Fair Work Act 2009

s.306E - Application for a regulated labour hire arrangement order

Application by Shop, Distributive and Allied Employees Association re Primary Connect

Application for a regulated labour hire arrangement order in respect of Ready Workforce (A Division of Chandler Macleod) Pty Ltd in relation to work performed for Woolworths Pty Ltd t/a Primary Connect.

1. The Shop, Distributive and Allied Employees Association (SDA) has applied under s 306E of the Fair Work Act 2009 (Cth) (FW Act) for a regulated labour hire arrangement order to apply to Woolworths Pty Ltd, trading as Primary Connect (Primary Connect) as the regulated host and Ready Workforce (A Division of Chandler Macleod) Pty Ltd (Ready Workforce) as the employer. The application as originally lodged also named Philip Leong Stores Pty Ltd, also trading as Primary Connect, as a second regulated host. The proposed order would apply to employees of Ready Workforce who perform work as storeworkers for Primary Connect engaged within its Melbourne National Distribution Centre (Distribution Centre). The covered employment instrument is the Melbourne National Distribution Centre Enterprise Agreement 2022[1] (Agreement).

• [2] On 13 June 2025, both Ready Workforce and Primary Connect filed Form F86A responses to the application. The responses indicated that neither entity objected to the application. However, in response to the question about 'other matters that the Person Responding believes the Commission should consider before deciding whether or not to make the Proposed Order', both responses also contained information regarding which periods of service by the employees proposed to be covered by the order should be taken into account when determining whether they progress from level 1 to level 2 in the classifications in the Agreement (Service Issue). No other person has indicated an interest in the application.

• [3] On 24 June 2025, I held a directions hearing in relation to the application. The outcomes of that proceeding were that:

(1) I granted the SDA's request made during the proceeding to amend its application to remove Philip Leong Stores Pty Ltd as a named regulated host; and

(2) the parties would attempt to reach a common understanding regarding the Service Issue, then report back to my chambers in writing.

• [4] On 15 July 2025, the SDA, on behalf of all parties to the application, advised my chambers as follows:

The parties involved, namely the SDA and Woolworths, have been in ongoing discussions and have reached the following understandings:

1. Consent to Order: Both parties have agreed to consent to the order being made in accordance with section 306E of the Act.
2. Service Recognition: There is a consensus that any service performed by labour hire staff, whilst engaged at the MNDC by Chandler MacLeod Group, prior to the order being made will be recognized and will count towards progression through the classifications as outlined in the Melbourne National Distribution Centre Enterprise Agreement 2022 (the Agreement).
3. Back payment: Woolworths and the labour hire agency acknowledge that they may not be prepared to pay the protected rate of pay (PROP) on the day the decision is made and request the order be made in 4 - 6 weeks to facilitate this transition. However, they commit to ensuring that back payment is made to the date of the decision. This will also allow time for the SDA to seek advice on several outstanding clauses, where their position is different from Woolworths.
4. Non-Alignment on Other Entitlements: While there is agreement on the above points, there remains non-alignment on a small number of entitlements within the Agreement and whether they are included in the PROP. Should these issues become active, the SDA intends to address them through the dispute resolution procedure outlined in section 306P of the Act.

• [5] On 30 July 2025, Ready Workforce and Primary Connect confirmed in writing that they consented to the Commission making the order the SDA sought. Ready Workforce added that its consent was 'subject to the understandings [in the SDA's email] of Tuesday 15 July'.

• [6] On the basis of the application and the responses, I make the following findings:

(1) Ready Workforce has no embedded supervisory or management capacity at the Distribution Centre. Supervisory or management employees of Ready Workforce have very limited involvement in matters relating to the performance of work.

(2) Ready Workforce's employees who perform work at the Distribution Centre (Regulated Employees) are wholly integrated into Primary Connect's operations. The Regulated Employees are:

• required to undertake Primary Connect's induction at the commencement of their employment at the Distribution Centre. The induction is carried out by Primary Connect and includes provision of Primary Connect's policies and procedures with which the Regulated Employees are required to comply, and training days conducted by Primary Connect prior to commencing independent work in the Distribution Centre;
• allocated into section teams by Primary Connect and report to Primary Connect's team leaders/supervisors, who allocate them duties and give them instructions and directions with which they are required to comply;
• given directions as to picking orders via Primary Connect's headsets and utilising its picking directory technology;
• required to attend team talks (toolbox talks) convened by Primary Connect's team leaders/supervisors (alongside employees of Primary Connect); and
• required to undertake ongoing training which is arranged and conducted by Primary Connect, including policy or procedure updates rolled out by Primary Connect at team talks (toolbox talks).

(3) Ready Workforce has a limited role in directing, supervising or controlling the Regulated Employees when they perform work for Primary Connect.

