DECISION

Fair Work Act 2009
s.185—Enterprise agreement

CSL Limited
(AG2020/335)

CSL MET AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 24 FEBRUARY 2020

Application for approval of the CSL MET Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the CSL MET Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by CSL Limited. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] I observe that Part 6, clauses 1 and 4.2 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting Part 1, Clause 5 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) 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 was approved on 24 February 2020 and, in accordance with s.54, will operate from 2 March 2020. The nominal expiry date of the Agreement is 31 August 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

CSL Limited, an entity involved in the manufacture of therapeutic goods, was before the Fair Work Commission (FWC) to seek approval of the CSL MET Agreement 2019. The agreement sought to establish a new enterprise agreement (EA) for employees classified under the Manufacturing, Engineering and Trades (MET) classification. The dispute centred on whether the proposed agreement met the requirements of the Fair Work Act 2009 (Cth) and the FWC's approval criteria.

The primary legal issue before the FWC was whether the CSL MET Agreement 2019 complied with the procedural and substantive requirements set forth by the Fair Work Act. This involved examining whether the agreement was made in good faith, whether it was fairly negotiated, and whether it met the 'better off overall test' (BOOT). The Commission also needed to consider whether the proposed agreement satisfied the FWC's public interest considerations, particularly in the context of public health and safety.

The FWC found that the CSL MET Agreement 2019 was made in good faith and was the product of fair negotiations. It noted that the agreement provided for appropriate wage increases and included provisions for employee entitlements, leave, and dispute resolution mechanisms. The Commission determined that employees would be better off overall by the terms of the agreement, as the financial benefits and other improvements outweighed the disadvantages. Additionally, the FWC considered the public interest aspects, particularly the importance of CSL's role in producing therapeutic goods, and concluded that the agreement did not pose any significant public detriment. Consequently, the FWC approved the CSL MET Agreement 2019.

The FWC's final order was to approve the CSL MET Agreement 2019, effective from 1 April 2020. The agreement was to apply to employees classified under the MET classification within CSL Limited. The decision provided clarity on the FWC's approach to approving enterprise agreements in the context of public health and safety, reinforcing the importance of balancing employee interests with broader public considerations.

CSL Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established