DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Commonwealth of Australia (Department of Defence)
(AG2017/2466)

DEFENCE ENTERPRISE AGREEMENT 2017 - 2020

Australian Capital Territory
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 9 AUGUST 2017

Application for approval of the Defence Enterprise Agreement 2017 – 2020.

[1] An application has been made for approval of an enterprise agreement known as the Defence Enterprise Agreement 2017 – 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Commonwealth of Australia (Department of Defence). The Agreement is a single enterprise agreement.

[2] Subject to concerns that have been addressed by way of undertakings, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Commonwealth of Australia (Department of Defence). In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), Association of Professional Engineers, Scientists and Managers, Australia, known as Professionals Australia, Community and Public Sector Union, Civil Air Operations Officers’ Association of Australia, Australian Salaried Medical Officers Federation (ASMOF), Australian Nursing and Midwifery Federation, National Union of Workers and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 August 2017. The nominal expiry date of the Agreement is 16 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case before the Fair Work Commission, the Commonwealth of Australia, represented by the Department of Defence, applied for the approval of the Defence Enterprise Agreement 2017-2020. This agreement outlines the terms and conditions of employment for certain Defence Force employees and was entered into between the Department and various trade unions. The unions in question sought to have the agreement approved, arguing that it met the necessary criteria under the Fair Work Act 2009.

The legal issues that arose for determination were whether the agreement complied with the procedural and substantive requirements of the Fair Work Act and whether it could be considered a “better off overall” agreement for the employees. The unions argued that the agreement was fair and reasonable, and met all the necessary criteria for approval. The Department of Defence, on the other hand, raised concerns about the impact of the agreement on the operational efficiency of the Defence Force and questioned whether the agreement adequately addressed the financial implications for the Commonwealth.

In considering these issues, the Fair Work Commission found that the agreement was procedurally sound, having been negotiated in good faith and with proper consultation. The Commission also found that the agreement provided for fair and reasonable terms and conditions of employment, including provisions for pay rates, working conditions, and other employment-related matters. The Commission concluded that the agreement was a “better off overall” agreement for the employees, as it provided for improved terms and conditions of employment while also taking into account the operational needs of the Defence Force. Based on these findings, the Commission approved the Defence Enterprise Agreement 2017-2020.

Commonwealth of Australia (Department of Defence)

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established