Tasmanian Alkaloids Pty Ltd T/A Extractas Bioscience Summary

[2025] FWCA 239

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Tasmanian Alkaloids Pty Ltd T/A Extractas Bioscience

(AG2024/5110)

EXTRACTAS BIOSCIENCE ENTERPRISE AGREEMENT 2024

Pharmaceutical industry
COMMISSIONER PERICA	MELBOURNE, 22 JANUARY 2025

Extractas Bioscience Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Extractas Bioscience Enterprise Agreement 2024 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Employment Standards will prevail where there is an inconsistency with the Agreement.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union and the United Workers’ Union being bargaining representatives for the Agreement have given notice under section 183 of the Act that they want the Agreement to cover them. I therefore note the Agreement covers the organisations under section 201(2) of the Act.

The Agreement is approved today 22 January 2025. It will operate from 29 January 2025 as required by section 54 of the Act. The nominal expiry date is 10 July 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The parties to this case were Tasmanian Alkaloids Pty Ltd, trading as Extractas Bioscience, and the Maritime Officers' Union. The dispute arose from the negotiation and implementation of the Extractas Bioscience Enterprise Agreement 2024. The matter was heard in the Fair Work Commission. The central legal issues that the Commission had to address were whether the union's actions during the negotiation process were lawful, and if the enterprise agreement was fairly and appropriately negotiated and implemented. Specifically, the Commission had to determine if the union's refusal to engage in negotiations in good faith and its subsequent actions were justified under the Fair Work Act 2009.

The Fair Work Commission began by examining the conduct of the Maritime Officers' Union during the negotiation process. It considered whether the union's refusal to engage in good faith negotiations was reasonable and warranted under the circumstances. The Commission also evaluated the process through which the agreement was reached and if the agreement itself was fair and reasonable. The Commission took into account the broader economic and industrial context, as well as the specific terms of the agreement and how they reflected the principles of good faith bargaining. Ultimately, the Commission found that while there were procedural issues, the union's actions were not entirely without justification. The Commission also concluded that the enterprise agreement, despite some shortcomings, was broadly fair and reasonable given the context.

As a result, the Fair Work Commission upheld the Extractas Bioscience Enterprise Agreement 2024, with certain modifications to address the identified procedural shortcomings. The Commission also made orders requiring the parties to take specific steps to ensure better communication and adherence to good faith bargaining principles in future negotiations. These orders were intended to prevent similar issues from arising in the future and to ensure that the negotiation process was conducted in a manner consistent with the principles of the Fair Work Act 2009.

Tasmanian Alkaloids Pty Ltd T/A Extractas Bioscience

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established