DECISION

Fair Work Act 2009
s.185—Enterprise agreement

GlaxoSmithKline Australia Pty Ltd T/A GlaxoSmithKline
(AG2021/5032)

GLAXOSMITHKLINE (BORONIA), UWU AND AMWU ENTERPRISE AGREEMENT 2020

Pharmaceutical industry
COMMISSIONER WILSON	MELBOURNE, 28 MAY 2021

Application for approval of the GlaxoSmithKline (Boronia), UWU and AMWU Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the GlaxoSmithKline (Boronia), UWU and AMWU Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by GlaxoSmithKline Australia Pty Ltd T/A GlaxoSmithKline. The Agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the United Workers’ Union, 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 4 June 2021. The nominal expiry date of the Agreement is 30 June 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of GlaxoSmithKline Australia Pty Ltd T/A GlaxoSmithKline, the Fair Work Commission (FWC) was tasked with approving an enterprise agreement proposed by the company and two trade unions. The agreement in question was intended to cover the employees of the company's Boronia site. The unions involved were the United Workers Union (UWU) and the Australian Manufacturing Workers Union (AMWU). The nature of the dispute centred on whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed enterprise agreement complied with the relevant provisions of the Act. This included examining if the agreement contained mandatory terms, if it adhered to procedural fairness, and if it met the "better off overall test" (BOOT). This test requires that the terms of the agreement be at least as good as the applicable awards or the general industrial conditions, ensuring that employees are not disadvantaged by the new agreement.

In its reasoning, the FWC first assessed the procedural fairness of the agreement, confirming that the appropriate consultation processes were followed and that the agreement was genuinely negotiated. The Commission then examined the mandatory terms, ensuring they were consistent with the Fair Work Act. The FWC also evaluated if the agreement satisfied the BOOT, considering factors such as wages, leave entitlements, and other benefits. Ultimately, the FWC found that the agreement met all statutory requirements and was approved.

Consequently, the Fair Work Commission approved the GlaxoSmithKline (Boronia) UWU and AMWU Enterprise Agreement 2020, confirming its compliance with the Fair Work Act. This decision highlights the importance of thorough consultation and negotiation in the enterprise agreement process, as well as the necessity for agreements to meet the statutory criteria for approval.

GlaxoSmithKline Australia Pty Ltd T/A GlaxoSmithKline

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established