Inductotherm Group Australia Pty Ltd

[2025] FWCA 1488

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Inductotherm Group Australia Pty Ltd

(AG2025/1253)

INDUCTOTHERM GROUP AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
DEPUTY PRESIDENT O’NEILL	MELBOURNE, 5 MAY 2025

Application for approval of the Inductotherm Group Australia Pty Ltd Enterprise Agreement 2025.

An application has been made for approval of an enterprise agreement known as the Inductotherm Group Australia Pty Ltd Enterprise Agreement 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Inductotherm Group Australia Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. Inductotherm Group Australia Pty Ltd and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) have both expressed a view that the Agreement passes the better off overall test. I have given primary consideration to this common view in accordance with s.193A(4) of the Act.

The Notice of Representational Rights (NERR) distributed to employees is a pre-6 June 2023 reforms version. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor technical departure from the NERR requirements under s.174 of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this error. Accordingly, I exercise the discretion conferred by s.188(5) of the Act.

The Agreement does not contain a flexibility term that meets the requirements of the Act. 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.

The AMWU 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.

I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

· Clause 19.10 - Employees exempted.

However, noting clause 6 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 Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 May 2025. The nominal expiry date of the Agreement is 30 June 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Inductotherm Group Australia Pty Ltd to the Fair Work Commission for the approval of their Enterprise Agreement 2025. This agreement was intended to regulate the employment conditions of their workers, and the application was made to ensure compliance with the Fair Work Act 2009. The Fair Work Commission was tasked with determining whether the agreement met the statutory requirements for approval, including considerations such as the agreement's compliance with the provisions of the Act, the process by which it was made, and its alignment with the principles of the national workplace relations system.

The central legal issues before the Fair Work Commission revolved around whether the agreement complied with the various statutory criteria outlined in the Fair Work Act. Key aspects included the procedural fairness in the agreement's development, the fairness of its terms, and its conformity with the overarching objectives of the national workplace relations framework. The Commission also had to consider whether the agreement provided for an appropriate balance between the interests of the employer and the employees, particularly in terms of wages, conditions, and dispute resolution mechanisms.

In reaching its decision, the Fair Work Commission examined the evidence presented by both parties and evaluated the agreement against the statutory criteria. The Commission found that the agreement was procedurally sound and that it contained terms that were fair and reasonable, given the context of the bargaining process and the broader workplace relations system. The Commission also determined that the agreement did not undermine the objectives of the Act and was in line with the principles of good faith bargaining. Consequently, the application for approval was successful, and the agreement was endorsed as meeting the necessary legal standards.

The Fair Work Commission approved the Inductotherm Group Australia Pty Ltd Enterprise Agreement 2025, confirming its compliance with the Fair Work Act. The agreement is now legally binding for the parties involved, setting out the terms of employment for the specified period. This decision ensures that the agreement operates within the framework of the national workplace relations system, maintaining a balance between the rights and obligations of employers and employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established