[2014] FWCFB 7097
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.604 - Appeal of decisions

Transport Workers' Union of Australia
v
Jarman Ace Pty Ltd T/A Ace Buses
(C2014/4889)

VICE PRESIDENT CATANZARITI
JUSTICE BOULTON, SENIOR DEPUTY PRESIDENT
COMMISSIONER CAMBRIDGE

SYDNEY, 28 OCTOBER 2014

Appeal against decision [2014] FWCA 3338 of Deputy President Sams at Sydney on 23 May 2014 in matter number AG2014/5151.

[1] This is an appeal by the Transport Workers’ Union of Australia (the TWU) against a decision 1 (Decision) of Deputy President Sams in which the Deputy President approved an enterprise agreement known as the Ace Buses Enterprise Agreement 2014 (the Agreement).

[2] At the hearing of this appeal on 22 August 2014, the TWU sought permission to be represented by A Howell of Counsel. Jarman Ace Pty Ltd T/A Ace Buses (the Respondent) sought permission to be represented by A J Coulthard of Counsel. Permission was granted to both parties on the basis that we were satisfied that the subject matter of the appeal was sufficiently complex that allowing legal representation would enable the matter to be dealt with more efficiently.

Background

[3] The Agreement covers 69 casual employees engaged as bus drivers, bus supervisors or administration staff. The bus drivers transport physically and intellectually disabled school aged children between their homes and their schools. A bus supervisor is required to accompany each bus driver on every trip.

[4] The TWU opposed the application for approval of the Agreement at first instance on the basis that it did not satisfy the ‘better off overall test’ (the BOOT) for the purposes of s.193(1) of the Fair Work Act 2009 (the Act). It was accepted by both parties that the Passenger Vehicle Transportation Award 2010 [MA000063] (the Award) was a relevant reference instrument for the purposes of determining the BOOT.

[5] The nature of the work performed by the Respondent requires employees to perform split shifts; one shift in the morning to drive the children to school and one shift in the afternoon to drive the children home. The primary contention between the parties related to the issue of minimum engagement periods. Under the Agreement, it is the sum of the parts of a split shift that are utilised when calculating a minimum engagement period. For example, an employee who performs a split shift made up of two 25 minute parts is considered to have worked for a total of 50 minutes, and under the Agreement that employee would be entitled to two hours’ pay for the day. The TWU argued that under the Award, on its proper interpretation, employees in the same position would be considered to have been engaged twice, and would therefore be entitled to payment for two separate minimum engagements.

[6] The relevant parts of the Agreement are set out below:

[7] The Award deals with the minimum engagement of casuals in cl. 10.5(d) as follows:

[8] The Deputy President made the following findings in relation to the BOOT:

[9] The Deputy President continued to find that even if he were wrong about meeting the BOOT, he was satisfied that he would approve the Agreement pursuant to s.189 of the Act which allows the Fair Work Commission (the Commission) to approve an agreement if, due to ‘exceptional circumstances’, it would not be contrary to the public interest to do so.

[10] The Deputy President made the following findings in relation to this issue:

The appeal

[11] The TWU submits on appeal that the Deputy President erred in his consideration of the benefits said to flow from the Agreement. It is submitted that the Decision discloses error as the Deputy President took into account irrelevant matters and failed to adopt the correct approach in assessing whether the Agreement passed the BOOT, including by failing to apply the BOOT to the correct point in time. Further, it was submitted that the Deputy President erred in his application of s.189(2) of the Act in finding that exceptional circumstances existed such that the approval of the Agreement would not be contrary to the public interest despite it not satisfying the BOOT.

The BOOT

[12] The TWU submitted that there was ambiguity in the Decision as the Deputy President found that the interpretation of the Award was not “definitively settled” but did not explicitly reject the TWU’s interpretation of the Award. 4 The TWU contends that the Decision must be approached on the basis that the Deputy President accepted the interpretation of the Award put forward by the TWU and that this formed the basis of his application of the BOOT. While it is not explicitly stated in the Decision, it is clear that the Deputy President was of the view that even if he were to accept the TWU’s interpretation of the Award, he was still satisfied that the Agreement met the BOOT. Such an approach was open to the Deputy President, and we find no error in this respect.

[13] The TWU also submitted that the Deputy President was in error in relation to a number of benefits that he found to be relevant in applying the BOOT. These submissions will be dealt with individually below.

Employee’s commencing work from own home

[14] The TWU submits that the Deputy President was in error to consider that the fact that employees do not have to travel to a central depot was a benefit flowing from the Agreement as opposed to working under the Award. The TWU contends that this benefit is not related to the Agreement, but arises purely out of the manner in which the Respondent operates its business.

