Furnace Engineering Pty Ltd Summary

[2025] FWCA 2457

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement
Furnace Engineering Pty Ltd
(AG2025/2271)
FURNACE ENGINEERING PTY LTD ENTERPRISE AGREEMENT 2025 – 2028

Manufacturing and associated industries

COMMISSIONER MIRABELLA

MELBOURNE, 25 JULY 2025

Application for approval of the Furnace Engineering Pty Ltd Enterprise Agreement 2025 - 2028
[1]      Furnace Engineering Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Furnace Engineering Pty Ltd Enterprise Agreement 2025 – 2028 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.
[2]      The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to the enterprise agreement approval processes in Part 2–4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement was 5 June 2025 and the Agreement was made on 27 June 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
[3]      The Agreement title in the Notice of Employee Representation Rights (NERR) differs from the title of the Agreement to be approved. Pursuant to s.188(5) of the Act, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural error made in relation to the requirement in s.174(1A) of the Act. I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed to within the meaning of s.188(5) of the Act.
[4]      The Applicant 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.
[5]       In compliance with s 190(4) of the Act, the bargaining representatives’ views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.
[6]      Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.
[7]      The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 August 2025. The nominal expiry date of the Agreement is 30 June 2028.

COMMISSIONER
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Appendix A

CaseChat Overview and Summary

The parties involved in this case were Furnace Engineering Pty Ltd and its employees, represented by their union. The dispute centred around the approval of an enterprise agreement that was to cover the period from 2025 to 2028. The Fair Work Commission was the court that heard this matter. The central legal issues that the Commission needed to address were whether the proposed agreement met the requirements under the Fair Work Act 2009, and if it contained any terms that were against the public interest.

The Fair Work Commission examined whether the agreement was made in good faith, and if it contained provisions that were fair and reasonable. The Commission also considered the extent to which the agreement provided for genuine flexibility in the workplace and whether it contained any terms that were contrary to the public interest. The Commission was required to ensure that the agreement did not undermine the basic entitlements of employees, and that it did not contain any terms that were excessively harsh or unfair.

After careful consideration of the arguments presented by both parties, the Fair Work Commission found that the proposed enterprise agreement met the necessary requirements under the Fair Work Act. The Commission determined that the agreement was made in good faith and contained provisions that were fair and reasonable. The Commission also found that the agreement provided for genuine flexibility in the workplace and did not contain any terms that were against the public interest. Consequently, the Commission approved the Furnace Engineering Pty Ltd Enterprise Agreement 2025 - 2028.

The Fair Work Commission's decision in this case highlights the importance of ensuring that enterprise agreements are made in good faith and contain fair and reasonable provisions. Employers and employees must work together to create agreements that provide for genuine flexibility in the workplace, while also protecting the basic entitlements of employees. This case also underscores the role of the Fair Work Commission in approving enterprise agreements that meet the necessary requirements under the Fair Work Act.

Furnace Engineering Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Manufacturing and associated industries
COMMISSIONER MIRABELLA	MELBOURNE, 25 JULY 2025