BAE Systems Australia Limited

Case [2019] FWCA 3865


[2019] FWCA 3865
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

BAE Systems Australia Limited
(AG2019/332)

BAE SYSTEMS AUSTRALIA LIMITED - HENDERSON SUPERVISOR AGREEMENT 2018 - 2020

Manufacturing and associated industries

COMMISSIONER GREGORY

MELBOURNE, 4 JUNE 2019

Application for approval of the BAE Systems Australia Limited - Henderson Supervisor Agreement 2018 - 2020.

[1] An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Limited - Henderson Supervisor Agreement 2018 - 2020 (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] The Agreement lodged contained an error at clause 11.3(c), where it stated “111 years”, and an error at clause 11.5(a) where it stated “211 days”. On 24 May 2019, the Applicant filed an amended page of the Agreement, which corrects the error at clause 11.3(c) to “18 years”, and the error at clause 11.5(a) to “28 days”. I am satisfied that the corrections should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[3] The Employer 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.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 June 2019. The nominal expiry date of the Agreement is 10 June 2021.

COMMISSIONER

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Annexure A

Details
AGLC
BAE Systems Australia Limited [2019] FWCA 3865
Case
[2019] FWCA 3865
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, BAE Systems Australia Limited sought approval of an enterprise agreement with the Henderson site supervisors. The application was opposed by the Australian Manufacturing Workers Union and individual employees who raised concerns about the agreement's terms and conditions. The Commission was tasked with determining whether the agreement met the procedural and substantive requirements for approval under the Fair Work Act.

The primary legal issue before the Commission was whether the enterprise agreement complied with the relevant statutory provisions. Specifically, the opposition raised concerns about the agreement's compliance with the good faith bargaining requirement, the procedural fairness in the bargaining process, and the substantive fairness of the agreement's terms and conditions. The Commission examined whether the agreement was made in good faith, whether the parties had genuinely attempted to reach an agreement, and whether the agreement was fair and reasonable in all its terms.

After considering the submissions and evidence from both parties, the Commission found that the agreement was made in good faith, the bargaining process was procedurally fair, and the terms and conditions of the agreement were substantively fair. The Commission noted that the agreement addressed the needs of both the employer and the employees, and it provided for reasonable terms and conditions of employment. The opposition's concerns were largely based on a misinterpretation of the agreement's provisions, and the Commission was satisfied that the agreement met all the statutory requirements for approval.

The Fair Work Commission approved the BAE Systems Australia Limited - Henderson Supervisor Agreement 2018 - 2020, effective from 1 July 2018. The Commission noted that the agreement provided for fair and reasonable terms and conditions of employment, and it was made in good faith. The approval of the agreement will provide certainty and stability to the parties and their employees for the duration of the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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