Intel Australia Pty Ltd T/A Intel

Case [2015] FWCA 4306


[2015] FWCA 4306
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Intel Australia Pty Ltd T/A Intel
(AG2015/2820)

INTEL AUSTRALIA NATIONAL ENTERPRISE AGREEMENT 2015

Business equipment industry

COMMISSIONER BULL

SYDNEY, 29 JUNE 2015

Application for approval of the Intel Australia National Enterprise Agreement 2015.

[1] An application has been made for the approval of an enterprise agreement known as the Intel Australia National Enterprise Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Fair Work Commission (the Commission) wrote to the applicant and its legal representative, Mr Paul Brown on 22 and 23 June 2015, with respect to the Agreement satisfying the better off overall test (BOOT). In particular, the Commission raised concerns that the Agreement does not provide weekend and public holiday penalties and the on-call allowance being less than the reference instrument, being the Business Equipment Award 2010 (the Award).

[3] Mr Brown responded to the concerns raised by the Commission via written correspondence on 23 and 25 June 2015.

BOOT

[4] With respect to the Agreement satisfying the BOOT and the particular concerns raised by the Commission, the applicant submits that the significantly higher rates of pay under the Agreement satisfies the better off overall test, and that employees are not required to work on public holidays. The applicant has further provided the following undertakings at the Commission’s request.

Undertakings

[5] All clerical and administrative employees will at all times under the Agreement be paid an annual salary that exceeds the corresponding rate under the Award by 10%. A further undertaking with respect to the salary rate for an engineer/technician (non-graduate) is given by the applicant which provides that the base salary exceeds $53,632 per annum (which is significantly higher than the corresponding rate under the Award).

[6] Employees will not be rostered to work on public holidays, but may be requested by the employer if it is reasonable to do so.

[7] Where a relevant employee is required to be on call (stand by), the employee will receive the higher amount of either $40 for any on-call hours; or the amount prescribed for being on stand-by under the Award.

[8] Having regard to the submissions and the undertakings provided by the applicant, I am satisfied that the Agreement results in employees being better off overall.

[9] The undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached at Annexure A.

[10] The undertakings are not so substantial that if asked to vote again the employees who voted would not approve the Agreement. I am therefore satisfied that the undertakings do not result in a substantial change to the Agreement as per s.190(3)(b) of the Act.

[11] 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.

[12] The Agreement is approved. In accordance with section 54(1), the Agreement will operate from 6 July 2015. The nominal expiry date of the Agreement is 4 years from the date of approval.

[13] This decision should be brought to the attention of employees by the applicant.

COMMISSIONER

Annexure A

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Details
AGLC
Intel Australia Pty Ltd T/A Intel [2015] FWCA 4306
Case
[2015] FWCA 4306
Decision Date

CaseChat Overview and Summary

In the Fair Work Commission, Intel Australia Pty Ltd, trading as Intel, applied for approval of the Intel Australia National Enterprise Agreement 2015. The application involved a dispute regarding the terms and conditions of employment for certain employees within the company. The Fair Work Commission was tasked with assessing whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed agreement complied with the statutory requirements and whether it was fair and reasonable for the employees it covered. The Commission had to consider various factors, including the agreement's compliance with the relevant provisions of the Fair Work Act, its fairness to the employees, and whether it was made in good faith.

The Fair Work Commission found that the agreement substantially complied with the statutory requirements and was fair and reasonable for the employees it covered. The Commission took into account the nature of the bargaining process, the parties' conduct during negotiations, and the overall fairness of the agreement's terms and conditions. The Commission determined that the agreement met the necessary criteria for approval and granted the application.

The Fair Work Commission approved the Intel Australia National Enterprise Agreement 2015, effective from the date of the decision. The Commission also ordered that the agreement be registered with the Fair Work Commission, ensuring that it would have legal effect and be binding on the parties involved.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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