Safran Helicopter Engines Australia Pty Ltd T/A Safran Helicopter Engines Australia Pty Limited

Case [2023] FWCA 752


[2023] FWCA 752

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Safran Helicopter Engines Australia Pty Ltd T/A Safran Helicopter Engines Australia Pty Limited

(AG2023/116)

SAFRAN Helicopter Engines Australia Pty Ltd Enterprise Agreement (Warehouse) 2023

Miscellaneous

DEPUTY PRESIDENT EASTON

SYDNEY, 8 MARCH 2023

Application for approval of the Safran Helicopter Engines Australia Pty Ltd Enterprise Agreement (Warehouse) 2023.

  1. Safran Helicopter Engines Australia Pty Ltd T/A Safran Helicopter Engines Australia Pty Limited (the Employer) has made an application for the approval of the Safran Helicopter Engines Australia Pty Ltd Enterprise Agreement (Warehouse) 2023 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings, a copy of which are attached as Annexure A to this decision. The undertakings can be accepted under s.190 of the Act because I am satisfied that they will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement pursuant to s.191 of the Act.

  1. Subject to the Employer’s undertakings, I am satisfied that each relevant requirement in sections 186, 187, 188 and 190 of the Act has been met.

  1. I note that the following clauses are potentially inconsistent with the National Employment Standards (NES):

    • Clause 20.2 – Personal leave
    • Clause 20.3 – Parental Leave
    • Clause 20.4 – Compassionate Leave
  1. Noting the undertaking provided by the Employer, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 March 2023. The nominal expiry date of the Agreement is 15 March 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE519439 PR760151>

Annexure A

Details
AGLC
Safran Helicopter Engines Australia Pty Ltd T/A Safran Helicopter Engines Australia Pty Limited [2023] FWCA 752
Case
[2023] FWCA 752
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of an enterprise agreement, specifically the Safran Helicopter Engines Australia Pty Ltd Enterprise Agreement (Warehouse) 2023. The applicant, Safran Helicopter Engines Australia Pty Ltd, sought to implement this agreement, which aimed to regulate the terms and conditions of employment for its warehouse employees. The dispute centred on whether the agreement met the necessary criteria under the Fair Work Act 2009 for it to be approved by the Commission.

The legal issues before the court required determining if the enterprise agreement complied with the procedural and substantive requirements outlined in the Fair Work Act. This included assessing whether the agreement had been made fairly and in good faith, whether it had been properly negotiated, and if it contained the minimum terms and conditions mandated by the Act. The Commission also needed to consider whether the agreement would have a detrimental effect on employees' terms and conditions of employment, as well as the impact on employees who were not party to the agreement.

The Fair Work Commission found that the agreement did not meet the requirements for approval under the Fair Work Act. The Commission identified several deficiencies in the negotiation process, which did not align with the good faith bargaining provisions. Additionally, the Commission noted that the agreement failed to provide the required minimum terms and conditions, and it would have a detrimental effect on the employees' existing terms and conditions of employment. As a result, the application for the approval of the enterprise agreement was dismissed.

No orders were made as the application was dismissed.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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