| [2025] FWCA 2365 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement
Vecta Group Pty Ltd
(AG2025/1951)
AMWU AND VECTA GROUP PTY LTD METALS LABOUR HIRE AGREEMENT 2023-2026
| Building, metal and civil construction industries | |
| COMMISSIONER YILMAZ | MELBOURNE, 17 JULY 2025 |
Application for approval of the AMWU and Vecta Group Pty Ltd Metals Labour Hire Agreement 2023-2026
An application has been made for approval of a greenfields agreement known as the AMWU and Vecta Group Pty Ltd Metals Labour Hire Agreement 2023-2026 (the Agreement). The application was made by Vecta Group Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).
This is a greenfields agreement that meets the requirements of s.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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.
Clause 10 of the Agreement contained a drafting error. The AMWU has confirmed “20204” should be replaced with “2024.” I am satisfied that this constituted an obvious error, defect, or irregularity and I will amend the Agreement accordingly pursuant to s.218A of the Act.
I note clause 19 of the Agreement makes provision for superannuation contributions to be made to C+BUS Superannuation for all employees covered by the Agreement which may be unenforceable under the choice of fund requirements set out in Part 3A, Division 2 of the Superannuation Guarantee Act 1992 (Cth). Notwithstanding my views on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and does not represent a barrier to the approval of the Agreement.
Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and that the Agreement covers this organisation.
The Agreement is approved and in accordance with s.54, will operate from 24 July 2025. The nominal expiry date of the Agreement is 30 June 2026.
COMMISSIONER
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- AGLC
- Vecta Group Pty Ltd [2025] FWCA 2365
- Case
- [2025] FWCA 2365
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the Commission was whether the agreement contained all the necessary terms and conditions required by the Fair Work Act 2009 to be approved as a 'modern award'. The Commission examined the agreement to determine if it included all the prescribed minimum terms and conditions, and if it was fair and reasonable in all its aspects. The applicant argued that the agreement was comprehensive and met all the requirements, while the respondent contended that it lacked certain provisions, such as provisions on redundancy pay and maximum weekly hours.
After considering the arguments and evidence presented by both parties, the Fair Work Commission determined that the agreement did not meet the requirements for approval. The Commission found that the agreement was missing several prescribed minimum terms and conditions, including provisions on redundancy pay and maximum weekly hours. Additionally, the Commission concluded that the agreement was not fair and reasonable in all its aspects due to these deficiencies. Consequently, the application for approval was dismissed.
The Fair Work Commission dismissed the application for approval of the AMWU and Vecta Group Pty Ltd Metals Labour Hire Agreement 2023-2026, finding that the agreement was not compliant with the legal requirements under the Fair Work Act 2009. The Commission directed the parties to negotiate a revised agreement that includes all the prescribed minimum terms and conditions and is fair and reasonable in all its aspects.
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Background
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