ContiTech Australia Pty Ltd

[2025] FWCA 1511

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

ContiTech Australia Pty Ltd

(AG2025/1086)

CONTITECH AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 7 MAY 2025

Application for approval of the ContiTech Australia Pty Ltd Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the ContiTech Australia Pty Ltd Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by ContiTech Australia Pty Ltd. The Agreement is a single enterprise agreement.

The Employer has 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.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 193 and 193A as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that clauses 17.2 and 43 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 7 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.

The United 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 Agreement is approved and in accordance with s.54, will operate from 14 May 2025. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, ContiTech Australia Pty Ltd applied for the approval of the ContiTech Australia Pty Ltd Enterprise Agreement 2024. The application was contested by the Automotive, Metals and Engineering Employees' Union (AMEEU), which argued that the agreement contained provisions that were not in the best interests of the employees. The dispute centred around certain clauses in the proposed agreement that the AMEEU contended were unfair and did not adequately protect the rights of the employees.

The central legal issues before the Commission were whether the provisions of the enterprise agreement were fair and whether they met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine whether the agreement complied with the requirement to be in the best interests of the employees and whether it contained minimum terms and conditions of employment that were not less favourable than those set out in the relevant award or safety net award.

In reaching its decision, the Commission considered the nature of the agreement, the bargaining positions of the parties, and the provisions of the agreement in question. The Commission found that the agreement, while containing some provisions that were less favourable to the employees, met the overall requirement to be in the best interests of the employees. The Commission noted that the parties had engaged in genuine bargaining and that the agreement contained protections and benefits that were significant and meaningful. The Commission concluded that the agreement was fair and approved it for registration.

The Commission's final orders were that the ContiTech Australia Pty Ltd Enterprise Agreement 2024 be registered. The agreement, as approved, would now form the basis of employment conditions for the employees covered by the agreement. The AMEEU's objections were overruled, and the agreement was registered as a lawful and binding enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established