DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BAE Systems Australia Limited
(AG2016/4669)

BAE SYSTEMS AUSTRALIA LIMITED-WILLIAMSTOWN MARITIME AGREEMENT 2016-2018

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 21 SEPTEMBER 2016

Application for approval of the BAE Systems Australia Limited-Williamstown Maritime Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Limited-Williamstown Maritime Agreement 2016-2018 (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 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.

[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 Australian Workers’ Union, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 September 2016. The nominal expiry date of the Agreement is 22 May 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

BAE Systems Australia Limited recently faced a case in the Fair Work Commission concerning the approval of the BAE Systems Australia Limited-Williamstown Maritime Agreement 2016-2018. The dispute arose from the negotiation and proposed ratification of an enterprise agreement between the company and its maritime workforce. The Commission was tasked with determining whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The primary legal issues before the Commission involved assessing whether the agreement was made in good faith, whether it complied with procedural fairness, and whether it satisfied the criteria for approval set out in the Fair Work Act. Specifically, the Commission had to consider if the agreement contained the essential attributes required for a valid enterprise agreement, including proper negotiation and whether it provided for the resolution of disputes. Additionally, the Commission needed to examine whether the agreement was likely to achieve the outcomes of improved productivity, efficiency, and profitability without disadvantaging employees.

The Fair Work Commission found that the BAE Systems Australia Limited-Williamstown Maritime Agreement 2016-2018 met the necessary criteria for approval. The Commission noted that the agreement was the product of good faith negotiations and contained provisions for the resolution of disputes and other essential attributes. The Commission was satisfied that the agreement was likely to achieve the outcomes of improved productivity, efficiency, and profitability without disadvantaging employees. Consequently, the Commission approved the agreement under section 173 of the Fair Work Act, allowing it to come into effect from the specified date. This decision confirms the agreement as a binding enterprise agreement between BAE Systems Australia Limited and its maritime workforce.

BAE Systems Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established