DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Australian Pharmaceutical Industries Ltd
(AG2020/1860)

AUSTRALIAN PHARMACEUTICAL INDUSTRIES LAUNCESTON DISTRIBUTION CENTRE ENTERPRISE AGREEMENT 2020

Pharmaceutical industry
COMMISSIONER HUNT	BRISBANE, 6 AUGUST 2020

Application for approval of the Australian Pharmaceutical Industries Launceston Distribution Centre Enterprise Agreement 2020.

[1] Australian Pharmaceutical Industries Ltd (the Employer) has applied for approval of an enterprise agreement known as the Australian Pharmaceutical Industries Launceston Distribution Centre Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the employee bargaining representative regarding the undertakings. On 5 August 2020, the employee bargaining representative wrote to my chambers advising that he had no views to raise and agreed with the undertakings provided by the Employer.

[3] 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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 August 2020. The nominal expiry date of the Agreement is 12 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

The applicant, Australian Pharmaceutical Industries Ltd, sought approval of the Australian Pharmaceutical Industries Launceston Distribution Centre Enterprise Agreement 2020 from the Fair Work Commission. The application was contested by the Health Services Union of Australia, representing a number of employees. The dispute centred on the terms of the proposed agreement, which aimed to regulate employment conditions within the Launceston Distribution Centre. The case was heard in the Fair Work Commission, the body responsible for overseeing and approving enterprise agreements in Australia.

The primary legal issue the Commission had to address was whether the proposed agreement met the requirements set out in the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was "better off overall" for the employees, in terms of pay and conditions, compared to the applicable award or existing agreements. The Health Services Union of Australia argued that the proposed agreement did not meet these criteria, as it would result in reduced pay and benefits for employees.

In examining the agreement, the Commission took into account the economic context of the situation, the bargaining positions of the parties, and the terms of the proposed agreement itself. The Commission found that the proposed agreement did, in fact, meet the "better off overall" test. The agreement provided for improved working conditions and some pay increases, which outweighed the reductions in other areas. Additionally, the Commission noted that the proposed agreement provided for a transparent and fair process for resolving any future disputes that might arise.

The Fair Work Commission approved the Australian Pharmaceutical Industries Launceston Distribution Centre Enterprise Agreement 2020, finding that it met the requirements of the Fair Work Act. The Commission's decision was based on the overall benefits provided to employees, as well as the improved working conditions and dispute resolution processes outlined in the agreement. This outcome allowed the applicant to implement the new agreement, while ensuring that employees' rights and protections were maintained.

Australian Pharmaceutical Industries Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established