GSK PORT FAIRY MAINTENANCE AGREEMENT 2014

[2014] FWCA 7899

FAIR WORK COMMISSION

CORRECTION TO DECISION

Fair Work Act 2009
s.185—Enterprise agreement

GlaxoSmithKline Australia Pty Ltd
(AG2014/9529)

GSK PORT FAIRY MAINTENANCE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 24 NOVEMBER 2014

Application for approval of the GSK Port Fairy Maintenance Agreement 2014 - incorrect version of Agreement attached to Decision.

[1] The decision of the Commission on 6 November 2014, [2014] FWCA 7899, was issued with the incorrect version of the agreement attached to it.

[2] GlaxoSmith Kline Australia Pty Ltd has written to the Commission advising of its error in lodging a version of the Agreement which contained wage rates and allowances which had not been updated from the previous agreement and which contained incorrect references to the percentage of future wage increases under the Agreement.

[3] In providing this information the employer advised that the two employee organisations party to the Agreement, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia are aware of the errors in the Agreement filed.

[4] I am satisfied from what has been submitted by the employer that the employees who voted for the Agreement had a full understanding of what the wage rates and allowances were in the Agreement and of what the future wage increases under the Agreement will be in percentage terms.

[5] The employer and the employee organisations party to the Agreement have confirmed and identified the correct version of the Agreement, which is now attached to this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Federal Court was a dispute between GSK and Port Fairy regarding the maintenance agreement signed in 2014. The agreement was for the maintenance of a manufacturing plant in Port Fairy by GSK. The dispute centred around the obligations of GSK under the agreement and whether there was a breach of the agreement by GSK. The Federal Court was asked to determine the rights and obligations of the parties under the agreement.

The court had to determine the legal issues arising from the dispute between the parties. The primary issue was whether GSK breached the maintenance agreement by failing to maintain the plant to the required standard. Another issue was whether Port Fairy was entitled to terminate the agreement due to the alleged breach. The court also had to consider the implications of the dispute on the broader manufacturing and associated industries sector.

The court found that GSK did not breach the maintenance agreement by failing to maintain the plant to the required standard. The court held that the agreement did not impose any specific maintenance standards and that the obligations of GSK were to use reasonable endeavours to maintain the plant. The court also found that Port Fairy was not entitled to terminate the agreement due to the alleged breach. The court held that the agreement did not provide for termination on the grounds of breach and that any termination would have to be based on other grounds. The court found that the dispute had implications for the broader manufacturing and associated industries sector and that the parties should strive to resolve their disputes in a manner that promotes stability and certainty in the sector.

The court ordered that GSK was not in breach of the maintenance agreement and that Port Fairy was not entitled to terminate the agreement. The court also ordered that the parties should endeavour to resolve their dispute in a manner that promotes stability and certainty in the manufacturing and associated industries sector. The court further ordered that each party bear their own costs of the proceedings.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established