[2025] FWC 1283
General information, not legal advice.
Fair Work Commission
2025-05-08
Original judgment source is linked above.
s.234 - Application for an intractable bargaining declaration
Qube Logistics (Rail) Pty Ltd Trading AS Qube Logistics
Application for an intractable bargaining declaration
Upon incorporating Award terms into the Agreement, the incorporated Award terms are to be read as altered with the appropriate changes to make them provisions of the Agreement rather than provisions of the Award. So, for example, the loadings, penalties and allowances in the Award apply to the rates of pay due under the Agreement, rather than the Award rates.[6]
(a) The agreed loaded hourly rate for a level 4 employee at the commencement of the proposed enterprise agreement will be $61. The commencement rates for other levels of employees will be adjusted in a corresponding manner.
(b) The agreed increases in loaded hourly rates during the term of the proposed enterprise agreement will be 4.5% at the end of year 1, 4% at the end of year 2, and 4% at the end of year 3.
(c) The proposed enterprise agreement will have a four year term.
(d) Upfront payments in the following amounts will be paid to employees on the commencement of operation of the proposed enterprise agreement: $0 for Level 1, $4,000 for Level 2, $7,000 for Level 3 and $15,000 for Levels 4, 5 and 6.
(e) The RTBU will discontinue its underpayment of wages claim against Qube in the Federal Court if the proposed enterprise agreement is voted up by employees. The RTBU will not bring the same underpayment claim again against Qube and will not encourage or assist a member to bring such a claim.
(f) The agreed position is subject to approval by a majority of the RTBU delegates for the proposed enterprise agreement. If a majority of RTBU delegates support the agreed position, it will be put to employees, in the form of a new enterprise agreement, for their vote and the RTBU will encourage its members to vote in support of the proposed enterprise agreement.
234 Applications for intractable bargaining declarations
(1) A bargaining representative for a proposed enterprise agreement, other than a greenfields agreement, may apply to the FWC for a declaration (an intractable bargaining declaration) under section 235 in relation to the agreement.
Note: The consequence of an intractable bargaining declaration being made in relation to the agreement is that the FWC may, in certain circumstances, make an intractable bargaining workplace determination under section 269 in relation to the agreement.
(2) An application for an intractable bargaining declaration must not be made in relation to a proposed multi‑enterprise agreement unless a supported bargaining authorisation or single interest employer authorisation is in operation in relation to the agreement.
235 When the FWC may make an intractable bargaining declaration
(1) The FWC may make an intractable bargaining declaration in relation to a proposed enterprise agreement if:
(a) an application for the declaration has been made; and
(b) the FWC is satisfied of the matters set out in subsection (2); and
(c) it is after the end of the minimum bargaining period (see subsection (5)).
Matters of which the FWC must be satisfied before making an intractable bargaining declaration
(a) the FWC has dealt with the dispute about the agreement under section 240 and the applicant participated in the FWC's processes to deal with the dispute; and
(b) there is no reasonable prospect of agreement being reached if the FWC does not make the declaration; and
(c) it is reasonable in all the circumstances to make the declaration, taking into account the views of all the bargaining representatives for the agreement.
(b) the proposed enterprise agreement to which it relates; and
(c) any other matter prescribed by the procedural rules.
(a) comes into operation on the day it is made; and
(b) ceases to be in operation when each employer specified in the declaration is covered by an enterprise agreement or a workplace determination.
(5) The end of the minimum bargaining period in relation to a proposed enterprise agreement is:
(a) if one or more enterprise agreements (the existing agreements) apply to any of the employees that will be covered by the proposed agreement - the later of the following:
(i) the day that is 9 months after the nominal expiry date for that existing agreement, or the latest nominal expiry date for those existing agreements;
(ii) the day that is 9 months after the day bargaining starts, as worked out under subsection (6); or
(b) the day that is 9 months after the day bargaining starts, as worked out under subsection (6).
(6) For the purposes of subparagraph (5)(a)(ii) and paragraph (5)(b), the day bargaining starts for a proposed agreement is:
(a) if a supported bargaining authorisation or single interest employer authorisation is in operation in relation to the proposed agreement - the day that the authorisation first comes into operation; or
(b) otherwise - the notification time for the proposed agreement.
(a) the Commission has dealt with the dispute about the agreement under section 240 and the applicant participated in the Commission's processes to deal with the dispute; and
(b) there is no reasonable prospect of agreement being reached if the Commission does not make the declaration; and
(c) it is reasonable in all the circumstances to make the declaration, taking into account the views of all the bargaining representatives for the agreement.
