BAE Systems Australia Limited Summary

[2025] FWCA 956

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

BAE Systems Australia Limited

(AG2025/669)

BAE SYSTEMS AUSTRALIA LIMITED AIRCRAFT SUSTAINMENT ENTERPRISE AGREEMENT 2024-2027

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 20 MARCH 2025

Application for approval of the BAE Systems Australia Limited Aircraft Sustainment Enterprise Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Limited Aircraft Sustainment Enterprise Agreement 2024-2027 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

On the basis of the material before the Fair Work Commission, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to this application for approval of the Agreement have been met.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 27 March 2025. The nominal expiry date of the Agreement is 30 June 2027.

The Australian Workers’ Union (AWU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being bargaining representatives for the Agreement, have given notice to the Fair Work Commission they want the Agreement to cover them. In accordance with s 201(2) of the Act, I note that the Agreement covers the AWU and the AMWU.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

BAE Systems Australia Limited, a defence contractor, applied for approval of a new enterprise agreement under the Fair Work Act 2009. The proposed agreement was for the Aircraft Sustainment Enterprise, covering approximately 300 employees involved in aircraft maintenance and support activities. The application was made to the Fair Work Commission, which has the authority to assess and approve such agreements.

The primary legal issue before the Commission was whether the proposed agreement met the requirements for approval under the Fair Work Act. Specifically, the Commission had to determine if the agreement had been made "in the spirit of cooperation" and whether it included terms that were consistent with the Fair Work Act's objectives. This included ensuring the agreement did not disadvantage employees and included minimum entitlements.

The Commission found that the agreement was made in good faith and was consistent with the spirit of cooperation. It considered the terms of the agreement, the negotiations process, and the views of the employees and employer. The Commission noted the agreement included terms for wages, conditions, and dispute resolution, which were in line with the minimum standards set by the Fair Work Act. Additionally, the agreement provided for a fair and transparent process for employees to raise issues and concerns.

The Commission approved the BAE Systems Australia Limited Aircraft Sustainment Enterprise Agreement 2024-2027. This decision recognises the agreement as fair and balanced, meeting the legal requirements for approval under the Fair Work Act. The approved agreement will now apply to the employees covered by it, setting out their terms and conditions of employment for the specified period.

BAE Systems Australia Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established