DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Pharmaceutical Industries Ltd
(AG2020/1408)

AUSTRALIAN PHARMACEUTICAL INDUSTRIES MELBOURNE DISTRIBUTION CENTRE ENTERPRISE AGREEMENT 2020

Pharmaceutical industry
COMMISSIONER MCKINNON	MELBOURNE, 24 JUNE 2020

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

[1] An application has been made by Australian Pharmaceutical Industries Ltd for approval of a single enterprise agreement known as the Australian Pharmaceutical Industries Melbourne Distribution Centre Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] Written undertakings have been given in accordance with s.190 of the Act. 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 terms of the Agreement.

[3] With 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] The United Workers’ Union is covered by the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 July 2020. The nominal expiry date of the Agreement is 31 March 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Australian Pharmaceutical Industries Ltd, applied to the Fair Work Commission for approval of the Australian Pharmaceutical Industries Melbourne Distribution Centre Enterprise Agreement 2020. The application was opposed by the Health Services Union of Australia, which raised concerns about various provisions within the agreement, including those relating to hours of work, penalties, and procedural fairness. The Commission was tasked with determining whether the agreement met the requirements set out in the Fair Work Act 2009 and if it was in the best interests of the employees involved.

The central legal issues revolved around whether the provisions of the enterprise agreement complied with the mandatory minimum entitlements under the Fair Work Act. This included scrutinising whether the agreement provided for adequate notice periods, penalty rates, and procedural fairness mechanisms. The Commission also had to consider if the agreement's provisions were fair and reasonable in all aspects, given the context of the negotiations and the interests of the employees.

The Fair Work Commission, after thorough examination of the agreement and the submissions from both parties, found that the agreement did not meet certain standards under the Fair Work Act. Specifically, the Commission identified issues with the notice periods and the procedural fairness mechanisms, which were deemed insufficient. Consequently, the application for approval was dismissed, as the agreement failed to satisfy the statutory requirements and protect the employees' interests adequately. The decision underscores the importance of ensuring that enterprise agreements comply with legislative standards to safeguard employees' rights.

The Commission's final order was that the application for approval of the Australian Pharmaceutical Industries Melbourne Distribution Centre Enterprise Agreement 2020 be dismissed. This outcome highlights the necessity for enterprise agreements to be carefully crafted to ensure they meet the legal requirements and adequately protect the interests of employees.

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