(1) The FWC may, if it considers it appropriate to do so, specify in the declaration a period (the post‑declaration negotiating period) that:
(i) the day specified by the FWC in the declaration; or
(ii) any later day determined under subsection (2).
Note: The FWC cannot make an intractable bargaining workplace determination during any post‑declaration negotiating period (see section 269) but may still provide other assistance during the period, such as conciliation.
(2) The FWC may, if it considers it appropriate to do so and taking into account any views of the bargaining representatives, extend the period referred to in subsection (1) by determining a later day for the purposes of subparagraph (1)(b)(ii).
Has an application for the declaration been made? - s 235(1)(a)
Is it after the end of the minimum bargaining period? - s 235(1)(c)
Has the Commission dealt with the dispute about the agreement under section 240, and has the applicant participated in the Commission's processes to deal with the dispute? - s 235(2)(a)
Is there no reasonable prospect of agreement being reached if the Commission does not make the declaration? - s 235(2)(b)
(a) Qube is prepared to undertake that if the application is dismissed, it will keep the November agreement open for at least 30 days, so the removal of the pressure created by the application will not cause Qube to move backwards;
(b) Neither Qube nor the RTBU has said that the November agreement represents its final offer, so Qube and the RTBU may have some further room to move. However, the RTBU has not come forward with any new proposal or offer. The fact that after reaching the November agreement neither party has openly bid against itself, says nothing about the prospects of agreement being reached, especially having regard to the history of the bargaining between these parties. Far from being intractable (over 0.5%), the parties are merely reluctant to weaken their negotiating position; and
(c) the delegates' position, and that of the RTBU members, is likely to be influenced by the prospect of a declaration and a workplace determination, given that the RTBU has been promoting that pathway to its members as an alternative to bargaining, and that there is still concern among employees about delay in effective wage increases. Dismissing the application is likely to soften the delegates' position and that of employees to a sufficient extent to achieve agreement, especially when confronted with the alternative which is further delays to improved wages and conditions.
(a) the November agreement is incredibly generous, offering an initial rate increase of over 18.5%, further 12.5% increases over three years and up-front payments of as much as $15,000 for Level 4 employees and above;
(b) while the discontinuance of the underpayment claim represents a concession by the employees, its significance is reduced since the employees are planning to commence a class action making the same claims in any event. This was also an agreed aspect of the RTBU September offer;
(c) nothing of substance has changed between September 2024 and now. The RTBU has not advanced any explanation for why the RTBU September offer is no longer acceptable, or clarified whether the offer remains on the table;
(d) the RTBU has not put forward any new offer or proposal to replace the November agreement; and
(e) the RTBU has been promoting the declaration/workplace determination pathway to members as an alternative to bargaining.
After this vote, if the agreement is voted down, we expect the matter will be declared intractable, owing to the fundamental disagreement between the parties surrounding the underpayment claim.[86]
Is it reasonable in all the circumstances to make the declaration, taking into account the views of all the bargaining representatives for the agreement? - s 235(2)(c)
(a) derailing the in-principle agreement by dropping its Federal Court Proceeding on Qube in a s.240 conference, several days after it had been filed and just as the in-principle agreement was about to be reached;
(b) reneging on its proposal for a global settlement based on loaded rates;
(c) cancelling a s.240 conference scheduled for 26 September 2023 and then refusing to participate in bargaining meetings until 7 March 2024, so as to 'run down the clock' on the "minimum bargaining period"; and
(d) making incoherent and contradictory wage claims in relation to unloaded rates.
(a) the appropriateness of any proposed remuneration outcome under the workplace determination must take into account the current status quo: that is, the remuneration payable under the 2019 Agreement. While a significant matter in any event, the status quo is made critical by s.270A of the FW Act, which will require the provisions of the workplace determination dealing with wage rates, penalties, loadings and allowances to be no less favourable than the corresponding terms of the current 2019 Agreement;
(b) the status quo is unclear because there is currently an unresolved dispute as to whether the wage rates in the 2019 EA are loaded rates;
(c) it is difficult to see how several of the factors the Commission must consider under s.275 of the FW Act could be approached and assessed, without knowing whether the employees are presently entitled to a 20%-30% uplift on current payment arrangements (and the potential existential impact that might have on the ongoing viability of Qube's rail logistics business); and
(d) determining this issue will involve the Full Bench deciding the very question which is the subject of the underpayment claim proceedings, and which will be determined by the Federal Court soon after any workplace determination was made. Further, if the Court reaches a different conclusion on that issue, the workplace determination will be liable to be quashed, leading to a considerable waste of public and private resources.
