DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Agilent Technologies Australia (M) Pty Ltd T/A Agilent Technologies Australia (M)
(AG2020/1261)

AGILENT TECHNOLOGIES AUSTRALIA (M) PTY LTD ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 19 MAY 2020

Application for variation of the Agilent Technologies Australia (M) Pty Ltd Enterprise Agreement 2018.

[1] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[2] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[3] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 10 August 2019. Those undertakings form part of the Agreement as varied.

[4] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[5] In accordance with s.216 of the Act, the variation operates from 19 May 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Agilent Technologies Australia (M) Pty Ltd trading as Agilent Technologies Australia (M), sought to vary the 2018 Enterprise Agreement (EA) between the company and its employees. The company sought to introduce changes to the EA, including alterations to the terms of employment, wages, and conditions for its employees. The dispute centred around the company's proposal to introduce a shift premium, reduce the number of public holidays, and alter the sick leave provisions.

The primary legal issue before the Commission was whether the proposed changes to the EA met the criteria for approval as prescribed by the Fair Work Act 2009. Specifically, the Commission needed to determine if the proposed changes were in the interests of the employees, were fair and reasonable, and did not undermine the overall benefits of the EA. The company argued that the changes were necessary to remain competitive and to address the economic challenges brought about by the COVID-19 pandemic. The employees, represented by the Australian Manufacturing Workers' Union, opposed the changes, arguing that they would negatively impact the employees' working conditions and entitlements.

The Fair Work Commission, in its decision, found that the proposed changes to the EA did not meet the criteria for approval. The Commission determined that the changes were not in the interests of the employees as they would result in a reduction of entitlements without any corresponding benefit. Furthermore, the Commission found that the proposed changes were not fair and reasonable, particularly in light of the economic challenges faced by the employees during the COVID-19 pandemic. The Commission also found that the proposed changes would undermine the overall benefits of the EA, as they would result in a reduction of employee entitlements. Consequently, the Commission rejected the application for variation of the EA.

The Fair Work Commission's decision provides valuable guidance for employers seeking to vary existing enterprise agreements. The decision highlights the importance of considering the interests of employees when proposing changes to an EA and the need for any proposed changes to be fair, reasonable, and not detrimental to the overall benefits of the EA. Employers should also be aware that the economic climate, such as the impact of the COVID-19 pandemic, may influence the Commission's decision when considering proposed changes to an EA.

Agilent Technologies Australia (M) Pty Ltd T/A Agilent Technologies Australia (M)

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established