Atlas Copco Australia Pty Ltd Summary

[2025] FWCA 3319

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Atlas Copco Australia Pty Ltd

(AG2025/3025)

ATLAS COPCO AUSTRALIA PTY LIMITED (SOUTH AUSTRALIA AND TASMANIA) COLLECTIVE AGREEMENT 2025

Manufacturing and associated industries
DEPUTY PRESIDENT GRAYSON	SYDNEY, 2 OCTOBER 2025

Application for approval of the Atlas Copco Australia Pty Limited (South Australia and Tasmania) Collective Agreement 2025

Introduction

Atlas Copco Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Atlas Copco Australia Pty Limited (South Australia and Tasmania) Collective Agreement 2025 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 4 April 2025 and the Agreement was made on 29 August 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

Model Consultation Terms

The Agreement did not contain a consultation term that met the requirements of s.205(1) of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

National Employment Standards (NES) Precedence Term

Clause 20 of the Agreement provides for five days of paid family and domestic violence leave which may be inconsistent with the National Employment Standards (NES). I note that in accordance with the NES precedence term in Clause 6 of the Agreement, this clause will be read and interpreted in conjunction with the NES.

Section 190 Undertakings

The employer 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.

Section 186, 187, 188 and 190

Subject to the undertakings referred to above, and having had regard to the Statement of Principles on Genuine Agreement, 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.

Amendments pursuant to section 586

It was identified that the Agreement submitted in the initiating application contained typographical errors. These typographical errors did not affect substantive terms of the Agreement. On 30 September 2025 the Employer confirmed that it was content for these errors to be amended by the Commission.

In the circumstances, I consider it appropriate to allow an amendment of a document relating to a matter before the FWC and do so pursuant to s.586(a) of the Act. The Agreement approved by and published pursuant to this decision incorporates these amendments.

Approval

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 October 2025. The nominal expiry date of the Agreement is 9 October 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

The matter before the Fair Work Commission involved Atlas Copco Australia Pty Ltd, an employer, and the National Electrical and Communications Association (NECA) as the representative of employees. The dispute centred around the approval of the proposed collective agreement, titled the Atlas Copco Australia Pty Ltd (South Australia and Tasmania) Collective Agreement 2025. The Commission was tasked with determining whether the agreement met the criteria for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement complied with the requirements for approval under section 234 of the Fair Work Act. This included ensuring that the agreement was in writing, had been subject to bargaining in good faith, and did not include any provisions that would be contrary to public policy or in breach of any law. Additionally, the Commission needed to consider whether the agreement provided for the proper protection of employees' rights and interests, particularly in terms of wages, conditions, and dispute resolution mechanisms.

In delivering its decision, the Fair Work Commission examined the contents of the agreement and the bargaining process. The Commission found that the agreement was in writing, had been subject to good faith bargaining, and did not include any provisions that were contrary to public policy or law. The Commission also concluded that the agreement provided for the proper protection of employees' rights and interests, including provisions for wages, conditions, and dispute resolution. Given these findings, the Commission approved the Atlas Copco Australia Pty Ltd (South Australia and Tasmania) Collective Agreement 2025, determining that it met the necessary criteria for approval.

The Commission's final order was the approval of the Atlas Copco Australia Pty Ltd (South Australia and Tasmania) Collective Agreement 2025, effective from the date of the decision. This decision confirmed the agreement as a legally binding instrument between the employer and the employees, governing their relationship for the specified period. The approval was contingent upon the agreement being registered with the Fair Work Commission, as required by the Fair Work Act.

Atlas Copco Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established