DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Pharmaceutical Industries Ltd
(AG2016/7031)

AUSTRALIAN PHARMACEUTICAL INDUSTRIES LTD NSW ENTERPRISE AGREEMENT 2016

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COMMISSIONER GREGORY	MELBOURNE, 17 JANUARY 2017

Application for approval of the Australian Pharmaceutical Industries Ltd NSW Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Australian Pharmaceutical Industries Ltd NSW Enterprise Agreement 2016 (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] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The National Union of Workers being a bargaining representative 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 organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 January 2017. The nominal expiry date of the Agreement is 24 September 2019.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, Australian Pharmaceutical Industries Ltd, sought approval of the New South Wales Enterprise Agreement 2016. The dispute involved the proposed terms and conditions of employment for employees under the agreement. The matter was heard in the Fair Work Commission. The central legal issues before the Commission were whether the agreement met the "better off overall test" as stipulated in the Fair Work Act 2009, and whether it complied with the relevant provisions of the Act. The "better off overall test" requires that employees be no worse off financially and, ideally, better off overall compared to their previous conditions of employment. Additionally, the Commission had to determine if the agreement was appropriately negotiated and whether it contained all mandatory terms as required by law.

The Commission found that the proposed agreement did meet the "better off overall test," with employees receiving improved wages, leave provisions, and other benefits. The Commission also determined that the agreement was the product of genuine bargaining between the parties and contained all mandatory terms. The applicant successfully demonstrated that the agreement did not contain any clauses that would unfairly disadvantage employees. Consequently, the Commission approved the agreement, finding it to be in compliance with the Fair Work Act 2009.

Following the Commission's approval, the Australian Pharmaceutical Industries Ltd NSW Enterprise Agreement 2016 was certified, effective from the date of the decision. The agreement now governs the employment conditions of the employees covered by it, and both the employer and the employees are bound by its terms. The decision reinforces the importance of ensuring that enterprise agreements provide genuine benefits to employees while adhering to the statutory requirements set out in the Fair Work Act 2009.

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