Bmc Welding & Construction Pty Ltd

[2025] FWCA 3502

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Bmc Welding & Construction Pty Ltd

(AG2025/3489)

BMC WELDING & CONSTRUCTION LOY YANG A & B MECHANICAL (AMWU & CFMEU) ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER MATHESON	SYDNEY, 21 OCTOBER 2025

Application for approval of the BMC Welding & Construction Loy Yang A & B Mechanical (AMWU & CFMEU) Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the BMC Welding & Construction Loy Yang A & B Mechanical (AMWU & CFMEU) Enterprise Agreement 2025 (Agreement). The application was made by BMC Welding & Construction Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

I observe that certain provisions of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 6.1 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

On the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to the application for approval of the Agreement have been met.

The ”Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Construction, Forestry and Maritime Employees Union (CFMEU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 October 2025. The nominal expiry date of the Agreement is 30 June 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the case of BMC Welding & Construction Pty Ltd involved a dispute over the approval of an enterprise agreement between BMC Welding & Construction and the Australian Manufacturing Workers' Union (AMWU) and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The enterprise agreement in question pertains to the Loy Yang A & B Mechanical employees, and the application sought the Commission's approval of this agreement for the coming years. The case focused on whether the proposed agreement met the necessary legal and procedural standards for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the enterprise agreement complied with the requirements of the Fair Work Act, particularly whether it met the 'better off overall test' (BOOT). This test ensures that employees are not worse off financially under the new agreement compared to their existing conditions. Additionally, the Commission needed to determine if the agreement was fairly negotiated, free from any improper influences, and if it contained all necessary provisions as per the Act's requirements.

The Commission carefully examined the provisions of the agreement, considering the submissions from both parties. It assessed whether the proposed changes to wages, conditions, and other terms would indeed be better for the employees overall. The Commission also reviewed the negotiation process to ensure it was conducted fairly and without coercion. After thorough deliberation, the Commission found that the agreement did meet the statutory requirements and passed the BOOT. Consequently, the Commission approved the enterprise agreement, recognising it as fair and compliant with the legislative framework.

As a result of the Commission's decision, the BMC Welding & Construction Loy Yang A & B Mechanical (AMWU & CFMEU) Enterprise Agreement 2025 was approved and will come into effect as per the specified dates. This approval ensures that the agreement legally binds the employer and the employees, providing a stable framework for industrial relations moving forward.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established