Vecta Group Pty Ltd

[2024] FWCA 3551

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vecta Group Pty Ltd

(AG2024/3627)

VECTA GROUP AND AMWU GREENFIELD GEELONG AGREEMENT 2024 - 2027

Manufacturing and associated industries
COMMISSIONER FOX	MELBOURNE, 9 OCTOBER 2024

Application for approval of the Vecta Group and AMWU Greenfield Geelong Agreement 2024 – 2027.

An application has been made for approval of an enterprise agreement known as the Vecta Group and AMWU Greenfield Geelong Agreement 2024 – 2027 (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 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Vecta Group Pty Ltd sought approval for an enterprise agreement from the Fair Work Commission. The Australian Manufacturing Workers' Union (AMWU) had negotiated the Vecta Group and AMWU Greenfield Geelong Agreement 2024 – 2027 on behalf of the employees. The dispute centred on whether the agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the applicant questioned whether the agreement was in the public interest and whether it complied with the requirements for genuine agreement, including the involvement of genuine employee representatives and fair negotiation.

The legal issues before the Commission involved verifying the genuineness of the agreement and the negotiation process. The applicant argued that the AMWU was not a genuine representative of the employees, thus casting doubt on the legitimacy of the negotiation process. Additionally, the Commission had to consider whether the agreement was in the public interest, taking into account factors such as its impact on employment conditions, economic efficiency, and the broader industrial relations system.

In addressing these issues, the Fair Work Commission examined the evidence regarding the AMWU's representation of the employees. The Commission found that the union had a significant presence in the workplace and had been involved in previous negotiations, which supported its status as a genuine representative. Furthermore, the Commission assessed the content of the agreement and concluded that it met the public interest criteria. The agreement was deemed to provide fair and reasonable terms for employees while also considering the broader economic and industrial relations context.

The Commission approved the Vecta Group and AMWU Greenfield Geelong Agreement 2024 – 2027, finding it to be a genuine agreement that met the statutory requirements. The decision was based on the evidence that the AMWU was a genuine representative of the employees and that the agreement was in the public interest. The applicant's concerns regarding the negotiation process and the public interest were not substantiated by the evidence presented.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established