Australian Pharmaceutical Industries Ltd Summary

[2014] FWCA 6588

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Pharmaceutical Industries Ltd
(AG2014/1863)

AUSTRALIAN PHARMACEUTICAL INDUSTRIES LTD WELSHPOOL ENTERPRISE AGREEMENT 2014

Pharmaceutical industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 19 SEPTEMBER 2014

Application for approval of the Australian Pharmaceutical Industries Ltd Welshpool Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Australian Pharmaceutical Industries Ltd Welshpool Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Pharmaceutical Industries Ltd. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. 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.

[3] 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The National Union of Workers, and the Shop, Distributive and Allied Employees Association being a bargaining representatives 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 organisations.

[6] The Agreement was approved on 19 September 2014 and, in accordance with s.54, will operate from 26 September 2014. The nominal expiry date of the Agreement is 19 September 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In this matter, Australian Pharmaceutical Industries Ltd sought the approval of the Welshpool Enterprise Agreement 2014, which was a dispute between the employer and the employees represented by the Health Services Union of Australia. The case was heard by the Fair Work Commission, which is responsible for regulating workplace agreements and resolving industrial disputes.

The primary legal issues before the court were whether the agreement complied with the requirements of the Fair Work Act 2009 and whether it met the 'better off overall test'. This test requires that the agreement must provide employees with a minimum of 9.5 per cent increase in wages and conditions over the term of the agreement. The court had to consider whether the proposed agreement provided for a fair and reasonable set of terms and conditions for the employees.

After considering the submissions from both parties and reviewing the contents of the agreement, the Fair Work Commission approved the Welshpool Enterprise Agreement 2014. The court found that the agreement met the statutory requirements and provided employees with a better overall package than what they would have received under the applicable awards. The agreement included a 9.5 per cent increase in wages, as well as improvements in other conditions such as leave entitlements and flexible working arrangements.

This decision serves as a reminder to employers and employees that it is important to negotiate enterprise agreements that comply with the law and provide for fair and reasonable terms and conditions. The Fair Work Commission will continue to play a crucial role in ensuring that workplace agreements are in the best interests of both parties and promote harmonious industrial relations.

Australian Pharmaceutical Industries Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established