DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BAE Systems Australia Limited
(AG2015/5105)

BAE SYSTEMS AUSTRALIA (TOWNSVILLE) COLLECTIVE AGREEMENT 2015-2018

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 27 OCTOBER 2015

Application for approval of the BAE Systems Australia (Townsville) Collective Agreement 2015-2018.

[1] An application has been made for approval of an enterprise agreement known as the BAE Systems Australia (Townsville) Collective Agreement 2015-2018 (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] 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.

[5] The Agreement was approved on 27 October 2015 and, in accordance with s.54, will operate from 3 November 2015. The nominal expiry date of the Agreement is 1 July 2018

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent matter of BAE Systems Australia Limited, the Fair Work Commission was called upon to approve a proposed collective agreement between the applicant company and its employees. The agreement, known as the BAE Systems Australia (Townsville) Collective Agreement 2015-2018, was the subject of an application for approval under the Fair Work Act 2009. The applicant, BAE Systems Australia Limited, sought to have the agreement approved as a registered agreement, which would provide a legal framework for the employment conditions of the employees covered by the agreement.

The legal issues before the Commission centred around whether the proposed agreement complied with the requirements of the Fair Work Act and the Fair Work Regulations 2009. Specifically, the Commission had to consider whether the agreement provided for terms and conditions of employment that were no less favourable than the applicable award or modern award, and whether the agreement complied with any other relevant legislative provisions. Additionally, the Commission had to be satisfied that the agreement had been made in good faith and that the appropriate procedural requirements had been followed.

In delivering its decision, the Fair Work Commission examined the provisions of the proposed agreement in detail, comparing them with the relevant award provisions and other legislative requirements. The Commission found that the agreement did indeed provide terms and conditions of employment that were at least as favourable as those provided for in the applicable award, and that the agreement met all other legislative requirements. Furthermore, the Commission was satisfied that the agreement had been made in good faith and that the appropriate procedural steps had been followed. Consequently, the Commission approved the BAE Systems Australia (Townsville) Collective Agreement 2015-2018 as a registered agreement.

In approving the agreement, the Fair Work Commission provided a detailed analysis of the terms and conditions contained within the agreement, along with its reasons for finding that the agreement met all the statutory requirements for registration. The Commission's decision serves as a useful guide for employers and employees alike when negotiating and drafting collective agreements, ensuring that they are compliant with the relevant legislative provisions.

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