[15] The Respondent submits that this operational aspect of its business is “enshrined” in cl. 19 of the Agreement which provides as follows:

[16] The Respondent accepts that the language used is descriptive and not prescriptive, but asserts that it would be an overly prescriptive approach to the interpretation of the Agreement to conclude that the Respondent could, despite cl. 19, introduce a centralised depot and not be in breach of the Agreement. Despite this submission, the Respondent has provided an undertaking that it will not introduce a centralised depot for the life of the Agreement.

[17] We are satisfied that the benefits described in cl. 19 are benefits that flow from the Agreement and were properly taken into account by the Deputy President in his application of the BOOT. Despite the descriptive language, any change to the terms and conditions of employment as set out in cl. 19 would enliven a claim pursuant to cl. 6 of the Agreement which provides as follows:

[18] When considered contextually, it is clear that cl. 19 does provide a benefit to the Respondent’s employees. In light of this finding, there is no need to rely on any undertaking from the employer in relation to this aspect of the Agreement.

[19] The Respondent submitted at first instance that if it was forced to pay its employees for two hours for each part of the split shift performed it would review it operations and likely implement a centralised depot. The TWU now submits that this “threat” was of no relevance in applying the BOOT, as the BOOT requires a comparison of terms and conditions of employment at the time the test is applied rather than an assessment of the practices and working arrangements that may flow from the terms of a reference instrument. 5 While the TWU does not assert that the Deputy President made this error in his application of the BOOT, to avoid doubt, we find that the Deputy President made no such error in applying the BOOT.

Use of bus for personal purposes

[20] The Deputy President found that the ability of the drivers to use the bus for personal purposes with the permission of the Respondent was a benefit, albeit a “relatively modest one.” 6 Clause 19.13 of the Agreement, extracted above, provides that prior approval must be obtained in order to use a bus for private purposes but that “[g]enerally, the Directors will not deny the Bus Driver’s request.” The TWU argue that this provision provides no benefit to drivers as compared with the Award, as bus drivers are free to seek permission to use a bus for personal purposes under the Award (which is silent on the issue).

[21] We are not satisfied that the TWU has demonstrated an error on the Deputy President’s part in making this finding. Absent cl. 19.13 of the Agreement, the Respondent would be entitled to introduce a policy that prevented its employees from using the buses for personal purposes at all. While we agree with the Deputy President’s assessment that this is a “relatively modest” benefit, we are not satisfied that his Honour has made an error in considering this to be a benefit.

Drivers not required to work minimum engagement period

[22] The Deputy President found that it was a benefit to the employees that they were free to return home after they had finished their shift and were not required to work the balance of the minimum engagement period. The TWU submitted that this factor does not properly constitute a benefit under the Agreement, as the Award also provides for a minimum engagement period and does not require that the employee be directed to perform work for the full period of the engagement.

[23] When considered in context, however, it is clear that the reason employees are free to go directly home once they have finished working their shift and are not required to work the balance of the minimum engagement period is a consequence of the various terms and conditions specified in cll. 19 and 12 of the Agreement. We are not satisfied that the Deputy President has made an error in this finding.

Mobile phones

[24] The Deputy President found that it was a benefit to the employees that they were provided with mobile phones and were entitled to keep those phones if the company replaced them. The TWU did not submit that the Deputy President made an error in this finding but submitted that this benefit is negligible at best. Even were we to accept the TWU’s submissions on this point, it would not be of any benefit in determining whether or not the TWU’s appeal should be allowed. We find that this factor is an irrelevant consideration for present purposes.

Bus supervisors

[25] The TWU asserts that the Deputy President appears to have disregarded the position of bus supervisors in his assessment of the non-monetary benefits associated with the Agreement. The TWU asserts that bus supervisors do not obtain any benefit from arrangements permitting drivers to commence their shift from their place of residence or from the possibility of personal use of a bus and are not provided with a mobile phone. It is asserted that the Deputy President erred by failing to separately consider whether the bus supervisors were better off overall under the Agreement, on the basis that it was the non-monetary benefits that were considered to outweigh the detrimental provision relating to minimum engagements.

[26] The Respondent submitted that while the Deputy President did not deal separately with the position of the bus supervisors, it is clear throughout the Decision that the Deputy President considered their position and that the conditions for supervisors are separately dealt with in cll. 12 and 19 of the Agreement. The Respondent further submitted that of the 26 employees who work for Education Queensland, and therefore have the benefit of being able to leave the bus at their workplace for the duration of the day and to utilise it to return home, 16 are bus supervisors.

