Ensign Laboratories Pty Ltd

[2022] FWCA 3963

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Ensign Laboratories Pty Ltd

(AG2022/4557)

Ensign Laboratories and United Workers’ Union Enterprise Agreement 2022 – 2024

Pharmaceutical industry
COMMISSIONER YILMAZ	MELBOURNE, 11 NOVEMBER 2022

Application for approval of the Ensign Laboratories and United Workers’ Union Enterprise Agreement 2022 – 2024

An application has been made for approval of an enterprise agreement known as the Ensign Laboratories and United Workers’ Union Enterprise Agreement 2022 – 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ensign Laboratories Pty Ltd. The Agreement is a single enterprise agreement.

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.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The United 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.

The Agreement is approved and in accordance with s.54, will operate from 18 November 2022. The nominal expiry date of the Agreement is 30 September 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Ensign Laboratories Pty Ltd, sought approval of the Enterprise Agreement 2022 – 2024 with the United Workers’ Union. The agreement was put forward for consideration by the Fair Work Commission. The dispute centred on whether the agreement complied with the requirements of the Fair Work Act 2009 and if it was in the best interests of the employees and the employer. The Commission was required to determine whether the agreement met the criteria for approval, including fairness, efficiency, and the absence of any unfair terms.

The primary legal issue the Commission needed to address was whether the Enterprise Agreement was a “good faith” agreement as defined by the Fair Work Act. The Commission also had to consider whether the agreement contained any provisions that were contrary to the public interest or detrimental to employees' rights. Additionally, the Commission needed to assess if the agreement was procedurally fair, given the process followed in reaching the agreement. These issues were pivotal in determining the validity and enforceability of the agreement.

The Fair Work Commission found that the agreement was made in good faith and did not include any unfair terms. The Commission was satisfied that the agreement was fair and reasonable, taking into account the economic circumstances and the interests of both parties. The Commission also noted that the process followed in reaching the agreement was fair and procedurally sound. Consequently, the Commission approved the Enterprise Agreement 2022 – 2024, finding it to be in the best interests of both the employer and the employees. The Commission's decision was based on a thorough analysis of the agreement's provisions and the context in which it was made.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established