Philmac Pty Ltd

Meeting GFB obligations not required for agreement approval (unless scope order in place)

In this decision, Ai Group appealed a decision of O’Callaghan SDP to refuse to approve an enterprise agreement on the basis that the parties had not complied with the good faith bargaining requirements. O’Callaghan SDP found that the enterprise agreement could not be approved, relying on section 187(2) of the Act which requires FWA to be satisfied that approving the enterprise agreement would not be inconsistent with or undermine good faith bargaining for a proposed enterprise agreement in relation to which a scope order is in operation. In this case, there was no scope order in operation. A Full Bench of FWA upheld the appeal, confirming that section 187(2) only applies where there is a scope order in operation.