CHEP DERRIMUT (VIC) SERVICE CENTRE ENTERPRISE AGREEMENT 2025

Application for approval of the CHEP Derrimut (VIC) Service Centre Enterprise Agreement 2025

[1] CHEP Australia Limited trading as Chep Australia (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the CHEP Derrimut (VIC) Service Centre Enterprise Agreement 2025 (the Agreement).

[2] The United Workers' Union (UWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the UWU.

[3] The Notice of Employee Representational Rights (NERR) contained a minor typographical error which I satisfied I should disregard, pursuant to my discretion conferred by s.188(5) of the Act.

[4] I raised that the personal leave provision at Clause 33.4 of the Agreement relating to notice may be more stringent than s 107 of the Act, which is the equivalent provision in the National Employment Standards (NES). To address this concern, the Employer provided an undertaking to amend Clause 33.4 to state that "The employee must provide notice to the Company as soon as reasonably practicable. For the purposes of this Agreement the parties agree that, where practicable an employee is required to advise the supervisor before the commencement of their normal start time of their inability to attend work." Further, the Employer also submits that the Agreement contains an NES precedent clause at Clause 8.2 which ensures that the NES will prevail above any inconsistencies between the Agreement and the Award.

[5] Noting clause 8.2 of the Agreement and the Employer's undertaking I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] Clause 23.1 of the Agreement provides for overtime penalties for casual employees. The clause indicates that all employees except for continuous shift workers receive overtime penalties of 150% for the first 3 hours and 200% thereafter. Clause 21.1(d) of the Storage Services and Wholesale Award 2020 (the Award) prescribes overtime penalties for casual employees as 175% for the first 2 hours and 225% thereafter calculated on a cumulative basis. As the Agreement does not include casual loading for overtime, I raised that Clause 23.1 presents a BOOT concern for casual employees engaged in lower paid classifications if they work regular overtime or overtime in isolation.

[7] The Employer addressed this concern by providing an undertaking that casual employees working overtime shall be entitled to a casual loading of 25% in addition to the overtime rates.

[8] Clause 23.6 of the Agreement prescribes a Time Off In Lieu (TOIL) arrangement but does not specifically state that overtime will be paid out upon resignation or termination as per clause 21.3(k) of the Award. The Employer provided an undertaking to address this issue, in effect inserting the Award provision into the Agreement.

[9] A copy of the undertakings is attached in Annexure A. 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. The undertakings are taken to be a term of the agreement.

[10] 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.

[11] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 December 2025. The nominal expiry date of the Agreement is 30 September 2028.

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