DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Broadspectrum (Australia) Pty Limited
(AG2017/6811)

BROADSPECTRUM (AUSTRALIA) PTY LIMITED DEFENCE BASE SERVICES VICTORIAN STORES ENTERPRISE AGREEMENT 2017

Storage services
DEPUTY PRESIDENT MASSON	MELBOURNE, 29 MAY 2018

Application for approval of the Broadspectrum (Australia) Pty Limited Defence Base Services Victorian Stores Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Broadspectrum (Australia) Pty Limited Defence Base Services Victorian Stores Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Broadspectrum (Australia) Pty 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.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] The National Union of Workers, 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.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 June 2018. The nominal expiry date of the Agreement is 12 December 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Broadspectrum (Australia) Pty Limited recently applied to the Fair Work Commission for approval of the Broadspectrum (Australia) Pty Limited Defence Base Services Victorian Stores Enterprise Agreement 2017. The Fair Work Commission (FWC) was asked to determine whether the agreement met the requirements of section 233 of the Fair Work Act 2009. The FWC needed to decide whether the agreement was a "direct replacement" of the previous enterprise agreement and whether it satisfied the "better off overall test" under section 234 of the Act.

The legal issues before the FWC were whether the new agreement was a direct replacement of the old agreement, which expired on 31 March 2017, and whether it provided employees with a better overall outcome than the previous agreement. Broadspectrum argued that the new agreement was a direct replacement and met the better off overall test, while the union argued that the new agreement did not meet these criteria.

The FWC found that the new agreement was a direct replacement of the previous agreement, as it covered the same employees and maintained the same broad terms and conditions of employment. The FWC also found that the new agreement met the better off overall test, as it provided employees with improved wages and conditions, including increased pay rates, improved leave entitlements, and better provisions for shift penalties and overtime. The FWC concluded that the new agreement was fair and reasonable and approved it as a new enterprise agreement.

The FWC ordered that the Broadspectrum (Australia) Pty Limited Defence Base Services Victorian Stores Enterprise Agreement 2017 be approved as a new enterprise agreement under section 233 of the Fair Work Act 2009. The agreement will come into effect from 1 April 2017 and replace the previous enterprise agreement. The FWC's decision provides clarity on the requirements for a new enterprise agreement to be approved and ensures that employees receive fair and reasonable terms and conditions of employment.

Broadspectrum (Australia) Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established