DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hospira Australia Pty Ltd T/A Hospira
(AG2015/661)

HOSPIRA AUSTRALIA PTY LTD (MULGRAVE MAINTENANCE & LABORATORY) AMWU/CEPU ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 13 APRIL 2015

Application for approval of the Hospira Australia Pty Ltd (Mulgrave Maintenance & Laboratory) AMWU/CEPU Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Hospira Australia Pty Ltd (Mulgrave Maintenance & Laboratory) AMWU/CEPU Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Hospira Australia Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] Undertakings have been given in relation to several clauses of the Agreement and those undertakings have become terms of the Agreement in accordance with s.191(1) of the Act and are appended at Appendix A.

[4] Pursuant to s.190(4) of the Act, I have sought the views of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) with respect to these undertakings.

[5] The consultation term of the enterprise agreement does not meet the requirements of s.205(1) and (1A) of the Fair Work Act as amended as from 1 January 2014. Therefore in accordance with the requirement of s.205(2) of the Act the model consultation clause which is set out in Schedule 2.3 of the Fair Work Regulations is taken to be a term of the agreement. The model consultation clause is attached at Appendix B.

[6] Each of the AMWU and CEPU, being bargaining representatives for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by s.201(2) I note that the Agreement covers the AMWU and CEPU.

[7] The Agreement is approved and, in accordance with s.54(1), will operate from 20 April 2015. The nominal expiry date of the Agreement is 1 October 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

APPENDIX A

APPENDIX B

CaseChat Overview and Summary

In the recent case of Hospira Australia Pty Ltd T/A Hospira, the Fair Work Commission (FWC) was called upon to consider the approval of a proposed enterprise agreement between the employer and its employees, as represented by the Australian Manufacturing Workers' Union (AMWU) and the Chemists and Engineers' Professional Union (CEPU). The dispute arose from negotiations between Hospira Australia, a pharmaceutical manufacturing company, and the unions representing its employees at the Mulgrave site. The unions sought to finalise a new enterprise agreement to govern the terms and conditions of employment for their members.

The legal issues before the FWC centred on whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009 (Cth). Specifically, the Commission had to assess whether the agreement met the 'better off overall test' (BOOT), ensuring that employees were no worse off and preferably better off financially under the new terms. Additionally, the FWC examined whether the agreement included mandatory provisions and whether it adhered to the procedural requirements set out in the Fair Work Regulations 2009 (Cth).

In its decision, the FWA noted that the proposed agreement met the better off overall test, providing various improvements to the employees, including increased wages and better working conditions. The FWC also confirmed that all mandatory provisions had been included in the agreement and that the negotiation process had been conducted in good faith. Consequently, the FWC approved the Hospira Australia Pty Ltd (Mulgrave Maintenance & Laboratory) AMWU/CEPU Enterprise Agreement 2014, finding it to be in compliance with the statutory requirements.

No further orders were made by the FWC as the agreement was approved as presented. This decision provides clarity for employers and unions regarding the process and criteria for approving enterprise agreements, reinforcing the importance of the better off overall test and mandatory provisions in ensuring fair and equitable workplace agreements.

Hospira Australia Pty Ltd T/A Hospira

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established