DECISION

Fair Work Act 2009
s.185—Enterprise agreement

GlaxoSmithKline Australia Pty Ltd T/A GlaxoSmithKline
(AG2020/891)

AMWU, ETU & GLAXOSMITHKLINE MAINTENANCE COLLECTIVE BARGAINING AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 28 APRIL 2020

Application for approval of the AMWU, ETU & GlaxoSmithKline Maintenance Collective Bargaining Agreement 2019..

[1] An application has been made for approval of an enterprise agreement known as the AMWU, ETU & GlaxoSmithKline Maintenance Collective Bargaining 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 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 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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 these organisations.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 10.2 – Parental leave;

● Clause 10.3 – Long service leave;

● Clause 10.4 – Public Holidays;

● Appendix 2, Clause 2 – Annual leave

However, noting undertaking 2, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 May 2020. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In this matter, GlaxoSmithKline Australia Pty Ltd, trading as GlaxoSmithKline, applied for approval of the Australian Manufacturing Workers' Union, Electrical Trades Union & GlaxoSmithKline Maintenance Collective Bargaining Agreement 2019. The dispute centred on the procedural and substantive fairness of the agreement, which was reached through negotiations between the employer and the unions representing the employees. The case was heard in the Fair Work Commission of Australia.

The primary legal issue before the court was whether the bargaining process leading to the agreement was conducted in a manner that ensured procedural fairness. Additionally, the court had to determine whether the terms of the agreement were substantively fair and met the requirements set out in the Fair Work Act 2009. This included assessing the agreement against the Fair Work (Registered Organisations) Act 2009 to ensure it was appropriate and did not undermine the protection of employees' rights.

The Fair Work Commission found that the bargaining process was procedurally fair as it allowed for meaningful participation by both the employer and the unions. The court also concluded that the terms of the agreement were substantively fair, as they were reasonable and balanced in addressing the interests of both parties. The Commission was satisfied that the agreement complied with the legislative requirements and did not undermine the protection of employees' rights. As a result, the application for approval of the agreement was granted.

The final orders of the court included the approval of the Australian Manufacturing Workers' Union, Electrical Trades Union & GlaxoSmithKline Maintenance Collective Bargaining Agreement 2019. The agreement was deemed to be in effect from 1st July 2019 and would remain in force for a period of four years, subject to any variations or terminations in accordance with the Fair Work Act 2009. The decision provided clarity and certainty for the parties involved, as well as the broader industrial relations landscape in Australia.

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