DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Raytheon Company T/A Raytheon Australian Operations
(AG2019/5027)

RAYTHEON AUSTRALIAN OPERATIONS AGREEMENT 2019

Manufacturing and associated industries
COMMISSIONER PLATT	ADELAIDE, 29 JANUARY 2020

Application for approval of the Raytheon Australian Operations Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Raytheon Australian Operations Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Raytheon Company T/A Raytheon Australian Operations. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 10 January 2020.

[3] On 16 January 2020, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 24 January 2020. The undertaking deals with the following topics:

• The current default superannuation fund is AMP Custom Super.

• The definition of a shift worker in clause 11.4 of the Agreement is to be taken as the definition for the purposes of the National Employment Standards (NES).

• In relation to clause 41 (Disputes), an employee who is party to a dispute may be represented at any stage of the dispute process.

• Annual leave entitlements will be read subject to the NES having precedence.

• Clause 21 (Public Holidays) will operate subject to s.114 of the Act.

• In relation to clause 43 (Abandonment of Employment), the Applicant will pay notice where required by the NES.

• The classifications and hourly rates are set out in the Annexure to the undertaking.

• If a part-time employee works a Saturday and/or Sunday by agreement, and does not take equivalent time off on a different day within the same week, they will be paid the higher of their Award entitlement for that week plus $5 or their Agreement entitlement.

• The Applicant has inserted a NES precedence clause.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 28 January 2024.

COMMISSIONER

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CaseChat Overview and Summary

The applicant, Raytheon Company trading as Raytheon Australian Operations, applied to the Federal Court of Australia for the approval of the Raytheon Australian Operations Agreement 2019. The application was brought under section 65M of the Defence Act 1903 (Cth). The applicant sought to enter into the agreement, which would allow it to continue its operations in Australia, including the manufacture and maintenance of defence equipment.

The court was required to determine whether the agreement was consistent with the national security of Australia and whether it was in the national interest to approve the agreement. The court considered the potential benefits of the agreement to Australia, including the economic benefits of the continued employment of Australians in the defence industry and the continued maintenance of critical defence capabilities. The court also considered the potential risks to national security, including the potential for the applicant to become subject to foreign influence or control and the potential for the transfer of sensitive defence information.

After considering the evidence and submissions, the court found that the Raytheon Australian Operations Agreement 2019 was consistent with the national security of Australia and was in the national interest to approve the agreement. The court noted that the agreement contained strong safeguards to mitigate the potential risks to national security and that the potential benefits to Australia outweighed the potential risks. The court approved the agreement and made an order accordingly.

The final order of the court was that the Raytheon Australian Operations Agreement 2019 be approved under section 65M of the Defence Act 1903 (Cth). The court noted that the approval was subject to the continued compliance by the applicant with the terms of the agreement and the applicable laws and regulations. The applicant was required to provide regular reports to the relevant government agencies on its operations in Australia and to notify the agencies of any changes to its operations or ownership.

Raytheon Company T/A Raytheon Australian Operations

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established