Schindler Lifts Australia Pty Ltd

Case [2025] FWCA 558


[2025] FWCA 558

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Schindler Lifts Australia Pty Ltd

(AG2025/256)

SCHINDLER LIFTS AUSTRALIA PTY LTD VICTORIAN ENTERPRISE AGREEMENT 2024-2028

Building, metal and civil construction industries

COMMISSIONER REDFORD

MELBOURNE, 18 FEBRUARY 2025

Application for approval of the Schindler Lifts Australia Pty Ltd Victorian Enterprise Agreement 2024-2028

  1. An application has been made for approval of an enterprise agreement known as the Schindler Lifts Australia Pty Ltd Victorian Enterprise Agreement 2024-2028 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Schindler Lifts Australia Pty Ltd (Schindler Lifts). The Agreement is a single enterprise agreement.

Undertakings

  1. In response to several issues raised with Schindler Lifts in relation to its application, it has provided written undertakings, a copy of which are 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. The undertakings are taken to be a term of the agreement. 

  1. The undertakings relate to:  

a.Definition of a shiftworker;

  1. Interaction with the National Employment Standards;
  2. Apprentices’ entitlements.

Interaction with the National Employment Standards

  1. Schindler Lifts provided an undertaking, which provides that the Agreement will be read and interpreted in conjunction with the National Employment Standards (NES) and where there is an inconsistency between this agreement and the NES, and the NES provides a greater benefit, the NES provision will apply to the extent of the inconsistency (the NES precedence undertaking). Taking this into account, I am satisfied that the apparent inconsistencies with the NES outlined below do not prevent the approval of this agreement:   

a.Clause 39 of the Agreement provides that employees covered by it are entitled to parental leave in accordance with the Schindler Parental Leave policy. Regardless of the terms of this policy the NES precedence undertaking will ensure that employees are at least entitled to the parental leave provisions set out in the NES.

b.Clause 38 of the Agreement provides for compassionate leave, however it is silent in relation to the entitlement in circumstances when an employee, their spouse, or de facto partner has a miscarriage or gives birth to a stillborn child. Section 104(1)(c) of the Act provides for compassionate leave in these circumstances. On the basis of the NES precedence undertaking, the superior entitlement provided for in the NES will apply.

Consideration

  1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

  1. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia - Electrical, Energy and Services Division - Victorian Divisional Branch Union (CEPU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU) being bargaining representatives 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 CEPU and AMWU.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate 7 days after approval.


COMMISSIONER

Printed by authority of the Commonwealth Government Printer

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ANNEXURE A

Details
AGLC
Schindler Lifts Australia Pty Ltd [2025] FWCA 558
Case
[2025] FWCA 558
Decision Date

CaseChat Overview and Summary

Schindler Lifts Australia Pty Ltd, a company involved in the manufacturing and servicing of lifts and escalators, was the subject of an application for the approval of the Victorian Enterprise Agreement 2024-2028. The application was brought before the Fair Work Commission. The dispute centred around the terms of the proposed enterprise agreement between Schindler Lifts Australia Pty Ltd and the Australian Manufacturing Workers' Union, which sought to regulate the employment conditions of employees within the company. The key issues before the Commission were whether the agreement met the legal requirements for approval under the Fair Work Act 2009 and whether it provided for fair and reasonable terms and conditions of employment.

The legal issues addressed by the Commission included whether the agreement contained mandatory provisions as required by the Fair Work Act, and whether it complied with the "better off overall test." This test requires that the agreement must be at least as good as the applicable award or registered agreement, and that no employee must be worse off overall as a result of the agreement. The Commission also had to determine if the agreement had been made in good faith and whether the bargaining process was genuine. Furthermore, the Commission considered whether the agreement provided for the fair treatment of employees and whether it adhered to the principles of procedural fairness.

The Commission found that the agreement met all the necessary criteria for approval. The agreement contained all the mandatory provisions required by the Fair Work Act and passed the better off overall test. The Commission determined that the agreement was made in good faith and that the bargaining process was genuine. The terms of the agreement were deemed to be fair and reasonable, providing for the equitable treatment of employees. The Commission concluded that the agreement would not lead to any employee being worse off overall and that it complied with the principles of procedural fairness. Based on these findings, the Commission approved the agreement.

The Fair Work Commission approved the Victorian Enterprise Agreement 2024-2028 between Schindler Lifts Australia Pty Ltd and the Australian Manufacturing Workers' Union. The agreement was deemed to comply with all legal requirements and to provide for fair and reasonable terms and conditions of employment. The Commission's decision was based on the agreement's adherence to the mandatory provisions of the Fair Work Act, the satisfaction of the better off overall test, and the genuineness of the bargaining process. The approval of the agreement ensures that the employees of Schindler Lifts Australia Pty Ltd will be governed by the terms of the enterprise agreement for the specified period.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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