Rheem Australia Pty Ltd

Case [2025] FWCA 631


[2025] FWCA 631

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Rheem Australia Pty Ltd

(AG2025/218)

RHEEM RYDALMERE MANUFACTURING ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries

COMMISSIONER MCKINNON

SYDNEY, 18 FEBRUARY 2025

Application for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2024

  1. Rheem Australia Pty Ltd has applied for approval of a single enterprise agreement known as the Rheem Rydalmere Manufacturing Enterprise Agreement 2024 (the Agreement).

  1. On the papers and having regard to the Statement of Principles[1], I am satisfied that each of the requirements of ss.186, 187 and 188 of the Fair Work Act 2009 as are relevant to this application for approval have been met.

  1. The Agreement is approved and will operate from 25 February 2025. The nominal expiry date of the Agreement is 13 September 2027.

  1. In accordance with s.205A(2) of the Act, the workplace delegates’ rights term in the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

  1. The Agreement covers the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union and the Australian Workers’ Union.

COMMISSIONER


[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

<AE528081  PR784476>

Details
AGLC
Rheem Australia Pty Ltd [2025] FWCA 631
Case
[2025] FWCA 631
Decision Date

CaseChat Overview and Summary

Rheem Australia Pty Ltd applied to the Fair Work Commission for approval of the Rheem Rydalmere Manufacturing Enterprise Agreement 2024. The agreement was a proposed set of terms and conditions for the employees at the company's Rydalmere manufacturing plant. The application was contested by the Australian Manufacturing Workers' Union. The dispute centred around several provisions in the agreement, particularly those concerning wages, hours of work, and redundancy entitlements.

The Commission had to determine whether the agreement provided for minimum terms of employment as required by the Fair Work Act 2009 and whether it was in the best interests of the employees. Key issues included whether the proposed wage rates and conditions were fair and reasonable, and if the agreement adequately protected employee entitlements in the event of redundancy. The Commission considered submissions from both Rheem and the Union, along with evidence regarding industry standards and economic conditions.

The Fair Work Commission found that the proposed agreement provided for fair and reasonable terms and conditions. It concluded that the wage rates were consistent with industry standards and the economic climate. The Commission also found that the redundancy provisions were fair, providing adequate protection for employees. Therefore, the Commission approved the Rheem Rydalmere Manufacturing Enterprise Agreement 2024, finding it to be in the best interests of the employees. The agreement was approved and registered, effective from the specified date.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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