DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Chemring Australia Pty Ltd
(AG2019/2625)

CHEMRING AUSTRALIA PTY. LTD. COLLECTIVE AGREEMENT 2018 - 2021

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 9 SEPTEMBER 2019

Application for approval of the Chemring Australia Pty. Ltd. Collective Agreement 2018 - 2021.

[1] An application has been made for approval of an enterprise agreement known as the Chemring Australia Pty. Ltd. Collective Agreement 2018 - 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Chemring Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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. The undertakings are taken to be a term of 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 16 September 2019. The nominal expiry date of the Agreement is 31 October 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Chemring Australia Pty Ltd, a company involved in the manufacture of ammunition, sought approval of a collective agreement that was to govern the terms and conditions of employment for its employees over the period 2018 to 2021. The Australian Industrial Relations Commission was tasked with considering whether the proposed agreement complied with the relevant provisions of the Fair Work Act 2009. The matter arose as the company and its employees, represented by the Manufacturing and Associated Industries and Services Union of Australia, had reached a negotiated agreement but required formal approval from the Commission to ensure its enforceability.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements for approval under section 232 of the Fair Work Act. This involved examining whether the agreement adhered to the good faith bargaining provisions, contained the necessary minimum terms and conditions, and was in the best interests of the employees. The Commission had to ensure that the agreement was not only a product of genuine negotiations but also provided fair and reasonable terms for the workforce.

In its decision, the Commission found that the agreement satisfied the statutory criteria. The evidence presented indicated that the bargaining process was conducted in good faith, and the terms and conditions proposed were fair and reasonable. The Commission highlighted that the agreement included provisions that met the minimum standards prescribed by the Fair Work Act and were beneficial to the employees. Consequently, the Commission approved the Chemring Australia Pty Ltd Collective Agreement 2018 - 2021, affirming that it met the necessary legal standards for enforceability. The Commission’s decision was grounded in the evidence of fair and reasonable terms, as well as compliance with the statutory requirements for collective agreements.

Chemring Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established