Statewide Vic Pty Ltd Summary

[2024] FWCA 2685

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Statewide Vic Pty Ltd

(AG2024/2431)

STATEWIDE VIC PTY LTD & THE AUSTRALIAN WORKERS’ UNION AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 19 JULY 2024

Application for approval of the Statewide Vic Pty Ltd & The Australian Workers’ Union Agreement 2024

An application has been made for approval of a greenfields agreement known as the Statewide Vic Pty Ltd & The Australian Workers’ Union Agreement 2024 (Agreement). The application was made by Statewide Vic Pty Ltd (Employer) pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act).

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s 187(5)(a) of the Act, I am satisfied that The Australian Workers’ Union (AWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement as required by s 187(5)(b).

The Employer has provided written undertakings. A copy of the undertaking is attached in Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement. In accordance with s 191(1) of the Act, the undertaking is taken to be a term of the Agreement.

Pursuant to s 53(2)(b) of the Act I note the Agreement was made with the AWU and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 26 July 2024. The nominal expiry date of the Agreement is 28 February 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission involved Statewide Vic Pty Ltd, an employer, and The Australian Workers' Union, representing employees. The dispute centred around the application for approval of the Statewide Vic Pty Ltd & The Australian Workers’ Union Agreement 2024, which aimed to regulate the terms and conditions of employment for employees covered by the agreement. The Fair Work Commission was tasked with determining whether the agreement met the necessary requirements for approval under the Fair Work Act 2009.

The legal issues before the Commission included whether the agreement was a "good faith" bargaining outcome, whether it complied with the "better off overall test", and if it met the requirements of being a "modern award". The Commission had to consider the submissions from both parties, the evidence provided, and the broader implications for industrial relations in Australia. Of particular importance was whether the agreement provided a fair and reasonable set of terms for employees, while also being in line with the principles of good faith bargaining.

After careful consideration of the evidence and submissions, the Commission found that the agreement met the necessary criteria for approval. The Commission determined that the agreement was a genuine product of good faith bargaining and that it provided employees with terms and conditions that were at least as good as those provided by the relevant modern award. The Commission also found that the agreement complied with the better off overall test, as it provided employees with overall benefits that were at least equal to what they would receive under the award. Consequently, the Commission approved the agreement, recognising its potential to foster a productive and fair workplace environment.

In its final orders, the Commission approved the Statewide Vic Pty Ltd & The Australian Workers’ Union Agreement 2024, effective from the date of the decision. The Commission also directed that the agreement be registered with the Fair Work Commission, and that it be provided to all employees covered by the agreement. The decision sets a precedent for similar agreements and reinforces the importance of good faith bargaining in industrial relations.

Statewide Vic Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established