Vecta Group Pty Ltd Summary

[2024] FWCA 3552

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vecta Group Pty Ltd

(AG2024/3644)

VECTA GROUP AND AMWU GREENFIELD GEELONG MAINTENANCE & SERVICES AGREEMENT 2024-2026

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 9 OCTOBER 2024

Application for approval of the Vecta Group and AMWU Greenfield Geelong Maintenance & Services Agreement 2024 – 2026.

An application has been made for approval of an enterprise agreement known as the Vecta Group and AMWU Greenfield Geelong Maintenance & Services Agreement 2024 - 2026 (the Agreement). The application is made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

This is a greenfields agreement that meets the requirements of s.172(2)(b) of the Act. I am satisfied each of the requirements of ss.186 and 187 of the Act relevant to this application have been met. I am satisfied the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union is entitled to represent the industrial interests of the 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.

I note the Agreement was made with the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union and the Agreement covers that organisation under s.53(2)(b).

The Employer has provided a written undertaking. A copy of this undertaking is attached in Annexure A. I am satisfied 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. I therefore note the undertaking is taken to be a term of the Agreement under s.201(3) of the Act.

Subject to the undertaking, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in ss.186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Agreement is approved 9 October 2024. It will operate from 16 October 2024 as required by s.54 of the Act. The nominal expiry date is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Vecta Group Pty Ltd recently brought an application before the Fair Work Commission, seeking approval for the Vecta Group and Australian Manufacturing Workers’ Union (AMWU) Greenfield Geelong Maintenance & Services Agreement 2024 – 2026. The applicant is a company engaged in providing maintenance and services at its Geelong facility, and the respondent union is a trade union representing employees in the manufacturing industry. The primary focus of the application was to obtain formal approval for the terms and conditions of employment as outlined in the proposed enterprise agreement.

The legal issues before the Commission centred on whether the proposed agreement met the statutory requirements under the Fair Work Act 2009. These requirements included ensuring that the agreement was in the best interests of the employees and provided a safety net for workers' entitlements. The Commission had to examine whether the agreement contained all the required minimum terms and conditions, including those specified in the Fair Work Act and the relevant award, and whether it met the 'better off overall test'. Additionally, the Commission needed to assess if the agreement was made in good faith and whether it complied with procedural fairness.

In delivering its decision, the Commission carefully reviewed the terms and conditions of the proposed agreement, considering the evidence presented by both parties. The Commission found that the agreement met all statutory requirements and was in the best interests of the employees. It was determined that the agreement provided a safety net for workers' entitlements and included all the required minimum terms and conditions. The Commission also concluded that the agreement was made in good faith and satisfied the 'better off overall test'. As a result, the Commission approved the Vecta Group and AMWU Greenfield Geelong Maintenance & Services Agreement 2024 – 2026.

The Fair Work Commission approved the proposed agreement, which is now legally binding between the parties. This outcome ensures that the terms and conditions of employment for the employees at the Geelong facility are governed by the approved agreement, providing a clear framework for their employment relationship.

Vecta Group Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established