Vecta Group Pty Ltd

[2025] FWCA 2366

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Vecta Group Pty Ltd

(AG2025/1952)

AMWU AND VECTA GROUP PTY LTD METAL ENGINEERING NORTH EAST LINK PROJECT 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 Metal Engineering North East Link Project Agreement 2023 – 2026

An application has been made for approval of a greenfields agreement known as the AMWU AND Vecta Group Pty Ltd Metal Engineering North East Link Project 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.

The Applicant has provided written undertakings and 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.

I observe that clause 40 of the Agreement is likely to be inconsistent with the National Employment Standards (NES). However, noting the undertakings referred to above, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

Clause 4 of the Agreement contained a drafting error. The AMWU has provided an updated copy of the Agreement which corrected this by replacing “INSERT COMPANY NAME” with “Vecta Group Pty Ltd.” 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.

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 1 July 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the Australian Manufacturing Workers’ Union (AMWU) and Vecta Group Pty Ltd sought approval for an agreement relating to the Metal Engineering North East Link Project 2023 – 2026. The union and the company applied jointly for the approval of the AMWU and Vecta Group Pty Ltd Metal Engineering North East Link Project Agreement 2023 – 2026. The dispute centred on the interpretation and application of the Fair Work Act 2009, particularly regarding the terms of the agreement and whether it complied with the requirements for approval under the Act.

The primary legal issue before the court was whether the proposed agreement met the criteria for approval as set out in the Fair Work Act. This included examining if the agreement provided for the proper administration of the enterprise, including the terms and conditions of employment, and if it aligned with the broader objectives of the Act, such as facilitating cooperative and productive workplace relations. The court had to determine if the agreement adequately balanced the interests of the employees and the employer while complying with the legal standards and principles established by the Act.

The Fair Work Commission found that the proposed agreement met all the necessary criteria for approval. The agreement was deemed to facilitate effective and cooperative workplace relations, providing clear terms and conditions that were fair and reasonable. The Commission highlighted that the agreement included provisions for dispute resolution, employee entitlements, and workplace safety, all of which were consistent with the objectives of the Fair Work Act. Consequently, the Commission approved the agreement, recognising that it promoted a productive and harmonious working environment while adhering to the legal requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established