[27] We are satisfied that the Deputy President took into account the position of the bus supervisors in coming to his decision on the BOOT. The Deputy President noted in his Decision that under the Agreement bus supervisors are paid at a rate 0.5% higher than the Award. The Deputy President also makes explicit reference to bus supervisors in considering the position of employees with respect to the Agreement’s split shift provisions. It is also clear that there would be benefits for bus supervisors as well as drivers in the arrangements regarding how time worked is calculated under the Agreement. In these circumstances, we can see no appealable error in the Deputy President’s approach.

Conclusion

[28] The application of the BOOT is a matter that involves the exercise of discretion, and it involves a degree of subjectivity or value judgement. 7 Whether this Full Bench would have come to a different conclusion is not relevant. The issue before us is whether the Deputy President made an error of the kind described in House v The King8 in making his decision. We are not satisfied that any such error was made in the Deputy President’s application of the BOOT.

Approval of the Agreement pursuant to s.189

[29] Even if it was determined that the BOOT was not met, we are nonetheless satisfied that the Deputy President did not err in finding that the Agreement could otherwise be approved in accordance with s.189(2) of the Act.

[30] Section 189 of the Act provides as follows:

[31] The TWU’s submissions can be summarised as follows:

[32] In relation to whether the exceptional circumstances identified by the Deputy President were logically connected with the public interest, we are satisfied that the Deputy President adequately drew this connection. The Deputy President explicitly explained this logical connection by stating that “[the Respondent] has specifically structured its business in this way to take account of the important service it provides in transporting physically and mentally disabled schoolchildren to and from their school with the minimum of inconvenience to them and their families.” 9 We are satisfied that the Deputy President adequately explained the logical connection between the exceptional circumstances identified by the Deputy President and the public interest.

[33] Further, while the Deputy President did not explicitly refer to the public interest in maintaining a level playing field among employees in a particularly industry or sector, we are not satisfied that he was required to do so in the circumstances. In Re Jellifish! Pty Ltd, 10 (Re Jellifish!) Asbury C (as she then was) said:

[34] Section 189 of the Act requires a decision-maker to make a discretionary decision in determining if he or she is satisfied that, because of exceptional circumstances, the approval of the agreement would not be contrary to the public interest. In these circumstances, we may only interfere where an error of the kind in House v The King 12 is established. In House v The King the majority of the High Court said:

[35] We are not satisfied that the Deputy President has improperly exercised his discretion in determining that, because of exceptional circumstances, the approval of the agreement would not be contrary to the public interest. The factors that Asbury C identified in Re Jellifish! are matters that could be taken into account when considering whether or not the Commission should utilise its discretion to approve an agreement in accordance with s.189 of the Act. There is, however, no obligation for a decision-maker to expressly refer to each of the factors identified by Asbury C. We are satisfied that the Deputy President properly exercised his discretion in identifying relevant exceptional circumstances and proceeding to find that it was not contrary to the public interest for the Agreement to be approved.

Conclusion

[36] The Commission must grant permission to appeal if it is satisfied it is in the public interest to do so. 14 In GlaxoSmithKline Australia Pty Ltd v Colin Makin,15 a Full Bench summarised the concept of public interest in the following terms:

[37] We do not consider that the TWU has demonstrated that it is in the public interest to grant it permission to appeal the Deputy President’s Decision.

[38] As the Deputy President was not in error, the first instance Decision does not manifest any injustice, nor does the Deputy President’s Decision warrant revisiting. Permission to appeal is refused.


VICE PRESIDENT

Appearances:

A Howell of Counsel for the Transport Workers’ Union of Australia.

A J Coulthard of Counsel for Jarman Ace Pty Ltd T/A Ace Buses.

Hearing details:

2014.

Sydney and Brisbane (video hearing):

August 22.

 1   Jarman Ace Pty Ltd t/as Ace Buses [2014] FWCA 3338.

 2   Ibid [30]-[34].

 3   Ibid [38]-[40].

 4   Ibid [33].

 5   Top End Consulting Pty Ltd [2010] FWA 6442, [27]-[28].

 6   Jarman Ace Pty Ltd t/as Ace Buses [2014] FWCA 3338, [30].

 7   ALDI Foods Pty Ltd v Transport Workers' Union of Australia (2012) 227 IR 120, 123–4.

 8   (1936) 55 CLR 499, 505.

 9   Jarman Ace Pty Ltd t/as Ace Buses [2014] FWCA 3338, [38].

 10   (2012) 227 IR 372.

 11   Re Jellifish! Pty Ltd (2012) 227 IR 372, 392.

 12   (1936) 55 CLR 499.

 13   House v The King (1936) 55 CLR 499, 404–405.

 14   Fair Work Act 2009, s.604(2).

 15   [2010] FWAFB 5343 at [27].

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