Exar (Vic) Pty Ltd Summary

[2025] FWCA 1435

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Exar (Vic) Pty Ltd

(AG2025/1191)

EXAR (VIC) PTY LTD AND THE CFMEU (VICTORIAN CONSTRUCTION AND GENERAL DIVISION) SUBCONTRACTORS CARPENTRY & JOINERY ENTERPRISE AGREEMENT 2024 - 2027

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 1 MAY 2025

Application for approval of the Exar (Vic) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Carpentry & Joinery Enterprise Agreement 2024 - 2027

An application has been made for approval of an enterprise agreement known as the Exar (Vic) Pty Ltd and the CFMEU (Victorian Construction and General Division) Subcontractors Carpentry & Joinery Enterprise Agreement 2024 - 2027 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Exar (Vic) Pty Ltd. The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, 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 sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The CFMEU, 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 application for approval of the Agreement was accompanied by an application to vary the proposed Agreement pursuant to s.218A of the Act, to correct an obvious error in the proposed Agreement. The variation sought was to correct an incorrect reference to the employers ABN in clause 2, which should read ‘Employer means Exar (Vic) Pty Ltd ABN: 38 108 838 400’. I am satisfied the incorrect ABN of the Employer in clause 2 is an obvious error and I now amend the Agreement accordingly pursuant to s.218A of the Act.

The Agreement was approved on 1 May 2025 and, in accordance with s.54 of the Act, will operate from Thursday 8 May 2025. The nominal expiry date of the Agreement is 2 July 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Exar (Vic) Pty Ltd, an employer, and the Construction, Forestry, Maritime, Mining and Energy Union (Victorian Construction and General Division), a trade union, applied for the approval of the Subcontractors Carpentry & Joinery Enterprise Agreement 2024-2027. The application was made before the Fair Work Commission, which oversees the approval of enterprise agreements under the Fair Work Act 2009. The nature of the dispute centred on whether the proposed agreement complied with the legislative requirements for approval, including provisions related to wages, working conditions, and dispute resolution mechanisms.

The legal issues before the Commission were whether the agreement met the "better off overall test" (BOOT), which requires that employees are not worse off financially, and whether it contained provisions that were contrary to public policy or contrary to the objectives of the Fair Work Act. Additionally, the Commission needed to consider if the agreement appropriately balanced the interests of both employers and employees and whether it adhered to the procedural requirements for lodgement and approval.

The Commission found that the agreement did meet the better off overall test, as it provided for a reasonable increase in wages and improvements in working conditions that outweighed any potential disadvantages. The Commission also determined that the agreement did not contain any provisions that were contrary to public policy or the objectives of the Fair Work Act. Furthermore, the Commission was satisfied that the agreement appropriately balanced the interests of both parties and complied with the procedural requirements for approval. Therefore, the Commission approved the Subcontractors Carpentry & Joinery Enterprise Agreement 2024-2027.

Exar (Vic) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established