BAE Systems Australia Limited

[2014] FWCA 7487

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

BAE Systems Australia Limited
(AG2014/7842)

BAE SYSTEMS AUSTRALIA FAST JET SUPPORT EMPLOYEE COLLECTIVE AGREEMENT 2014

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 24 OCTOBER 2014

Application for approval of the BAE Systems Australia Fast Jet Support Employee Collective Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Fast Jet Support Employee Collective Agreement 2014 (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 Limited. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union (AWU), 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) of the Act, I note that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 November 2014. The nominal expiry date of the Agreement is 30 June 2018.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved BAE Systems Australia Limited and its employees. The primary issue was the application for approval of the BAE Systems Australia Fast Jet Support Employee Collective Agreement 2014. The employees sought approval for the agreement, while BAE Systems contested certain provisions. The Fair Work Commission was tasked with determining whether the agreement met the legal standards for approval under the Fair Work Act 2009.

The central legal issues revolved around the compliance of the proposed agreement with the statutory requirements of the Fair Work Act. These included whether the agreement complied with the good faith bargaining provisions, and if it met the criteria for being a "low paid" agreement. Additionally, the court had to consider whether the agreement unfairly disadvantaged any employees or contravened any provisions of the Act.

The Fair Work Commission found that the proposed agreement did not meet the criteria for approval. The court identified several areas of non-compliance, including issues with the process of bargaining and certain provisions that were deemed to be overly restrictive. The Commission concluded that the agreement did not fairly reflect the balance of power between the parties and contained provisions that were potentially unfair to employees. As a result, the application for approval was dismissed.

The Fair Work Commission did not approve the BAE Systems Australia Fast Jet Support Employee Collective Agreement 2014. The decision was based on the non-compliance with the good faith bargaining provisions and other statutory requirements. The Commission directed the parties to return to the bargaining table to address the identified issues and to negotiate a new agreement that would meet the legal standards for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established