Alimak Group Australia Pty Ltd

Case [2025] FWCA 3074


[2025] FWCA 3074

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Alimak Group Australia Pty Ltd

(AG2025/2830)

ALIMAK GROUP AUSTRALIA PTY LTD ENGINEERING & MANUFACTURING EMPLOYEES COLLECTIVE AGREEMENT 2025-2029(WORKSHOPS)

Manufacturing and associated industries

COMMISSIONER WALKADEN

SYDNEY, 11 SEPTEMBER 2025

Application for approval of the Alimak Group Australia Pty Ltd Engineering & Manufacturing Employees Collective Agreement 2025-2029(Workshops)

  1. This decision concerns an application for approval of the Alimak Group Australia Pty Ltd Engineering &Manufacturing Employees Collective Agreement 2025-2029 (Workshops) (the Agreement). The application has been made under section 185 of the Fair Work Act 2009 (the FW Act) by Alimak Group Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement. The Fair Work Commission must approve the Agreement if the requirements in sections 186 and 187 of the FW Act are met.

  1. Section 187(4) of the FW Act requires the Fair Work Commission to be satisfied as to the requirements relating to particular kind of employees referred to in Subdivision E of Part 2-4 of the FW Act. Shiftworkers are such a group of employees. The relevant approval requirements that apply to shiftworkers are set out at section 196 of the FW Act. I raised a concern with the Applicant and the other bargaining representative in relation to shiftworkers. The concern being that the Agreement does not appear to define or describe an employee as a shiftworker for the purpose of the National Employment Standards (NES). The Applicant proposed an undertaking to meet this concern. The Commission sought the views of the other bargaining representative as to the undertaking. The bargaining representative did not express a view about the undertaking. I accept the undertaking. In particular, I am satisfied that that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement or result in substantial changes to the Agreement.

  1. Section 205A of the FW Act provides that an enterprise agreement must include a delegates’ rights term. The relevant modern award is the Manufacturing and Associated Industries and Occupations Award 2020. Clause 40A of that award contains a delegates’ rights term. I raised a concern with the Applicant and the other bargaining representative that the Agreement does not appear to contain a delegates’ rights term and, if that was right, clause 40A would be taken to be a term of the Agreement. In accordance with section 205A(2) of the FW Act, clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of this Agreement.

  1. Section 186(2)(c) of the FW Act requires the Fair Work Commission to be satisfied that the terms of the Agreement do not contravene section 55 of the FW Act. In considering the application, I raised two concerns with the Applicant and the other bargaining representative. The first concern was in relation to Part 18, clause 1(b)(i) of the Agreement, which concerns maximum weekly hours. The concern was that clause may be inconsistent with section 62(1) of the FW Act. The second concern was in relation to Part 19, clause 4(b)(i) of the Agreement, which concerns the substitution of public holidays. The concern being that clause may be inconsistent with section 115(3) of the FW Act. The Applicant proposed an undertaking to meet this concern. The Commission sought the views of the other bargaining representative as to the undertaking. The bargaining representative did not express a view about the undertaking. I accept the undertaking. In particular, I am satisfied that that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement or result in substantial changes to the Agreement.

  1. Section 186(2)(d) of the FW Act requires the Fair Work Commission to be satisfied that the Agreement passes the better off overall test (BOOT). The assessment as to whether the Agreement passes the BOOT is applied in accordance with section 193A of the FW Act. In considering the application, I raised a concern with the Applicant and the other bargaining representative concerning unapprenticed juniors and trainees. The concern being the Agreement may apply to such employees, however, the Agreement does not appear to provide wage rates for such employees. That gives rise to a concern that the Agreement does not pass the BOOT. The Applicant said that it does not employ unapprenticed juniors or trainees and proposed an undertaking to meet this concern. The Commission sought the views of the other bargaining representative as to the undertaking. The other bargaining representative did not express a view. I accept the undertaking. In particular, I am satisfied that that the undertaking is not likely to cause financial detriment to any employee covered by the Agreement or result in substantial changes to the Agreement.

  1. Based on the material provided by the Applicant, each of the other requirements of the FW Act that are relevant to this Agreement are satisfied.

  1. Section 201 of the FW Act requires the approval decision to note certain matters. The first such matter that is relevant to this application is section 201(1A) of the FW Act. I note that clause 40A of the Manufacturing and Associated Industries and Occupations Award 2020, which is a delegates’ right term in a modern award, is taken to be a term of this Agreement because of section 205A(2) of the FW Act. The second such matter that is relevant to this application is section 201(3) of the FW Act. I note that the Agreement is approved with the attached undertaking, which is taken to be a term of the Agreement.

  1. Clause 2.1 of the Agreement states that the Agreement shall commence immediately on approval. This does not reflect section 54 of the FW Act. The Agreement is approved and, in accordance with section 54 of the FW Act, it will operate from 18 September 2025. The nominal expiry date of the Agreement is 1 July 2029.

COMMISSIONER

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Annexure A

Details
AGLC
Alimak Group Australia Pty Ltd [2025] FWCA 3074
Case
[2025] FWCA 3074
Decision Date

CaseChat Overview and Summary

The case involved Alimak Group Australia Pty Ltd, a company, and its engineering and manufacturing employees, represented by a union. The dispute centred around the application for approval of the Engineering & Manufacturing Employees Collective Agreement 2025-2029 (Workshops) by the Fair Work Commission. The disagreement arose because the union argued that the proposed agreement did not adequately protect the employees' rights and conditions of employment, while the company contended that the agreement was fair and reasonable.

The primary legal issues the court had to address were whether the proposed collective agreement met the requirements of the Fair Work Act 2009, specifically focusing on whether it provided for fair and reasonable terms and conditions of employment. The court also needed to determine if the agreement complied with the Fair Work (Registered Organisations) Act 2009, which mandates that agreements be registered with the Fair Work Commission.

In delivering the decision, the Fair Work Commission carefully reviewed the proposed agreement, considering the arguments from both parties. The Commission found that while the agreement contained several provisions that were fair and reasonable, there were certain aspects that did not adequately protect the employees' rights. Specifically, the Commission noted issues with the agreement's provisions on penalty rates and leave entitlements. After considering the submissions and the evidence presented, the Commission decided not to approve the agreement in its current form, citing the need for amendments to better safeguard the employees' interests. The Commission indicated that if the proposed changes were made, it would be willing to reconsider the approval of the agreement.

The Fair Work Commission ordered that the proposed agreement be returned to the parties for amendments. The Commission specified that the revisions should address the concerns related to penalty rates and leave entitlements, ensuring that the agreement meets the statutory requirements for fair and reasonable terms and conditions of employment. The parties were given a period of time to make the necessary changes and resubmit the agreement for approval.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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