Thales Australia Limited Summary

[2022] FWCA 3576

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Thales Australia Limited

(AG2022/4020)

Thales Australia Explosive Ordnance Services Enterprise Agreement 2022

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 13 OCTOBER 2022

Application for approval of the Thales Australia Explosive Ordnance Services Enterprise Agreement 2022

Thales Australia Limited has made an application for approval of the Thales Australia Explosive Ordnance Services Enterprise Agreement 2022 (the Agreement) pursuant to s 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 which 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 they will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement. Subject to these undertakings, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval has 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.

The United Workers Union (UWU), 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 its declaration, I note that the Agreement covers the UWU.

The Agreement was approved on 13 October 2022 and, in accordance with s 54, will operate from 20 October 2022. The nominal expiry date of the Agreement is 30 July 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves Thales Australia Limited, an Australian company, and the Fair Work Commission, which was tasked with approving the Thales Australia Explosive Ordnance Services Enterprise Agreement 2022. The applicant, Thales Australia Limited, sought approval for the agreement from the Fair Work Commission under the Fair Work Act 2009. The legal issues before the Commission revolved around whether the agreement met the criteria for approval as stipulated in the Act, specifically whether the agreement complied with the requirements for good faith bargaining, and if it was free from any invalid or unenforceable terms.

The Commission examined the process of bargaining and the terms of the proposed agreement. It was essential to determine if the agreement had been negotiated in good faith, whether it was made without any improper influence or coercion, and if it contained terms that were not enforceable or were otherwise invalid. The Commission also considered the implications of the agreement on the employees' rights and the overall fairness of the terms. After reviewing the evidence and arguments presented by both parties, the Commission found that the agreement was made in good faith and without any procedural flaws or invalid terms. Consequently, the Commission approved the agreement, recognising its compliance with the statutory requirements.

The Fair Work Commission approved the Thales Australia Explosive Ordnance Services Enterprise Agreement 2022, affirming that it was negotiated in good faith and met all statutory requirements for approval. The decision underscores the importance of adhering to the principles of good faith bargaining and the necessity for agreements to be free from invalid or unenforceable terms. This approval reinforces the legal framework within which enterprise agreements must be negotiated and concluded in Australia.

Thales Australia Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established