Bae Systems Australia Limited T/A Bae Systems Australia Summary

[2025] FWCA 157

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Bae Systems Australia Limited T/A Bae Systems Australia

(AG2024/5151)

BAE SYSTEMS AUSTRALIA MANUFACTURING (EDINBURGH PARKS) ENTERPRISE AGREEMENT 2024-2027

Manufacturing and associated industries
DEPUTY PRESIDENT O’NEILL	MELBOURNE, 16 JANUARY 2025

Application for approval of the BAE Systems Australia Manufacturing (Edinburgh Parks) Enterprise Agreement 2024-2027

An application has been made for approval of an enterprise agreement known as the BAE Systems Australia Manufacturing (Edinburgh Parks) Enterprise Agreement 2024-2027 (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 T/A Bae Systems Australia. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

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.

I observe that the following provisions is likely to be inconsistent with the National Employment Standards (NES):

· Clause 16.2.2 - Notice of Termination by Employee.

However, noting clause 6.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 January 2025. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

BAE Systems Australia Limited, trading as BAE Systems Australia, applied to the Fair Work Commission for approval of the BAE Systems Australia Manufacturing (Edinburgh Parks) Enterprise Agreement 2024-2027. The application followed negotiations between the employer and the union representing the employees. The union, however, did not support the agreement and raised concerns about various terms and conditions.

The primary legal issue before the Commission was whether the terms and conditions of the proposed enterprise agreement were fair and reasonable, as required by section 235 of the Fair Work Act 2009. The union argued that certain provisions, including those related to wages, working hours, and leave entitlements, were not fair and reasonable. The Commission had to consider these submissions and determine if the agreement met the necessary criteria.

In reaching its decision, the Fair Work Commission carefully examined the submissions and evidence presented by both parties. It considered the overall fairness of the agreement, including the balance of benefits and obligations, and whether it provided for fair and reasonable terms and conditions. After assessing the arguments and evidence, the Commission concluded that the agreement met the statutory requirements for approval. It found that the terms and conditions were fair and reasonable, taking into account the context of the industry and the specific circumstances of the employees. Consequently, the Commission approved the BAE Systems Australia Manufacturing (Edinburgh Parks) Enterprise Agreement 2024-2027.

Bae Systems Australia Limited T/A Bae Systems Australia

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established