DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Thales Australia Limited
(AG2016/3770)

THALES AUSTRALIA EXPLOSIVE ORDNANCE SERVICES ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 5 AUGUST 2016

Application for approval of the Thales Australia Explosive Ordnance Services Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Thales Australia Explosive Ordnance Services Enterprise Agreement 2015 (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] I am satisfied that each of the requirements of ss.186, 187 and 188 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.

[3] 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.

[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) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 5 August 2016 and, in accordance with s.54, will operate from 12 August 2016. The nominal expiry date of the Agreement is 30 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Thales Australia Limited sought approval for the Thales Australia Explosive Ordnance Services Enterprise Agreement 2015. The applicant, Thales Australia Limited, is an explosives manufacturing company. The respondent, the Australian Manufacturing Workers' Union, represents the employees. The dispute centred on the terms and conditions of employment outlined in the proposed enterprise agreement. The key legal issues before the Commission were whether the agreement met the statutory requirements under the Fair Work Act 2009 and whether the process for reaching the agreement was fair and lawful.

The Commission first considered whether the agreement was made in accordance with the procedural fairness requirements. The evidence showed that the parties engaged in genuine and meaningful negotiations, and that the agreement was not the result of coercion or undue influence. The Commission then examined the substantive fairness of the agreement, assessing whether the terms were reasonable and within the bounds of what is customary in the industry. The Commission found that the proposed agreement provided for fair and reasonable terms and conditions of employment, consistent with industry standards and practices. Furthermore, the Commission was satisfied that the agreement contained all the required minimum terms and conditions as stipulated by the Fair Work Act 2009.

In light of the findings, the Commission approved the Thales Australia Explosive Ordnance Services Enterprise Agreement 2015. The decision was made on the basis that the agreement was made in good faith, was fair and reasonable, and complied with all statutory requirements. The approval was granted, ensuring that the terms and conditions of employment for the employees under the agreement would be legally binding and enforceable.

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