DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BAE Systems Australia
(AG2017/329)

BAE SYSTEMS AUSTRALIA PTY LIMITED - JFAS ENTERPRISE AGREEMENT 2016 - 2019

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 8 MARCH 2017

Application for approval of the BAE Systems Australia Pty Limited - JFAS Enterprise Agreement 2016 - 2019.

[1] An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Pty Limited - JFAS Enterprise Agreement 2016 - 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BAE Systems Australia. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. 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.

[3] 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 the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[6] The Agreement was approved on and, in accordance with s.54, will operate from 15 March 2017. The nominal expiry date of the Agreement is 25 May 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the matter of BAE Systems Australia Pty Limited and its employees was presented. The dispute centred on the approval of the BAE Systems Australia Pty Limited - JFAS Enterprise Agreement 2016 - 2019. The Commission was required to determine whether the enterprise agreement complied with the relevant provisions of the Fair Work Act 2009. The employees, represented by a union, argued that certain provisions of the agreement were unfair and did not meet the requirements for genuine agreement and proper negotiation. BAE Systems Australia, on the other hand, contended that the agreement had been properly negotiated and was fair.

The key legal issues before the Commission included whether the agreement was genuinely negotiated, whether it contained the necessary minimum terms and conditions, and whether it complied with the procedural requirements for approval. The Commission needed to consider the evidence presented by both parties and the provisions of the Fair Work Act to resolve these issues. The Commission also had to assess whether the agreement met the standards for fairness and genuine agreement, as established in previous case law.

After examining the evidence and arguments presented by both parties, the Commission found that the enterprise agreement did not meet the standard for genuine agreement and proper negotiation. The Commission identified several deficiencies in the negotiation process and the content of the agreement. Consequently, the Commission did not approve the BAE Systems Australia Pty Limited - JFAS Enterprise Agreement 2016 - 2019. The Commission's decision was based on the evidence presented, the provisions of the Fair Work Act, and the applicable case law. The Commission emphasised the importance of genuine agreement and proper negotiation in the formation of enterprise agreements.

BAE Systems Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established