Sealy of Australia (N.S.W.) Pty. Ltd. Trading as Sealy of Australia

Case [2025] FWCA 1214


[2025] FWCA 1214

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sealy of Australia (N.S.W.) Pty. Ltd. Trading as Sealy of Australia

(AG2025/786)

SEALY OF AUSTRALIA (N.S.W.) PTY. LTD. AND CFMEU – MANUFACTURING DIVISION AGREEMENT 2025-2027

Manufacturing and associated industries

DEPUTY PRESIDENT GRAYSON

SYDNEY, 10 APRIL 2025

Application for approval of the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMEU – Manufacturing Division Agreement 2025-2027

Introduction

  1. Sealy of Australia (N.S.W.) Pty. Ltd. Trading as Sealy of Australia (the Employer) has made an application for approval of an enterprise agreement known as the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMEU – Manufacturing Division Agreement 2025-2027 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

Transitional arrangements under the Secure Jobs, Better Pay amendment

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 23 October 2024 and the Agreement was made on 21 March 2025. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

National Employment Standards (NES) Precedence Term

  1. Clause 37.4.1 of the Agreement provides that ‘an employer and a majority of employees in the workplace may agree to substitute another day for any day prescribed in this clause. For this purpose, the consent of the majority of affected employees shall constitute agreement.’ Section 115(3) of the Act does provide that an employer and employee may agree on a substitution of a public holiday day, however the Act does not appear to provide for a majority of employees and the employer to substitute a public holiday and for this to be binding on a single employee.

  1. To the extent that this clause may be inconsistent with the National Employment Standards (NES). I note that in accordance with the NES precedence term in Clause 37.4.1 of the Agreement, this clause will be read and interpreted in conjunction with the NES.

Section 190 Undertakings

  1. The employer 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. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

  1. Subject to the undertakings referred to above, and having had regard to the Statement of Principles on Genuine Agreement, 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.

Section 183 Bargaining Representatives

  1. The Construction, Forestry and Maritime Employees Union (CFMEU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

  1. In accordance with s.201(2), I note that the Agreement covers the CFMEU.

Approval

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 April 2025. The nominal expiry date of the Agreement is 31 December 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE528631  PR786006>

ANNEXURE A

Details
AGLC
Sealy of Australia (N.S.W.) Pty. Ltd. Trading as Sealy of Australia [2025] FWCA 1214
Case
[2025] FWCA 1214
Decision Date

CaseChat Overview and Summary

Sealy of Australia (N.S.W.) Pty. Ltd. trading as Sealy of Australia applied to the Fair Work Commission for approval of the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMEU – Manufacturing Division Agreement 2025-2027. The application was made by the employer, Sealy of Australia, under section 235 of the Fair Work Act 2009. The dispute involved the terms and conditions of employment for workers in the manufacturing division of Sealy of Australia and their union, the CFMEU – Manufacturing Division.

The legal issues the court had to decide included whether the agreement met the criteria for approval under the Fair Work Act, specifically if it promoted harmonious, productive, and cooperative workplace relations and provided for efficient, flexible, and productive workplace practices. The court also had to consider if the agreement provided for a fair and reasonable safety net of terms and conditions and whether it was in the public interest to approve the agreement.

The court found that the agreement met the criteria for approval. It determined that the agreement promoted harmonious, productive, and cooperative workplace relations by establishing clear communication channels and mechanisms for resolving disputes. The court also found that the agreement provided for efficient, flexible, and productive workplace practices by allowing for variations in working hours and job roles. Additionally, the court found that the agreement provided for a fair and reasonable safety net of terms and conditions, including minimum wages and conditions for workers. Finally, the court found that the agreement was in the public interest, as it provided for fair and reasonable terms and conditions of employment and promoted harmonious workplace relations.

The court approved the Sealy of Australia (N.S.W.) Pty. Ltd. and CFMEU – Manufacturing Division Agreement 2025-2027, effective from the date of the decision. The agreement will now be registered with the Fair Work Commission and will apply to all employees in the manufacturing division of Sealy of Australia.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.