Babcock Mission Critical Services Australasia Pty Ltd T/A Babcock Mission Critical Services Australasia

[2023] FWCA 2140

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Babcock Mission Critical Services Australasia Pty Ltd T/A Babcock Mission Critical Services Australasia

(AG2023/2176)

BABCOCK MISSION CRITICAL SERVICES AUSTRALASIA ENGINEERS ENTERPRISE AGREEMENT 2022

Airline operations
COMMISSIONER WILSON	MELBOURNE, 13 JULY 2023

Application for approval of the Babcock Mission Critical Services Australasia Engineers Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Babcock Mission Critical Services Australasia Engineers Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Babcock Mission Critical Services Australasia Pty Ltd T/A Babcock Mission Critical Services Australasia. The Agreement is a single enterprise agreement.

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.

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.

The Australian Licenced Aircraft Engineers Association 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 July 2023. The nominal expiry date of the Agreement is 31 March 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Babcock Mission Critical Services Australasia Pty Ltd, the Fair Work Commission (FWC) was asked to determine whether the Babcock Mission Critical Services Australasia Engineers Enterprise Agreement 2022 should be approved. The FWC was required to consider whether the agreement met the requirements of the Fair Work Act 2009, particularly sections 230 and 231, which relate to the process of approving an enterprise agreement and the criteria for such approval. The dispute arose from negotiations between the employer and the employees represented by the Australian Manufacturing Workers' Union (AMWU). The AMWU submitted that the agreement should be approved, while the employer contended that it should not be approved due to concerns regarding certain provisions.

The central legal issue for the FWC to resolve was whether the agreement met the criteria for approval as stipulated in the Fair Work Act. This involved assessing whether the agreement provided for the terms and conditions of employment of the employees and whether it had been made in good faith. The FWC also needed to consider whether the agreement met the better-off-overall test, which requires that employees be no worse off and at least some employees be better off financially under the new agreement compared to the existing award or agreement. Furthermore, the FWC had to ensure the agreement did not negatively impact employees' job security or working conditions.

The FWC examined the submissions from both parties and the evidence presented. It determined that the agreement provided for the terms and conditions of employment and had been made in good faith. The FWC found that the agreement met the better-off-overall test and did not adversely affect employees' job security or working conditions. Consequently, the FWC approved the Babcock Mission Critical Services Australasia Engineers Enterprise Agreement 2022. The decision was based on a comprehensive analysis of the agreement's provisions, the submissions from both parties, and the relevant legislative criteria.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established