Qube Logistics (Rail) Pty Ltd v Australian Rail, Tram and Bus Industry Union
Citation: [2021] FCAFC 83
At a glance
- Employees affected
- 32
What happened
Qube acquired operations that were subject to the Independent Railways of Australia Enterprise Agreement 2011, which covered approximately 32 employees. The agreement had a nominal expiry date of 1 April 2014. Clause 5 stated that in the absence of re-negotiation, the last increase detailed in the remuneration clause would be the agreed increase for each anniversary thereafter. Qube refused to pay the annual 3% wage increases for the years ending April 2014 and April 2015, contending that negotiations had commenced so the 're-negotiation' condition was not met.
What was decided
The court upheld the union's interpretation that 're-negotiation' referred to the completion of a negotiated agreement, not merely the commencement of negotiations. Employees were entitled to the annual 3% wage increases on 1 April 2014 and 1 April 2015 while negotiations for a replacement agreement continued. Qube was ordered to pay the unpaid amounts to 32 employees with interest. No pecuniary penalties were imposed.
What it means for employers
When an enterprise agreement continues beyond its nominal expiry date, terms providing for wage increases 'in the absence of re-negotiation' will be interpreted to mean until a replacement agreement is actually reached, not merely until negotiations begin. Employers cannot use the existence of ongoing negotiations to avoid paying contractual increases.
What it means for employees
Employees are entitled to rely on enterprise agreement wage increase provisions during periods when negotiations for a replacement agreement are underway. Wage increases do not cease simply because the employer and union have started discussions about a new agreement. Employees can pursue unpaid amounts through the court.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2021/2021fcafc0083Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →