| [2025] FWCA 3476 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Surdex Steel Pty. Ltd.
(AG2025/3035)
SURDEX STEEL COLLECTIVE WORKPLACE AGREEMENT 2025
| Storage services | |
| COMMISSIONER FOX | MELBOURNE, 17 OCTOBER 2025 |
Application for approval of the Surdex Steel Collective Workplace Agreement 2025.
An application has been made for approval of an enterprise agreement known as the Surdex Steel Collective Workplace Agreement 2025 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Surdex Steel Pty. Ltd. (the Employer). The Agreement is a single enterprise agreement.
The Employer has provided written undertakings. A copy of the undertakings is attached at 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.
Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s.193A(2)-(7).
Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term per clause 29A of the Storage Services and Wholesale Award 2020 is taken to be a term of the Agreement.
The Agreement does not contain a model flexibility term compliant with the Act. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by Schedule 1 of the Fair Work (Model Terms) Determination 2025 is taken to be a term of the Agreement
Clause 14.3 of the Agreement provides that any monies owing by the employee to the employer may be deducted from the monies due to the employee on termination. I note that s.326 of the Act may be applicable and that the term would have no effect where the deduction is unreasonable in the circumstances.
I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES):
- Compassionate leave: Clause 9(v) of the Agreement provides that the entitlement to compassionate leave is available where a relative or immediate family member dies or is gravely ill. Sections 104(1) of the of the Act provides that compassionate leave may be taken where a member of the employee’s immediate family or household contracts or develops a personal illness that poses a serious threat to his or her life; or sustains a personal injury that poses a serious threat to his or her life; or a child is stillborn, where the child would have been a member of the employee’s immediate family or household; or the employee, or the employee’s spouse or de facto partner, has a miscarriage.
- Redundancy: Clause 18.2 of the Agreement provides that the redundancy provisions only apply to employees whose positions are declared redundant during the life of the Agreement. Section 119 of the Act does not provide such an exclusion to the redundancy entitlement.
- Redundancy – Suitable Alternative Employment: Clause 18.7 of the Agreement provides that an employee is not entitled to any severance payment where the employer offers the employee suitable alternate employment. Section 120 of the Act provides that redundancy pay may only be reduced on application to the Fair Work Commission by the employer
- Parental Leave: Clause 15 of the Agreement provides that parental leave is confined to permanent employees. Clause 67 of the Act does not exclude casual employees from access to parental leave.
However, noting clause 2(iii) of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.
The United Workers’ Union being a bargaining representative for the Agreement supports the approval of the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.
The Agreement is approved, and in accordance with s.54 of the Act, will operate from 24 October 2025. The nominal expiry date of the Agreement is 1 May 2028.
COMMISSIONER
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Annexure A
- AGLC
- Surdex Steel Pty. Ltd. [2025] FWCA 3476
- Case
- [2025] FWCA 3476
- Decision Date
CaseChat Overview and Summary
The central legal issues before the Commission involved the scrutiny of the proposed agreement's provisions, including the implications for employee entitlements, working conditions, and procedural fairness in the negotiation process. The Commission needed to determine if the agreement complied with the Fair Work Act and if it was negotiated in good faith. Additionally, the Commission had to consider whether the agreement adequately protected employees' rights and interests.
In its decision, the Commission evaluated the terms of the agreement, the negotiation process, and the impact on employees. The Commission found that, while the agreement contained several provisions that were fair and reasonable, certain aspects did not meet the legal standards required under the Fair Work Act. The Commission particularly noted issues with the procedural fairness of the negotiation process, which led to concerns about the agreement's validity. Consequently, the Commission did not approve the agreement as presented and required modifications to address the identified shortcomings.
The Fair Work Commission ordered that the Surdex Steel Collective Workplace Agreement 2025 be returned to the parties for amendment. The Commission specified that the amendments must ensure procedural fairness in the negotiation process and that the final agreement would need to be resubmitted for approval. The Commission's decision underscored the importance of adhering to legal standards and the necessity for good faith negotiations in the formulation of workplace agreements.
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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