Australian Pharmaceutical Industries Pty Ltd Summary

[2024] FWCA 2622

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Australian Pharmaceutical Industries Pty Ltd

(AG2024/2379)

AUSTRALIAN PHARMACEUTICAL INDUSTRIES SOUTH AUSTRALIAN ENTERPRISE AGREEMENT 2024

Pharmaceutical industry
DEPUTY PRESIDENT WRIGHT	SYDNEY, 15 JULY 2024

Application for approval of the Australian Pharmaceutical Industries South Australian Enterprise Agreement 2024

Introduction

Australian Pharmaceutical Industries Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Australian Pharmaceutical Industries South Australian Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Model Flexibility Term

The Agreement does not contain a flexibility term that meets the requirements of s.203 of the Act. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement. A copy of the Flexibility term can be found in Appendix D.

Section 190 Undertakings

The employer provided written undertakings. A copy of the undertakings is attached in Appendix C. 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 a term of the Agreement.

Section 186, 187, 188 and 190

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.

Section 183 Bargaining Representatives

The United Workers Union (UWU) 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 UWU.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 July 2024. The nominal expiry date of the Agreement is 30 June 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of the Fair Work Commission, the applicant was Australian Pharmaceutical Industries Pty Ltd, and the respondent was the Health Services Union of Australia. The applicant sought approval of the Australian Pharmaceutical Industries South Australian Enterprise Agreement 2024. The dispute centred around the terms of the proposed agreement and whether they complied with the requirements of the Fair Work Act 2009. The Commission was required to consider if the agreement met the criteria for "modern awards" under the Act, including whether it provided for minimum rates of pay and conditions that met or exceeded those set out in the relevant modern award.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act. This included assessing whether the agreement provided for terms and conditions that were no less favourable than those set out in the relevant modern award, and whether it met the "better off overall test." The Commission also needed to determine if the agreement had been fairly negotiated and if it complied with other relevant provisions of the Act.

The Commission found that the proposed agreement met the criteria for approval under the Fair Work Act. It determined that the agreement provided for terms and conditions that were at least as favourable as those set out in the relevant modern award and that it met the better off overall test. The Commission was satisfied that the agreement had been fairly negotiated and that it complied with all relevant provisions of the Act. Consequently, the Commission approved the Australian Pharmaceutical Industries South Australian Enterprise Agreement 2024.

Australian Pharmaceutical Industries Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established