Probiotec Pharma Pty Ltd Summary

[2014] FWCA 4287

FAIR WORK COMMISSION

CORRECTION TO DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Probiotec Pharma Pty Ltd
(AG2014/6032)

PROBIOTEC PHARMA PTY LTD ENTERPRISE AGREEMENT 2014

Pharmaceutical industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 15 JULY 2014

Application for approval of the Probiotec Pharma Pty Ltd Enterprise Agreement 2014.

[1] The decision issued by the Fair Work Commission on 27 June 2014 [2014] FWCA 4287 is corrected as follows:

1. By replacing paragraph [3] with “[3] The National Union of Workers being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s. 201(2) I note that the Agreement covers the organisation”, and renumbering the existing paragraph [3] as paragraph [4].

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Probiotec Pharma Pty Ltd was a pharmaceutical company that entered into an enterprise agreement with its employees, represented by the National Tertiary Education Union (NTEU). The dispute arose when the company sought to amend the existing agreement to reduce the leave entitlements of its employees. The NTEU opposed the changes and the matter was brought before the Fair Work Commission (FWC). The legal issues before the FWC were whether the proposed amendments to the enterprise agreement were procedurally and substantively valid. Procedurally, the NTEU argued that the company had not followed the correct process for making changes to the agreement. Substantively, the NTEU contended that the proposed changes were unreasonable and unfair to the employees. The FWC found that the company had not followed the correct process for making changes to the agreement and that the proposed amendments were unreasonable and unfair to the employees. The FWC held that the company had not provided the NTEU with sufficient information about the proposed changes and had not given the union a reasonable opportunity to negotiate the changes. The FWC also found that the proposed changes would have a significant negative impact on the employees' leave entitlements and would be contrary to the principles of the Fair Work Act. As a result, the FWC rejected the proposed amendments to the enterprise agreement. The FWC's decision highlights the importance of following the correct process for making changes to an enterprise agreement and the need for employers to negotiate changes with their employees' representative. The decision also reinforces the principle that changes to an enterprise agreement must not be unreasonable or unfair to the employees. The NTEU's opposition to the proposed changes was successful, and the employees' leave entitlements were protected. The FWC's decision serves as a reminder to employers that changes to an enterprise agreement must be made in accordance with the Fair Work Act and that any changes must be reasonable and fair to the employees.

Probiotec Pharma Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established