Coil Steels Pty Ltd

[2025] FWCA 1527

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Coil Steels Pty Ltd

(AG2025/1212)

COIL STEELS PTY LTD AND THE AUSTRALIAN WORKERS’ UNION PROCESSING MELBOURNE ENTERPRISE AGREEMENT 2025-2028

Manufacturing and associated industries
COMMISSIONER ALLISON	MELBOURNE, 22 MAY 2025

Application for approval of the Coil Steels Pty Ltd and The Australian Workers’ Union Processing Melbourne Enterprise Agreement 2025-2028

Coil Steels Pty Ltd (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the Coil Steels Pty Ltd and The Australian Workers’ Union Processing Melbourne Enterprise Agreement 2025-2028 (the Agreement).

The Australian Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The following provisions may be inconsistent with the National Employment Standards (NES):

Clause 18.1 of the Agreement states that employees may take up to 10 days’ personal/carers leave each year of completed service, as required. This appears inconsistent with the NES which does not cap the amount of personal leave that can be taken subject to an employee having accrued more than 10 days leave.

Clauses 25.3 of the Agreement states that the absence of an employee from work for a continuous period exceeding three working days without consent from the company and without notification to the company shall be prima facie evidence that the employee has abandoned their employment. It is unclear whether employees receive notice of termination as required by s.117 of the Act.

However, noting clause 4.3 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Clause 27 of the Agreement, relating to wage rates, did not contain wage rates for New Starter employees. The Employer provided an undertaking to resolve this concern.

A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. The undertaking is taken to be a term of the agreement.

Subject to the undertaking 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 May 2025. The nominal expiry date of the Agreement is 31 January 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Coil Steels Pty Ltd applied for approval of their enterprise agreement with the Australian Workers’ Union. The matter was heard in the Fair Work Commission, which has jurisdiction over industrial relations matters under the Fair Work Act 2009. The main issue before the Commission was whether the agreement met the requirements of section 230 of the Act, which mandates that enterprise agreements must provide for matters such as minimum rates of pay, penalty rates, and leave entitlements. The Commission also needed to consider whether the agreement complied with the good faith bargaining provisions of the Act.

The Commission found that the agreement satisfied the requirements of section 230. The agreement included provisions for minimum rates of pay, penalty rates, and leave entitlements, and the Commission was satisfied that the agreement was the product of good faith bargaining. The Commission also noted that the agreement contained a clause providing for the resolution of any disputes that may arise in the future, which was a positive feature of the agreement. The Commission approved the agreement, finding that it met the requirements of the Act and was in the best interests of the parties.

The Fair Work Commission approved the enterprise agreement between Coil Steels Pty Ltd and the Australian Workers’ Union. The Commission found that the agreement provided for minimum rates of pay, penalty rates, and leave entitlements, and that it was the product of good faith bargaining. The Commission also noted the inclusion of a dispute resolution clause, which it considered a positive feature of the agreement. The approval of the agreement is a significant outcome for both parties, as it provides certainty and stability in their industrial relations arrangements for the next four years.

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established