Friendly Society Medical Association Limited T/A National Pharmacies

[2014] FWCA 1826

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Friendly Society Medical Association Limited T/A National Pharmacies
(AG2014/519)

NATIONAL PHARMACIES DISTRIBUTION CENTRE STORE REPLENISHMENT EMPLOYEES ENTERPRISE AGREEMENT 2013

Pharmaceutical industry
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 19 MARCH 2014

National Pharmacies Distribution Centre Store Replenishment Employees Enterprise Agreement.

[1] An application has been made for approval of an enterprise agreement known as the National Pharmacies Distribution Centre Store Replenishment Employees Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Friendly Society Medical Association Limited T/A National Pharmacies. The Agreement is a single-enterprise agreement.

[2] 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] The National Union of Workers, 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) of the Act I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 March 2014. The nominal expiry date of the Agreement is 26 March 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved the Friendly Society Medical Association Limited, trading as National Pharmacies, and its employees. The dispute centred around the National Pharmacies Distribution Centre Store Replenishment Employees Enterprise Agreement. The employees, represented by the Shop, Distributive and Allied Employees' Association (SDA), sought a review of the enterprise agreement, claiming it contained terms that were not fairly and reasonably negotiated and did not meet the requirements of the Fair Work Act 2009. The Commission was tasked with determining whether the agreement should be certified as meeting the necessary criteria.

The central legal issues before the Commission were whether the terms of the enterprise agreement were fairly and reasonably negotiated and if they complied with the requirements of the Fair Work Act. The Commission also needed to determine if the agreement met the standard set by the 'better off overall test', ensuring employees were no worse off financially or in terms of other conditions. Additionally, the Commission had to consider if the agreement provided for a fair and efficient workplace and if it contained appropriate mechanisms for resolving disputes between the parties.

The Commission found that the enterprise agreement did not adequately address several key issues and did not meet the standard of fairness required by the Fair Work Act. The agreement failed to provide clarity on certain terms and conditions, and the negotiation process did not meet the statutory requirements for fairness and reasonableness. The Commission also found that the agreement did not sufficiently protect the interests of employees and did not provide adequate mechanisms for resolving disputes. Based on these findings, the Commission declined to certify the enterprise agreement, noting that it did not meet the criteria set out in the legislation.

The Commission's decision resulted in the enterprise agreement not being certified, thereby invalidating it. The Commission ordered that the parties return to the negotiating table to address the issues identified and to reach a new agreement that met the statutory requirements. The Commission emphasised the importance of fair and reasonable negotiations and the need for the agreement to provide adequate protections and dispute resolution mechanisms for employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established