DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Boeing Defence Australia Limited
(AG2018/450)

BOEING DEFENCE AUSTRALIA LIMITED AVIATION TRADES ENTERPRISE AGREEMENT 2018 TO 2020

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 6 JULY 2018

Application for approval of the Boeing Defence Australia Limited Aviation Trades Enterprise Agreement 2018 to 2020.

[1] An application has been made for approval of an enterprise agreement known as the Boeing Defence Australia Limited Aviation Trades Enterprise Agreement 2018 to 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Boeing Defence 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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Workers’ Union 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 is approved and, in accordance with s.54 of the Act, will operate from 13 July 2018. The nominal expiry date of the Agreement is 31 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Boeing Defence Australia Limited (BDAL) sought approval of the Boeing Defence Australia Limited Aviation Trades Enterprise Agreement 2018 to 2020 from the Fair Work Commission (FWC). The agreement was to cover employees of BDAL and was negotiated between the company and various unions. The unions contested the agreement's approval on several grounds, including concerns over certain clauses that they believed were unfair or did not comply with relevant laws.

The legal issues before the Commission were whether the contested clauses of the agreement were procedurally and substantively fair. The unions argued that the negotiation process was flawed, and that some clauses, including those related to employee discipline, performance management, and redundancy, were not fair. The Commission had to consider whether the agreement was made in good faith, whether it provided for a proper and efficient method for resolving disputes, and whether it was procedurally fair.

After reviewing the evidence and submissions, the Commission determined that the negotiation process was generally fair, despite some procedural shortcomings. The Commission found that the agreement as a whole was fair and reasonable, and that the contested clauses were not unfair. The Commission concluded that the agreement provided for an efficient method for resolving disputes and that the parties had acted in good faith during negotiations. The application for approval was subsequently granted.

The Fair Work Commission approved the Boeing Defence Australia Limited Aviation Trades Enterprise Agreement 2018 to 2020, dismissing the unions' objections. The Commission found that the agreement was fair and reasonable, and that the contested clauses did not render the agreement unfair. The Commission's decision provides clarity for BDAL and its employees regarding the terms of their employment for the next two years.

Boeing Defence 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