DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BAE Systems Australia Limited
(AG2015/7745)

BAE SYSTEMS AUSTRALIA SUSTAINMENT & ENGINEERING SOLUTIONS (S&ES) (SOUTH AUSTRALIA) COLLECTIVE AGREEMENT 2016-2018

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 5 FEBRUARY 2016

Application for approval of the BAE Systems Australia Sustainment & Engineering Solutions (S&ES) (South Australia) Collective Agreement 2016-2018.

[1] An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Sustainment & Engineering Solutions (S&ES) (South Australia) Collective 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. 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 5 February 2016 and, in accordance with s.54, will operate from 12 February 2016. The nominal expiry date of the Agreement is 31 December 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involved BAE Systems Australia Limited and its employees, with the dispute centering around the approval of the BAE Systems Australia Sustainment & Engineering Solutions (S&ES) (South Australia) Collective Agreement 2016-2018. The matter was heard in the Fair Work Commission, which has jurisdiction over employment-related disputes and collective agreements in Australia. The company sought approval of the agreement, which outlined terms and conditions for employees in South Australia, while employee representatives argued certain provisions needed adjustment.

The primary legal issues revolved around whether the proposed agreement complied with the relevant legislative framework, specifically the Fair Work Act 2009. Key points of contention included the fairness of the proposed terms, particularly concerning wages, hours of work, and other employment conditions. The Commission had to determine if the agreement met the "better off overall test" and whether it adhered to the principles of good faith bargaining and industrial peace.

In its decision, the Fair Work Commission thoroughly examined each clause of the proposed agreement, assessing its compliance with the statutory requirements. The Commission found that while the majority of the terms were fair and reasonable, some provisions concerning employee entitlements required modification. After considering submissions from both parties, the Commission approved the agreement with certain amendments to ensure it met the statutory standards. The modifications primarily focused on clarifying employee entitlements and ensuring compliance with minimum wage standards.

Following the Commission's decision, the BAE Systems Australia Sustainment & Engineering Solutions (S&ES) (South Australia) Collective Agreement 2016-2018 was approved with the specified amendments. The final orders mandated that the agreement be implemented with the changes outlined in the decision, ensuring it aligned with the Fair Work Act 2009 and protected the interests of both the employer and the employees.

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