DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Fresenius Medical Care Australia Pty Ltd
(AG2020/3419)

FRESENIUS MEDICAL CARE, SMITHFIELD PRODUCTION, GLOBAL MANUFACTURING QUALITY AND SUPPLY CHAIN ENTERPRISE AGREEMENT 2019-2021

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 24 NOVEMBER 2020

Application for approval of the Fresenius Medical Care, Smithfield Production, Global Manufacturing Quality and Supply Chain Enterprise Agreement 2019-2021

[1] Fresenius Medical Care Australia Pty Ltd has made an application for approval of an enterprise agreement known as the Fresenius Medical Care, Smithfield Production, Global Manufacturing Quality and Supply Chain Enterprise Agreement 2019-2021 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] 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 and 188 as are relevant to this application for approval has been met.

[3] 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) and based on the declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 24 November 2020 and, in accordance with s 54, will operate from 1 December 2020. The nominal expiry date of the Agreement is 31 December 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fresenius Medical Care Australia Pty Ltd, an employer in the manufacturing sector, sought approval of the Fresenius Medical Care, Smithfield Production, Global Manufacturing Quality and Supply Chain Enterprise Agreement 2019-2021. The application was made under section 235 of the Fair Work Act 2009, seeking the Fair Work Commission's (FWC) approval for the proposed enterprise agreement. The application involved various stakeholders, including the employer, its employees, and the union representing the employees.

The primary legal issue before the FWC was whether the proposed enterprise agreement met the criteria for approval under the Fair Work Act. Specifically, the FWC needed to determine if the agreement provided for fair and reasonable terms and conditions of employment, including provisions for minimum rates of pay, maximum hours of work, leave entitlements, and dispute resolution mechanisms. The FWC also needed to consider whether the agreement complied with the "better off overall test," ensuring that employees would not be worse off financially by being covered by the agreement than they would be if they were not.

In delivering its decision, the FWC first examined the agreement's provisions to ensure they met the criteria for approval under the Fair Work Act. The FWC noted that the proposed agreement provided for fair and reasonable terms and conditions of employment, including provisions for minimum rates of pay, maximum hours of work, leave entitlements, and dispute resolution mechanisms. The FWC also considered the "better off overall test" and found that employees would not be worse off financially by being covered by the agreement than they would be if they were not. The FWC concluded that the proposed agreement met the criteria for approval and granted approval for the Fresenius Medical Care, Smithfield Production, Global Manufacturing Quality and Supply Chain Enterprise Agreement 2019-2021. The agreement will now apply to the employees of Fresenius Medical Care Australia Pty Ltd, providing them with the terms and conditions of employment set out in the agreement.

Fresenius Medical Care 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