Sigma Healthcare Logistics Pty Ltd Trading AS Sigma Healthcare Logistics

SIGMA HEALTHCARE LOGISTICS (WA) ENTERPRISE AGREEMENT 2026

Application for approval of the Sigma Healthcare Logistics Pty Ltd (WA) Enterprise Agreement 2026

[1] Sigma Healthcare Logistics Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Sigma Healthcare Logistics Pty Ltd (WA) Enterprise Agreement 2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Agreement will apply to employees who are covered by the Pharmaceutical Industry Award 2020 (the Award).

[3] The Agreement contains a delegates' rights term at clause 24. This term appears to be less favourable than the delegates' rights term inserted in the Award on 23 January 2026. Pursuant to s. 205A(2) of the Act, the workplace delegates' rights term from the Award is taken to be a term of the Agreement. A copy of the workplace delegates' rights term can be found in Schedule 1.

Inconsistency with National Employment Standards (NES)

[4] The following provisions of the Agreement appear inconsistent with the NES:

1. Clause 15.3 of the Agreement provides that where an employee needs to take personal leave, the employee 'must notify their supervisor or manager by telephone, at least one hour before the start of their normal shift commencement time of the need to take leave'. Section 107(2)(a) of the Act provides that an employee must notify the Employer as soon as reasonably practicable (which may be after the leave has started).

2. Clause 20.1(d) of the Agreement provides that the employer may withhold any money due to an employee where they fail to provide the prescribed period of notice, or where the employee fails to return property of the employer upon request. This clause appears to permit the Employer to withhold monies owing to the employee under the NES, inconsistent with Chapter 2 Part 2.2 Division 2 of the Act.

3. Clause 21.2 of the Agreement provides that severance pay is not payable where the Employer finds suitable alternative employment for the employee, such as where the Employer's business is transferred to another entity.

[5] I note that in accordance with the NES precedence term in clause 6 of the Agreement, these clauses will be read and interpreted in conjunction with the NES.

[6] The following provisions of the Agreement raise concerns as to whether employees are better off overall under the Agreement than the relevant Award:

1. Clause 11.2 of the Agreement provides that ordinary hours worked between 5:00am and 7:00pm will be paid at the applicable hourly base rate of pay. Clause 13 of the Award provides that the ordinary span of hours will be between 7:45am to 5:15pm Monday to Friday, and this spread of hours may be moved up to one hour forward or one hour back by agreement. Where this occurs, employees have approximately 3.5 hours within the Agreement span where they would otherwise be entitled to overtime as dayworkers. It appears that the rates of pay in the Agreement may not be high enough to compensate employees engaged at Grade 1 or Grade 2 who would otherwise be entitled to overtime for work outside the Award spread of ordinary hours, or where an employee engaged at Grade 3 works a reduced shift of 5.5 hours or less where the majority of hours fall outside of the Award span of hours.

2. Clause 7.2 of the Agreement provides that employees may work a maximum of 10 ordinary hours per day, whereas clause 13.3 of the Award provides that shiftworkers may work a maximum of 8 ordinary hours per day and time worked in excess of 8 hours will attract overtime penalties. Rates of pay do not appear high enough to compensate Grade 1 shiftworkers who work in excess of 8 hours per day under the Agreement and are paid at their ordinary rate.

3. Clause 7.3 of the Agreement is silent on providing safeguards for part time employees in relation to their agreed hours of work, inconsistent with clauses 10.2-10.3 of the Award which provides that at the time of engagement, the employer and the part-time employee will agree in writing on a regular pattern of work, and any agreed variation to the regular pattern of work will be recorded in writing. Furthermore, clause 7.3(c) of the Agreement states that a part-time employee who works reasonable additional hours as agreed in writing and set out in the Agreement will receive overtime. As the Agreement does not appear to contain safeguards in relation to part-time agreed hours, this clause is consistent with clause 19.1(b) of the Award which provides for overtime where a part-time employee works in excess of their agreed hours of work.

4. Clause 11.2 of the Agreement provides shiftwork definitions that are slightly different to the afternoon and night shift definitions provided at clause 20 of the Award. The definitions under the Agreement allow for times where employees will receive their ordinary hourly rate of pay for some hours worked, whereas under the Award these same hours would trigger shiftwork penalties. Rates of pay may not be high enough to compensate employees who work in this manner.

5. Clause 11.2 of the Agreement provides that all ordinary hours performed on a Saturday will be paid at 150% and 175% on a Sunday, whereas clause 19 of the Award provides that hours worked on a Saturday will be paid at 150% for the first 2 hours and 200% thereafter, and hours worked on a Sunday will be paid at 200%. Rates of pay do not appear high enough to compensate either permanent or casual employees classified as either a Grade 1 or 2 and who perform work 4 hours or more on a Saturday or a Sunday.

6. Clause 16.2 of the Agreement states that all time worked on a public holiday will be paid at 200%. Clause 19 of the Award provides that all hours worked on a public holiday will be paid at 250%. This presents a concern for casual or part-time employees working on public holidays in isolation or alongside few other hours, where rates of pay do not appear high enough to compensate employees classified as either a Grade 1 or 2.

Reasonably foreseeable patterns of work and type of employment

[7] The Employer submitted that it does not employ part time workers, nor does it foresee doing so, as this would not suit the nature of the business and the way work is organised. I am satisfied, based on the submissions of the Employer, that part time work is not reasonably foreseeable for the purpose of s.193A(6).

[8] The Employer provided rosters showing employees' shift patterns and submitted that these rosters are long-established without change, and mirror those used in other parts of the business. I am satisfied, based on the submissions of the Employer, that the patterns of work in the rosters provided by the Employer are reasonably foreseeable for the purpose of s.193A(6).

[9] The Employer provided written submissions and undertakings to address the above BOOT issues. A copy of the undertakings is attached in Schedule 2 of the Agreement. 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.

[10] 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.

[11] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 April 2026. The nominal expiry date of the Agreement is 25 March 2030.

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