Sunstate Cement Ltd Summary

[2025] FWCA 3115

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sunstate Cement Ltd

(AG2025/2962)

SUNSTATE CEMENT LTD ENTERPRISE AGREEMENT 2025

Cement and concrete products
COMMISSIONER HUNT	BRISBANE, 17 SEPTEMBER 2025

Application for approval of the Sunstate Cement Ltd Enterprise Agreement 2025

Sunstate Cement Ltd (the Employer) has applied for approval of an enterprise agreement known as the Sunstate Cement Ltd Enterprise Agreement 2025 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the Australian Workers’ Union (AWU) regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide any views. No views were received.

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. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

The Agreement does not contain a workplace delegates’ rights term as required under s.205A of the Act for agreements made on or after 1 July 2024. Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term prescribed by the Cement, Lime and Quarrying Award 2020 is attached to the Agreement and taken to be a term of it.

I have taken into consideration the material filed in the Commission. 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The AWU, being a bargaining representative for the Agreement, has given notice under s.183 it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the AWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 September 2025. The nominal expiry date of the Agreement is 30 June 2029.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A – Undertakings

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Sunstate Cement Ltd and its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred on the approval of an enterprise agreement proposed for 2025, which aimed to regulate the terms and conditions of employment for the workers. The legal issues that the Commission had to determine were primarily whether the agreement met the necessary criteria for approval under the Fair Work Act 2009, including the requirement for "no-disadvantage" and "better off overall" tests. Additionally, the Commission needed to assess whether the agreement complied with the good faith bargaining requirements.

The Commission began its analysis by examining the submissions from both parties. It noted that Sunstate Cement Ltd argued that the proposed agreement would facilitate operational efficiency and cost-effectiveness, which was critical for its business sustainability. On the other hand, the CFMEU contended that the proposed changes would negatively impact the employees' working conditions and entitlements. The Commission then evaluated the agreement against statutory provisions, considering the "no-disadvantage" test to ensure that employees would not be worse off by being covered by the agreement compared to their existing terms. It also assessed the "better off overall" test to ensure that employees would be better off overall under the new agreement. The Commission considered various factors, including wages, hours of work, leave provisions, and other employment conditions. Ultimately, the Commission found that the proposed agreement met the criteria for approval, as it did not disadvantage any employee and provided benefits that outweighed any detriments.

In reaching its decision, the Fair Work Commission concluded that the proposed enterprise agreement was fair and appropriate for approval. It found that the agreement satisfied the "no-disadvantage" and "better off overall" tests, and that the bargaining process was conducted in good faith. The Commission emphasised the importance of the agreement in achieving operational efficiencies while maintaining fair conditions for the employees. The decision was made in the context of the overall economic and industrial climate, ensuring that the terms were balanced and equitable for both parties. The Commission approved the Sunstate Cement Ltd Enterprise Agreement 2025, and its decision was binding on the parties involved.

Sunstate Cement Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established