(4) In relation to when the work is performed, the Regulated Employees:

• are rostered for work by Primary Connect through the provision of roster details provided to Ready Workforce;
• take breaks (within their teams) at Primary Connect's direction (and at the same times and in the same break room as Primary Connect's direct employees); and
• make requests for leave or time off work through Ready Workforce in collaboration with Primary Connect and are required to notify Primary Connect if they will be absent from work due to illness through Ready Workforce.

(5) The Regulated Employees exclusively utilise Primary Connect's systems, plant and equipment in the course of their employment including (and without limitation) manual handling equipment, headsets and forklifts.

(6) The Regulated Employees do not utilise Ready Workforce's systems, plant or equipment when carrying out duties in the Distribution Centre.

1. The Regulated Employees are employed by Ready Workforce in accordance with the Storage Services and Wholesale Award 2020[2] and perform duties within the classifications in that award.

(8) The Regulated Employees work alongside and perform the same duties as Primary Connect's direct employees who are employed pursuant to the Agreement, including but not limited to:

• picking and packing/assembly of orders;
• replenishment of pick slots,
• cleaning duties;
• operation of manual handling equipment;
• loading and unloading trucks;
• receiving goods,
• dispatching goods; and
• operating forklifts.

(9) The duties performed by the Regulated Employees cannot be said to be specialist or expert in nature in circumstances where they are substantially the same as the duties performed by Primary Connect's direct employees.

(10) The placement of the Regulated Employees with Primary Connect is not for a defined purpose or defined task (or purposes or tasks) which differ from the duties or functions performed by Primary Connect's direct employees under the Agreement.

(11) The placement of the Regulated Employees with Primary Connect is not subject to any defined temporal limitation.

• [7] In Application by the Mining and Energy Union,[3] a Full Bench of the Commission outlined a number of principles concerning the proper interpretation and application of s 306E.[4] I apply, but do not repeat, the principles stated in that decision.

• [8] The parties agree, and I am satisfied, for the purposes of s 306E(7) of the FW Act, that the SDA is an organisation entitled to represent the industrial interests of employees of Ready Workforce who perform work as storeworkers at the Distribution Centre. Accordingly, the SDA is entitled to apply for a regulated labour hire arrangement order under s 306E of the FW Act by operation of s 306E(7)(c).

• [9] I am likewise satisfied that the requirements of s 306E(1) of the FW Act, which must be satisfied in order to enliven the obligation to make a regulated labour hire arrangement order, are met. Specifically, on the evidence before me, I am satisfied that:

(a) Ready Workforce provides its employees to perform work as storeworkers for Primary Connect at the Distribution Centre.

(b) The Agreement would apply to Ready Workforce's employees who perform work for Primary Connect at the Distribution Centre if Primary Connect were to employ these employees directly to undertake the same kind of work.

(c) Primary Connect is not a small business employer.

• [10] For the purposes of s 306E(1A) of the FW Act, I am satisfied that the performance of work is not and will not be for the provision of a service, rather than the supply of labour. In forming this view, I have had regard to the matters set out in subsection (7A). In relation to the matters set out in s 306E(7A), I make the following findings:

(a) There is no evidence that Ready Workforce is involved in matters relating to the Regulated Employees' performance of work at the Distribution Centre.

(b) Rather, the evidence demonstrates that Primary Connect directs, supervises, controls and assigns work to the Regulated Employees.

(c) The Regulated Employees receive the same induction and training as direct Primary Connect employees from Primary Connect employees and work within Primary Connect's policies and procedures at the Distribution Centre. They use systems and operate equipment belonging to Primary Connect.

(d) There is no evidence that Ready Workforce is or will be subject to industry or professional standards or responsibilities in relation to the work of the Regulated Employees.

(e) The work undertaken by the Regulated Employees at the Distribution Centre involves the operation of equipment within Primary Connect's systems, but does not involve work of a specialist or professional nature.

• [11] In relation to s 306E(2) of the FW Act, I am not satisfied that it is not fair and reasonable in all the circumstances to make a regulated labour hire arrangement order as sought by the SDA. Section 306E(2) requires the Commission to have regard to the matters listed in subsection (8) in relation to which submissions have been made. In this case, no submissions were made in relation to any of the matters listed in subsection (8). Accordingly, I am not required to have regard to those matters.

• [12] In those circumstances, I am required by s 306E of the FW Act to make the regulated labour hire arrangement order sought by the SDA. I will publish the order together with this decision, setting out the matters specified in s 306E(9) of the FW Act. The operative date of the order will be Friday 3 October 2025, consistent with s 306E(9)(e)(ii) and as agreed by the parties.

S Kemppi, counsel, for the Shop, Distributive and Allied Employees Association.

S Willett and J Elias for Ready Workforce (A Division of Chandler Macleod) Pty Ltd.

L Geiger for Woolworths Pty Ltd t/a Primary Connect.

1. [1]AE519559.
2. [2]MA000084.
3. [3] [2024] FWCFB 299, 333 IR 249.
4. [4]Ibid [8]-[17].

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