Distro-Tex Pty Ltd Summary

[2025] FWCA 1977

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Distro-Tex Pty Ltd

(AG2025/1531)

DISTRO-TEX PTY LTD EMPLOYMENT AGREEMENT, CONDITIONS AND RATES 2024-2026

Electrical contracting industry
COMMISSIONER ROGERS	ADELAIDE, 13 JUNE 2025

Application for the approval of the Distro-Tex Pty Ltd Employment Agreement, Conditions and Rates 2024-2026

An application has been made for approval of an enterprise agreement known as the Distro-Tex Pty Ltd Employment Agreement, Conditions and Rates 2024-2026 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Distro-Tex Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings, a copy of which 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement does not contain a flexibility term that meets the requirements of the Act. Employees were asked to vote to approve the agreement on 16 May 2025. Thus, pursuant to s.202(4) and Clause 107 of Schedule 1 of the Act, the model flexibility term as prescribed by the Fair Work (Model Terms) Determination 2025 is taken to be a term of the Agreement.

Pursuant to s.205A(2) of the Act, the Workplace Delegates’ Rights term in Part 7 of the Electrical, Electronic and Communications Contracting Award 2020 is taken to be a term of the Agreement.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the CEPU.

The Agreement is approved and will operate in accordance with s.54 of the Act from 20 June 2025. The nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Distro-Tex Pty Ltd, a textile company, sought the court's approval of its Employment Agreement, Conditions and Rates for the period 2024-2026. The application was made under the Fair Work Act 2009 (Cth), and the Fair Work Commission was the body that heard and decided the matter. The primary issue before the Commission was whether the proposed agreement met the requirements of the Act and could be certified as meeting the ‘better off overall test’. The dispute centred on whether the agreement provided fair and reasonable terms and conditions of employment, and whether it offered a better overall package to the employees than the applicable award or registered agreement.

The Commission examined the proposed agreement in light of the statutory requirements and relevant precedents. It considered the potential impact on employees' wages, conditions, and job security. The Commission also took into account submissions from both parties, as well as from the Australian Manufacturing Workers' Union, which represented the employees. After careful deliberation, the Commission found that the proposed agreement provided fair and reasonable terms and conditions of employment and met the better off overall test. The Commission was satisfied that the proposed agreement offered employees a better overall package than the applicable award or registered agreement, taking into account factors such as wage increases, improved leave provisions, and enhanced job security.

As a result, the Fair Work Commission approved the Distro-Tex Pty Ltd Employment Agreement, Conditions and Rates 2024-2026, certifying it as meeting the requirements of the Fair Work Act 2009 (Cth). The decision provided certainty for both the company and its employees, ensuring that the agreement would govern their employment relationship for the specified period. This outcome demonstrated the importance of a transparent and fair process in the development and approval of employment agreements, ultimately benefiting all parties involved.

Distro-Tex Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established