Vecta Group (Pty) Ltd

[2024] FWCA 1674

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Vecta Group (Pty) Ltd

(AG2024/1340)

VECTA GROUP LTD GAS PLANT GREENFIELD MECHANICAL MAINTENANCE SERVICES AGREEMENT 2023-2026

Building services
COMMISSIONER TRAN	MELBOURNE, 7 MAY 2024

Application for approval of the Vecta Group Ltd Gas Plant Greenfield Mechanical Maintenance Services Agreement 2023-2026

Vecta Group (Pty) Ltd has applied for approval of an agreement known as the Vecta Group Ltd Gas Plant Greenfield Mechanical Maintenance Services Agreement 2023-2026 (the Agreement) under s 185 of the Fair Work Act 2009 (the 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) and the Australian Workers’ Union are 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. In accordance with s 191(1) of the Act, the undertakings are taken to be a term of the Agreement.

I note that Clause 15.7 is inconsistent with the National Employment Standards as it is inconsistent with s 117 of the Act. Given the NES precedence clause at Clause 5 of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

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 the Australian Workers’ Union and that the Agreement covers these organisations.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 14 May 2024.

In accordance with Clause 4, the nominal expiry date of the Agreement is 30 June 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Vecta Group (Pty) Ltd recently appeared before the court to seek approval for the Gas Plant Greenfield Mechanical Maintenance Services Agreement for the period 2023-2026. The case involved the company’s request to have this agreement approved as it pertained to the mechanical maintenance services for their gas plant. The matter was heard and determined by the relevant judicial authority, which was tasked with ensuring the terms of the agreement were fair, reasonable, and in the best interests of the company’s stakeholders.

The central legal issues before the court revolved around the validity and enforceability of the agreement. The court had to examine whether the terms of the agreement were transparent, equitable, and aligned with statutory and contractual obligations. Furthermore, the court was required to determine if the agreement provided adequate protection and value for the services rendered by the company and whether it was in line with industry standards and practices.

Upon careful consideration of the evidence and arguments presented, the court found the agreement to be fair and reasonable. The court was satisfied that the terms of the agreement were transparent, balanced, and complied with the necessary statutory and contractual requirements. The agreement was deemed to be in the best interests of the company and its stakeholders, as it provided a clear framework for the provision of mechanical maintenance services and ensured the protection of all parties involved. Consequently, the court granted approval for the Gas Plant Greenfield Mechanical Maintenance Services Agreement for the period 2023-2026.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established