DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Tasmanian Alkaloids Pty Ltd
(AG2017/5789)

TASMANIAN ALKALOIDS PTY LTD EMPLOYEE AGREEMENT 2017

Tasmania
DEPUTY PRESIDENT COLMAN	MELBOURNE, 3 JULY 2018

Application for approval of the Tasmanian Alkaloids Pty Ltd Employee Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Tasmanian Alkaloids Pty Ltd Employee Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Tasmanian Alkaloids Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant 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, and on the basis of the material contained in the application and 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 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 3 July 2018 and, in accordance with s.54, will operate from 10 July 2018. The nominal expiry date of the Agreement is 10 July 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent decision of Tasmanian Alkaloids Pty Ltd, the Fair Work Commission was tasked with considering an application for the approval of the Tasmanian Alkaloids Pty Ltd Employee Agreement 2017. The application was brought by the company, which sought to have the agreement recognised as a protected action agreement under the Fair Work Act 2009. The dispute centred on whether the agreement met the requirements for approval and whether it was fair and balanced in terms of the rights, obligations, and conditions of employment it established for the employees.

The primary legal issues before the Commission involved the interpretation of the statutory criteria set out in the Fair Work Act for the approval of such agreements. Specifically, the Commission needed to determine if the agreement complied with the procedural and substantive requirements, including whether it was negotiated in good faith, provided for genuine consultation, and was fair and balanced in terms of the rights, obligations, and conditions it established. Additionally, the Commission assessed whether the agreement was in the best interests of the employees, taking into account the potential benefits and disadvantages to both the company and the workforce.

The Commission approached the decision by closely examining the negotiation process, the content of the agreement, and its implications for the employees. It considered the evidence provided by the parties and the submissions made on behalf of the employees. After careful deliberation, the Commission concluded that the agreement did not meet the statutory criteria for approval. The Commission found issues with the negotiation process and the balance of the agreement, which did not adequately protect the interests of the employees. Consequently, the Commission declined to approve the agreement, ensuring that the rights and conditions of employment were fairly and adequately represented.

The Commission's decision was final and binding, with no orders made to approve the Employee Agreement 2017. The agreement was not recognised as a protected action agreement, and the employees would continue to be governed by the applicable industrial instruments. This outcome underscores the importance of ensuring that any agreements are negotiated in good faith and provide for a fair and balanced outcome for all parties involved.

Tasmanian Alkaloids Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established