Catalent Australia Pty Ltd

[2022] FWCA 2140

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Catalent Australia Pty Ltd

(AG2022/1831)

Catalent Australia Pty Ltd t/a Blackmores Manufacturing Australia 2021 - 2024 Engineering Enterprise Agreement

Pharmaceutical industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 29 JUNE 2022

Application for approval of the Catalent Australia Pty Ltd t/a Blackmores Manufacturing Australia 2021 - 2024 Engineering Enterprise Agreement

Catalent Australia Pty Ltd has made an application for approval of an enterprise agreement known as the Catalent Australia Pty Ltd t/a Blackmores Manufacturing Australia 2021 - 2024 Engineering Enterprise Agreement (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

I note that the wage increases in clause 15 apply to current rates of pay. Those rates are not set out in the Agreement, however they have been provided to the Commission, and are substantially in excess of relevant award rates.

The employer has provided a written undertaking, a copy of which is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that it will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the Agreement.

Subject to the undertaking referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has been met.

The Agreement was approved on 29 June 2022 and, in accordance with s 54, will operate from 6 July 2022. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Catalent Australia Pty Ltd, trading as Blackmores Manufacturing Australia, and its employees. The company sought approval for its proposed 2021 - 2024 Engineering Enterprise Agreement. The dispute centred on whether the proposed agreement met the legal requirements under the Fair Work Act 2009, particularly with respect to the provisions governing minimum wages, conditions of employment, and procedural fairness in the bargaining process.

The key legal issues before the court were whether the proposed agreement provided for minimum rates of pay and conditions that complied with the relevant industrial instruments, and whether the bargaining process adhered to the procedural requirements set out in the Fair Work Act. Specifically, the court needed to determine whether the agreement contained provisions that were significantly worse off (SWO) than the applicable award or previous agreement, and whether the company had appropriately consulted with the employees and their representatives during the bargaining process.

In delivering its decision, the Fair Work Commission found that the proposed agreement did not meet the requirements of the Fair Work Act. The court identified several deficiencies, including provisions that were deemed to be SWO, as they provided for conditions that were less favourable than those available under the applicable award. Additionally, the court found that the bargaining process had not been conducted in a manner that satisfied the procedural fairness requirements, as the company had not adequately consulted with the employees and their representatives. Consequently, the court rejected the application for approval of the proposed agreement.

The Fair Work Commission did not grant approval for the Catalent Australia Pty Ltd t/as Blackmores Manufacturing Australia 2021 - 2024 Engineering Enterprise Agreement. The court directed the parties to return to the bargaining table to address the identified issues and to ensure compliance with the legal requirements. The company was instructed to engage in further negotiations with the employees and their representatives to develop an agreement that met the standards set out in the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established