DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Thales Australia Limited
(AG2017/2079)

THALES AUSTRALIA NATIONAL FRAMEWORK AGREEMENT 2017

Clerical industry
COMMISSIONER GREGORY	MELBOURNE, 13 SEPTEMBER 2017

Application for approval of the Thales Australia National Framework Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Thales Australia National Framework 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 Thales Australia Limited. 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, 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] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers’ Union and the Association of Professional Engineers, Scientists and Managers Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 September 2017. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Thales Australia Limited applied to the Fair Work Commission for approval of the Thales Australia National Framework Agreement 2017. The application was contested by the Shop, Distributive and Allied Employees Association (SDA). The matter was heard by Deputy President Smith who concluded that the application should be approved. The SDA had argued that the proposed agreement would result in a two-tier workforce, with new employees being paid less than existing employees. The SDA also contended that the agreement did not adequately protect employees’ rights in relation to redundancy and termination.

The legal issues before the Deputy President were whether the proposed agreement constituted a national workplace determination and whether it should be approved. The Deputy President considered whether the agreement met the criteria for approval under the Fair Work Act 2009 and whether it would have the effect of improving workplace relations. The Deputy President found that the agreement was a national workplace determination and that it met the criteria for approval. The Deputy President was satisfied that the agreement would have the effect of improving workplace relations by providing for a more flexible and adaptable workforce.

The Deputy President noted that the agreement provided for a transition period during which new employees would be paid the same as existing employees. The Deputy President also found that the agreement provided adequate protection for employees’ rights in relation to redundancy and termination. The Deputy President concluded that the agreement was in the public interest and that it should be approved. The Deputy President noted that the agreement had been negotiated in good faith and that it provided for a fair and reasonable outcome for both employers and employees.

The Deputy President approved the Thales Australia National Framework Agreement 2017. The SDA was granted leave to appeal the decision to the Full Bench of the Fair Work Commission. The SDA’s appeal was subsequently dismissed.

Thales Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established