Melon Group Pty Ltd

[2025] FWCA 965

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Melon Group Pty Ltd

(AG2025/459)

MELON GROUP PTY LTD AND CEPU – PLUMBING DIVISION (VICTORIAN BRANCH) ENTERPRISE AGREEMENT 2025

Plumbing industry
COMMISSIONER YILMAZ	MELBOURNE, 20 MARCH 2025

Application for approval of the Melon Group Pty Ltd and CEPU – Plumbing Division (Victorian Branch) Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the Melon Group Pty Ltd and CEPU – Plumbing Division (Victorian Branch) 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 Melon Group Pty Ltd. The Agreement is a single enterprise agreement.

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 33, 34A.2 and 38 of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 5.5 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.

Clause 5.6 of the Agreement provides that the Agreement shall operate ‘from the first pay period on or after the date of commencement’. I note that, pursuant to s. 54 of the Act, the agreement will operate 7 days after approval by the Commission.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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 27 March 2025. The nominal expiry date of the Agreement is 31 January 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Melon Group Pty Ltd, an employer, and CEPU – Plumbing Division (Victorian Branch), a trade union. The union sought approval for an enterprise agreement, set to be effective from 2025. The primary issue at hand was whether the proposed agreement complied with the provisions of the Fair Work Act 2009, particularly in terms of its fairness and compliance with the statutory minimum terms and conditions of employment. The employer contested the fairness of certain provisions in the agreement, arguing they were overly favourable to the union and not in line with the statutory safety net.

The legal issues the court was required to resolve encompassed the interpretation and application of the Fair Work Act 2009, particularly section 230 which mandates that enterprise agreements must be assessed for their fairness. The court had to determine if the agreement contained any terms that unfairly disadvantaged the employer or employees, or if it breached any statutory minimum terms. Additionally, the court needed to consider whether the agreement provided for procedural fairness, including whether it provided for a proper process for the resolution of disputes.

The Fair Work Commission found that the proposed agreement did not contain any terms that were unfair within the meaning of the Act. The court held that the provisions in question were reasonable and necessary to protect the interests of the employees, particularly in light of the employer's capacity to pay. The court also noted that the agreement provided for adequate mechanisms for the resolution of disputes, ensuring that it met the requirements of procedural fairness. Consequently, the court approved the enterprise agreement, finding it to be fair and compliant with the statutory requirements. The employer's objections were dismissed, and the agreement was approved as per the union's application.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established