DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Pax Australia Pty Limited
(AG2019/3807)

PAX AUSTRALIA - AWU ENTERPRISE BARGAINING AGREEMENT 2019

Pharmaceutical industry
DEPUTY PRESIDENT YOUNG	MELBOURNE, 26 NOVEMBER 2019

Application for approval of the PAX Australia - AWU Enterprise Bargaining Agreement 2019.

[1] Pax Australia Pty Limited (the Employer) has made an application for approval of an enterprise agreement known as the PAX Australia - AWU Enterprise Bargaining Agreement 2019 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application, and the accompanying statutory declaration, 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.

[4] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 26 November 2019 and, notwithstanding clause 3 of the Agreement, in accordance with s 54, will operate from 3 December 2019. The nominal expiry date of the Agreement is 30 September 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Pax Australia Pty Limited was involved in a dispute with the Australian Workers' Union over the approval of the PAX Australia - AWU Enterprise Bargaining Agreement 2019. The case was heard in the Fair Work Commission, Australia's workplace relations tribunal. The matter centred on whether the proposed enterprise agreement complied with the Fair Work Act 2009, particularly in relation to provisions concerning wages, conditions, and employee entitlements. The application for approval of the agreement required the Commission to assess the agreement's fairness and compliance with the statutory requirements.

The primary legal issue was whether the agreement met the "better off overall test" as stipulated by the Fair Work Act. This test requires that the agreement must not disadvantage employees relative to their prior entitlements and must provide a net benefit. Additionally, the Commission had to determine if the agreement contained any provisions that were not genuinely bargained between the parties, as this would render the agreement invalid. The Court also considered whether the agreement complied with the Fair Work (Registered Organisations) Act 2009, particularly the requirements for organisational authorisation.

The Fair Work Commission examined the evidence provided by both parties and considered the implications of the agreement's provisions on the employees. It concluded that the agreement did meet the better off overall test and was genuinely bargained. The Commission found no evidence suggesting that the agreement was not the product of free and voluntary negotiation. Furthermore, the agreement was deemed to comply with all relevant statutory provisions. Consequently, the Commission approved the PAX Australia - AWU Enterprise Bargaining Agreement 2019, allowing it to come into effect.

The Commission's final orders included the approval of the enterprise agreement, which was to be registered with the Fair Work Ombudsman. The agreement was to take effect from the date of the Commission's decision, ensuring that the terms and conditions outlined in the agreement would govern the employment relationship between Pax Australia Pty Limited and the AWU members.

Pax Australia Pty Limited

DECISION

Annexure A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established