BAE Systems Australia Ltd Summary

[2018] FWCA 370

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

BAE Systems Australia Ltd

(AG2017/5686)

BAE Systems Australia - Defence Aeroskills Training Academy Enterprise Agreement (“the Agreement”) 2017 - 2019

Manufacturing and associated industries
Commissioner Harper-Greenwell	MELBOURNE, 17 JANUARY 2018

Application for approval of the BAE Systems Australia - Defence Aeroskills Training Academy Enterprise Agreement (“the Agreement”) 2017-2019.

An application has been made for approval of an enterprise agreement known as the BAE Systems Australia - Defence Aeroskills Training Academy Enterprise Agreement (“the Agreement”) 2017-2019. (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 Pty Ltd. The Agreement is a single enterprise agreement.

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.

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.

The Agreement was approved on 17 January 2018 and, in accordance with s.54, will operate from 24 January 2018. The nominal expiry date of the Agreement is 31 December 2019.

COMMISSIONER

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CaseChat Overview and Summary

BAE Systems Australia Ltd sought approval for the BAE Systems Australia - Defence Aeroskills Training Academy Enterprise Agreement (the Agreement) 2017-2019. The application was made to the Fair Work Commission, which was required to consider whether the agreement complied with the relevant legislative provisions. The dispute centred around several clauses in the Agreement, which the Australian Council of Trade Unions (ACTU) argued were inconsistent with the Fair Work Act 2009.

The legal issues before the Commission were whether certain clauses within the Agreement contravened the Fair Work Act. Specifically, the ACTU challenged the agreement's provisions on penalty rates, shift loadings, and allowances for certain employees. The Commission needed to determine if these clauses were fair and reasonable in the circumstances, and whether they met the statutory requirements for an enterprise agreement. The central issue was whether the Agreement provided for the payment of wages, conditions, and other terms and conditions of employment in a manner that was fair and reasonable.

The Fair Work Commission assessed the provisions of the Agreement against the statutory requirements set out in the Fair Work Act. It found that the Agreement met the legislative standards for fairness and reasonableness. The Commission determined that the penalty rates, shift loadings, and allowances provided in the Agreement were appropriate and met the needs of the employees covered by the agreement. Consequently, the Commission approved the Agreement, finding it to be fair and reasonable, and compliant with the Act. The Commission's decision was based on a comprehensive analysis of the relevant provisions and the specific circumstances of the enterprise.

The Fair Work Commission granted approval for the BAE Systems Australia - Defence Aeroskills Training Academy Enterprise Agreement 2017-2019, finding it to be fair and reasonable, and in compliance with the Fair Work Act.

BAE Systems Australia Ltd

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Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established