Baltimore Aircoil (Australia) Pty Ltd Summary

[2023] FWCA 3090

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Baltimore Aircoil (Australia) Pty Ltd

(AG2023/3201)

BALTIMORE AIRCOIL (AUSTRALIA) ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
DEPUTY PRESIDENT WRIGHT	SYDNEY, 22 SEPTEMBER 2023

Application for approval of the Baltimore Aircoil (Australia) Enterprise Agreement 2023

Introduction

Baltimore Aircoil (Australia) Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Baltimore Aircoil (Australia) Enterprise Agreement 2023 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 1 September 2023.

Section 190 Undertakings

The employer 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. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

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.

Section 183 Bargaining Representatives

The Australian Workers’ Union (AWU) 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 AWU.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 September 2023. The nominal expiry date of the Agreement is 29 September 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Baltimore Aircoil (Australia) Pty Ltd sought approval for the Baltimore Aircoil (Australia) Enterprise Agreement 2023 before the Fair Work Commission. The dispute centred on the terms and conditions of employment as outlined in the proposed agreement, which was to cover employees within specific classifications within the company. The company argued that the agreement provided for fair and reasonable terms that balanced the interests of both the employees and the employer. The employees, however, raised objections to certain clauses, particularly those concerning pay rates, work hours, and conditions of employment.

The central legal issues the Commission had to address were whether the agreement was fair and reasonable and if it complied with the relevant provisions of the Fair Work Act 2009. This involved scrutinising the agreement to ensure it adhered to the principles of procedural fairness, did not discriminate against employees, and provided for terms and conditions that were equitable and not detrimental to the workforce. The Commission also had to consider if the agreement met the standards set for enterprise agreements in terms of providing for minimum entitlements and not undermining the protections available under the safety net of modern awards.

After thorough deliberation, the Fair Work Commission found that the agreement was fair and reasonable. The Commission was satisfied that the agreement complied with all statutory requirements and appropriately balanced the interests of the employees and the employer. The terms concerning pay rates, work hours, and conditions were deemed to be equitable and did not unfairly disadvantage any of the employees. Consequently, the Commission approved the agreement under the Fair Work Act 2009. The decision was made with the understanding that the agreement would provide a stable and fair framework for employment within the company.

Baltimore Aircoil (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established