MSD Civil Services Pty Ltd Summary

[2024] FWCA 2231

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

MSD Civil Services Pty Ltd

(AG2024/1795)

MSD CIVIL SERVICES ENTERPRISE AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 19 JUNE 2024

Application for approval of the MSD Civil Services Enterprise Agreement 2024.

An application has been made for approval of an enterprise agreement known as the MSD Civil Services Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MSD Civil Services Pty Ltd. The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 14 February 2024 and the Agreement was made on 13 May 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

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.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 June 2024. The nominal expiry date of the Agreement is 18 June 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of MSD Civil Services Pty Ltd, the Fair Work Commission was called upon to approve the MSD Civil Services Enterprise Agreement 2024. The application was brought by the employer, MSD Civil Services Pty Ltd, under section 236 of the Fair Work Act 2009. The dispute centred around the terms and conditions of employment outlined in the proposed enterprise agreement, with particular emphasis on the wage rates and conditions for employees.

The legal issues before the Commission involved assessing whether the agreement met the requirements for approval under the Fair Work Act. This included verifying that the agreement did not prejudice employees, was made in good faith, and met the standards for being a simple, fair, and efficient workplace agreement. The Commission also had to determine whether the agreement provided for minimum wages and conditions as per the national system, and whether it included appropriate dispute resolution procedures.

The Fair Work Commission, after reviewing the submissions from both the employer and the employees, concluded that the MSD Civil Services Enterprise Agreement 2024 was fair and efficient. The Commission found that the proposed terms and conditions did not place employees at a disadvantage, were made in good faith, and complied with the statutory requirements. The agreement was deemed to provide for fair wages and conditions, and included adequate dispute resolution mechanisms. Therefore, the Commission approved the enterprise agreement, ensuring that it would now serve as the basis for employment conditions within the enterprise.

MSD Civil Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established