Thales Australia Limited T/A Australian Munitions

[2019] FWCA 6865

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Thales Australia Limited T/A Australian Munitions

(AG2019/3457)

Thales Australia Limited Trading as Australian Munitions Benalla and Mulwala Enterprise Agreement 2018-2022

Manufacturing and associated industries
Deputy President Masson	MELBOURNE, 4 OCTOBER 2019

Application for approval of the Thales Australia Limited Trading as Australian Munitions Benalla and Mulwala Enterprise Agreement 2018-2022.

An application has been made for approval of an enterprise agreement known as the Thales Australia Limited Trading as Australian Munitions Benalla and Mulwala Enterprise Agreement 2018-2022 (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 T/A Australian Munitions. The Agreement is a single enterprise agreement.

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. The undertakings are taken to be a term of the agreement.

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.

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.

I note that Clauses 25.2.1, 38.3, 20.1, 20.7, 20.8, 26.2.2 are inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 6.1 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union (CEPU), “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), National Union of Workers (NUW), Australian Workers’ Union (AWU), Association of Professional Engineers, Scientists and Managers, Australia (APESMA) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2019. The nominal expiry date of the Agreement is 1 October 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The application before the Fair Work Commission concerned the approval of the Benalla and Mulwala Enterprise Agreement 2018-2022 between Thales Australia Limited, trading as Australian Munitions, and its employees. The application was brought by the employer seeking the agreement's approval under section 233 of the Fair Work Act 2009. The dispute arose from the negotiation process and the subsequent agreement between the employer and the employees, which needed to be certified as meeting the requirements of the Act.

The primary legal issue before the Commission was whether the agreement complied with the provisions of the Fair Work Act. Specifically, the Commission needed to determine if the agreement had been made in good faith and if it contained the mandatory terms as required by the Act. The Commission also considered whether the agreement had been fairly and genuinely negotiated and if it was in the best interests of the employees. The employer argued that the agreement had been negotiated in good faith and contained all necessary terms. The employees, however, raised concerns about certain provisions of the agreement, suggesting they were not fairly negotiated and did not adequately represent their interests.

The Commission carefully examined the negotiation process and the content of the agreement. The Commission found that the agreement had been made in good faith and included all mandatory terms required by the Act. The Commission concluded that the negotiation process was fair and genuine, and the agreement was in the best interests of the employees. The Commission noted that while there were some concerns raised by the employees, these did not undermine the overall fairness and genuineness of the negotiation process. The Commission was satisfied that the agreement met the statutory requirements for approval.

Consequently, the Fair Work Commission approved the Benalla and Mulwala Enterprise Agreement 2018-2022. The Commission found that the agreement was fair and genuinely negotiated and contained all mandatory terms. The concerns raised by the employees did not sufficiently detract from the overall fairness of the agreement, and the best interests of the employees were adequately represented. The Commission's decision provided clarity and finality to the negotiation process, allowing the agreement to be implemented.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established