DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Broadspectrum (Australia) Pty Ltd T/A Broadspectrum
(AG2018/384)

BROADSPECTRUM DEFENCE STORES SYDNEY AND CENTRAL/NORTHERN NSW AGREEMENT 2017

Storage services
COMMISSIONER MCKINNON	MELBOURNE, 29 MAY 2018

Application for approval of the Broadspectrum Defence Stores Sydney and Central/Northern NSW Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Broadspectrum Defence Stores Sydney and Central/Northern NSW 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 Ltd T/A Broadspectrum. 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, have 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 28 May 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Broadspectrum (Australia) Pty Ltd, trading as Broadspectrum, applied to the Fair Work Commission for the approval of the Broadspectrum Defence Stores Sydney and Central/Northern NSW Agreement 2017. The applicant, Broadspectrum, is an employer with employees in the defence industry, and the dispute involved the terms of the proposed enterprise agreement. The Commission was tasked with determining whether the agreement met the necessary criteria for approval, including whether it provided for the appropriate process for resolving disputes between the employer and employees.

The legal issues before the Commission centred on the provisions of the proposed agreement, particularly whether they complied with the requirements of the Fair Work Act 2009. Key issues included whether the agreement provided for an appropriate dispute resolution process, and whether the agreement met the "better off overall test" to ensure that no employee would be worse off financially under the new agreement. Additionally, the Commission considered whether the agreement had been made in good faith and whether it contained the mandatory terms as prescribed by the Act.

The Commission found that the Broadspectrum Defence Stores Sydney and Central/Northern NSW Agreement 2017 did not adequately provide for an appropriate dispute resolution process, as required by the Fair Work Act. The agreement failed to specify a clear and accessible process for resolving disputes, which is a critical component of a valid enterprise agreement. Consequently, the Commission did not approve the agreement. The Commission highlighted the importance of clear and accessible dispute resolution processes in enterprise agreements to ensure that employees have effective means to address their grievances.

The Fair Work Commission did not approve the Broadspectrum Defence Stores Sydney and Central/Northern NSW Agreement 2017 due to its failure to provide for an appropriate dispute resolution process. The Commission's decision underscores the necessity for enterprise agreements to include clear and accessible mechanisms for resolving disputes to comply with the Fair Work Act.

Broadspectrum (Australia) Pty Ltd T/A Broadspectrum

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established