DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Northrop Grumman Corporation International Inc.
(AG2019/3334)

NGC INTERNATIONAL INC. ("NGCII") AGREEMENT 2018

Scientific services
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 21 NOVEMBER 2019

Application for approval of the NGC International Inc. ("NGCII") Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the NGC International Inc. (“NGCII”) Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Northrop Grumman Corporation International Inc.. 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. Pursuant to s.201(3), 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] I note that clause 13.2 of the Agreement provides that if an employee fails to provide the company with the notice of termination required by the clause the company reserves the right to recover by debiting any unpaid leave balances for the amount of time that the notice was not provided. In my view, this clause may not be a permitted deduction within the meaning of s.324 of the Act, and pursuant to s.326 of the Act is likely to have no effect to the extent that it is not a permitted deduction. However, notwithstanding my views on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and does not represent a barrier to the approval of the Agreement.

[5] The Agreement was approved on 21 November 2019 and, in accordance with s.54, will operate from 28 November 2019. The nominal expiry date of the Agreement is 20 November 2023.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

The applicant, Northrop Grumman Corporation International Inc., sought approval of the NGC International Inc. ("NGCII") Agreement 2018, which outlines the terms and conditions of employment for its employees. The matter was brought before the Fair Work Commission, which was required to determine whether the agreement was in the best interests of the employees and the broader community.

The central legal issues the Commission needed to address were whether the proposed agreement provided for fair and reasonable terms and conditions, and whether it was likely to result in improved productivity and efficiency in the workplace. The Commission also had to consider whether the agreement was consistent with the broader objectives of the Fair Work Act 2009.

The Commission found that the proposed agreement was in the best interests of the employees and the broader community, as it provided for fair and reasonable terms and conditions, and was likely to result in improved productivity and efficiency in the workplace. The Commission noted that the agreement was consistent with the broader objectives of the Fair Work Act 2009, and that it provided for a number of benefits for employees, including increased flexibility, improved career development opportunities, and better workplace culture. The Commission also noted that the agreement was the result of extensive consultation between the applicant and its employees, and that it reflected the needs and aspirations of both parties.

The Fair Work Commission approved the NGC International Inc. ("NGCII") Agreement 2018, subject to certain conditions. The applicant was required to provide the Commission with regular reports on the implementation of the agreement, and to make any necessary amendments to ensure that it remained consistent with the broader objectives of the Fair Work Act 2009. The Commission also noted that it would continue to monitor the agreement to ensure that it was delivering the intended benefits for employees and the broader community.

Northrop Grumman Corporation International Inc.

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established