bound by its terms. The decision confirms the Commission's role in facilitating fair and reasonable resolution of employment disputes through the approval of enterprise agreements.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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