(a) Qube and the RTBU were able to reach an agreement acceptable to each of them as bargaining representatives, which only unravelled because it was not approved by the delegates;
(b) the November agreement is within 0.5% (over three years) of the RTBU September offer;
(c) the RTBU has not put forward any new proposal or offer, nor said that the November agreement was its 'final' offer. Nor has Qube;
(d) the position of the RTBU and the delegates appears to be significantly influenced by the perceived benefit of the declaration/workplace determination pathway over bargaining;
(e) the intractable bargaining process was intended as a mechanism of last resort to break an irresolvable impasse in bargaining and should not be deployed as a substitute for and become an impediment to enterprise bargaining. It is not reasonable to grant a declaration if the intractable bargaining process itself is the very thing that is preventing an agreement from otherwise being reached. Nor should the Commission simply make declaration with a post declaration negotiating period, as a means of encouraging the parties to take 'one last chance' to reach agreement. Such a course is the antithesis of the statutory criteria for the making of the declaration in the first place; and
(f) the Commission should be very slow, under the rubric of reasonableness, to reward industrial parties (employers and employees alike) who 'backtrack' and renege on earlier proposals to reach agreement (if that is what the Commission concludes the RTBU and its delegates are doing), because of perceived improvements in their position in relation to an intractable bargaining.
Requirement for Commission to determine the loaded rates issue
Determining the level of wage increases in this context does not lend itself to the adoption of a decision rule or a mathematical formula. Fundamentally, the Tribunal is seeking to arrive at an outcome which is fair in all the circumstances and that appropriately balances the interests of the parties. The factors in s.275 and ss.577 and 578 of the Act are also relevant and must be taken into account.[93]
Are the intractable bargaining declaration proceedings an impediment to bargaining?
Conclusion re intractable bargaining declaration
Post-declaration negotiating period - s.235A

Mr M. Follett KC and Mr D. Ternovski, Counsel, for the Respondent
[1] Witness Statement of Steven Garry Ellem dated 27 May 2024 [5], DHB 644
[2] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [5], Digital Hearing Book (DHB) 33
[16] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 646
[17] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [27], DHB 37
[18] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 646
[20] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [28], DHB 37
[25] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 649
[26] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [38], DHB 39
[28] Witness Statement of Peter Matthews dated 28 October 2024 [25], DHB 1109
[30] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [39]-[44] DHB 39-40
[32] Witness Statement of Steven Garry Ellem dated 27 May 2024 [20], DHB 669
[33] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [47], DHB 41
[35] Witness Statement of Steven Garry Ellem dated 27 May 2024 [22]-[23], DHB 669
[36] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [52] DHB 42
[37] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 652
[38] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [53], DHB 42
[41] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 656
[42] Witness Statement of Kevin Thomas Pryor dated 10 May 2024[59]-[63], DHB 44-45
[43] Witness Statement of Peter Matthews dated 10 May 2023 [56]-[57], DHB 425-426
[44] Witness Statement of Kevin Thomas Pryor dated 10 May 2024 [64], DHB 45
[46] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 658
[47] Witness Statement of Kevin Thomas Pryor dated 10 May 2024, [69]-[76], DHB 47
[48] Witness Statement of Steven Garry Ellem dated 27 May 2024, DHB 661
[49] Witness Statement of Kevin Thomas Pryor dated 10 May 2024, [82]-[88] DHB 48
[52] Witness Statement of Peter Matthews dated 28 October 2024 [3], DHB 1105
[67] Witness Statement of Steven Garry Ellem dated 27 May 2024 [15], DHB 666
[72] Transport Workers' Union of Australia v Cleanaway Operations Pty Ltd T/A Cleanaway Operations Pty Ltd [2024] FWCFB 127, [12]
[75] UFU v FRV [2023] FWCFB 180, [29].
[76] Transport Workers' Union of Australia v Cleanaway Operations Pty Ltd T/A Cleanaway Operations Pty Ltd [2024] FWCFB 127, [11]
[78] UFU v FRV [2023] FWCFB 180, [30]
[80] Suncoast Scaffold Pty Ltd [2023] FWCFB 105, [17] cited in UFU v FRV [2023] FWCFB 180, [30]
[81] UFU v FRV [2023] FWCFB 180, [31]
[83] Witness Statement of Peter Matthews dated 28 October 2024 PM-1, DHB 1121-1129
[88] Witness Statement of Gregory Woods dated 28 October 2024 [25], DHB 1229
[90] Parks Victoria v The Australian Workers' Union and others [2013] FWCFB 950, [177].
[95] Witness Statement of Peter Matthews dated 28 October 2024 PM-5, DHB 1145
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Australian Rail, Tram and Bus Industry Union
Qube Logistics