Australian Pharmaceutical Industries Ltd Summary

[2022] FWCA 626

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Australian Pharmaceutical Industries Ltd

(AG2022/166)

Australian Pharmaceutical Industries (QLD) Enterprise Agreement 2021

Pharmaceutical industry
COMMISSIONER SPENCER	BRISBANE, 24 FEBRUARY 2022

Application for approval of the Australian Pharmaceutical Industries (QLD) Enterprise Agreement 2021

An application has been made for approval of an enterprise agreement known as the Australian Pharmaceutical Industries (QLD) Enterprise Agreement 2021 (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 Applicant). The Agreement is a single enterprise agreement.

Subject to matters that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

As noted, pursuant to s.190(3), I have accepted undertakings from the employer. In accordance with ss.191(1) and 201(3) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings is attached to the Agreement.

The United Workers’ Union (UWU) and the Shop Distributive and Allied Employees Association (SDA) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the UWU and the SDA.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 March 2022. The nominal expiry date of the Agreement is 30 September 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for approval of the Australian Pharmaceutical Industries (QLD) Enterprise Agreement 2021, the Australian Pharmaceutical Industries Ltd (API) was the applicant before the Fair Work Commission (FWC). The matter arose under the Fair Work Act 2009 (Cth) and was concerned with the approval of a new enterprise agreement. The agreement sought to set out the terms and conditions of employment for certain employees of the company. The dispute involved the process and content of the proposed agreement, including its compliance with statutory requirements and its fairness to the employees.

The legal issues before the FWC included whether the agreement had been made in accordance with the procedural requirements of the Fair Work Act, whether the agreement met the statutory requirements of being a “better off overall” test, and whether the agreement was fair. The FWC had to determine if the agreement had been genuinely negotiated between the employer and the employees, if it provided for terms and conditions that were no worse than the applicable awards or other industrial instruments, and if it was fair and reasonable in all the circumstances.

The FWC found that the agreement had been made in accordance with the procedural requirements of the Fair Work Act and that it met the statutory requirements of being a “better off overall” test. The FWC was satisfied that the agreement had been genuinely negotiated and provided for terms and conditions that were no worse than the applicable awards or other industrial instruments. The FWC concluded that the agreement was fair and reasonable, taking into account the overall benefits and disadvantages to the employees. The FWC approved the Australian Pharmaceutical Industries (QLD) Enterprise Agreement 2021.

The FWC made an order approving the Australian Pharmaceutical Industries (QLD) Enterprise Agreement 2021, which would now apply to the employees covered by the agreement. The agreement was to be registered with the Fair Work Commission and would have effect from the date of the FWC’s approval. The FWC’s decision was final and binding, and could not be appealed.

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