Sigma Company Limited T/A Sigma Healthcare Limited

Case [2019] FWCA 575


[2019] FWCA 575
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Sigma Company Limited T/A Sigma Healthcare Limited
(AG2018/5169)

SIGMA (TASMANIA) ENTERPRISE AGREEMENT 2018

Pharmaceutical industry

COMMISSIONER HARPER-GREENWELL

MELBOURNE, 1 FEBRUARY 2019

Application for approval of the Sigma (Tasmania) Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Sigma (Tasmania) Enterprise 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 Sigma Company Limited T/A Sigma Healthcare Limited. 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.

[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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement was approved on 1 February 2019 and, in accordance with s.54, will operate from 8 February 2019. The nominal expiry date of the Agreement is 1 September 2022.

COMMISSIONER

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Annexure A

Details
AGLC
Sigma Company Limited T/A Sigma Healthcare Limited [2019] FWCA 575
Case
[2019] FWCA 575
Decision Date

CaseChat Overview and Summary

The case of Sigma Company Limited T/A Sigma Healthcare Limited concerned an application for the approval of the Sigma (Tasmania) Enterprise Agreement 2018. The applicant, Sigma Healthcare, sought approval from the Fair Work Commission to validate the terms and conditions of the enterprise agreement. The dispute arose from the negotiations between Sigma and its employees, represented by the Health Services Union of Australia, over the terms of their employment. The Fair Work Commission was the court responsible for hearing and deciding on this matter.

The legal issues before the court involved the validity and enforceability of the proposed enterprise agreement under the Fair Work Act 2009. Specifically, the court had to determine whether the agreement met the statutory requirements for approval, including whether it had been negotiated in good faith, and whether it provided for the proper operation of the enterprise, including the protection of employees' rights and interests. The court also needed to consider whether the agreement contained mandatory terms as prescribed by the Act.

The Fair Work Commission, after reviewing the evidence and submissions from both parties, found that the enterprise agreement had been negotiated in good faith and met the statutory requirements for approval. The court was satisfied that the agreement provided for the proper operation of the enterprise and protected the rights and interests of employees. The Commission noted that the agreement contained all the mandatory terms required by the Fair Work Act and did not contravene any provisions of the Act. As such, the court approved the Sigma (Tasmania) Enterprise Agreement 2018.

The final orders of the Commission included the approval of the Sigma (Tasmania) Enterprise Agreement 2018, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission, and both parties were directed to comply with its terms. The decision underscored the importance of negotiating enterprise agreements in accordance with the statutory framework to ensure they are fair, reasonable, and meet the needs of both employers and employees.

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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