Vertilux Corporation Pty Ltd

[2021] FWCA 6687

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Vertilux Corporation Pty Ltd
(AG2021/7938)

VERTILUX AND CFMEU MANUFACTURING ENTERPRISE
AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER YILMAZ	MELBOURNE, 15 NOVEMBER 2021

Application for approval of the Vertilux and CFMEU Manufacturing Enterprise Agreement 2021

[1] An application has been made for approval of an enterprise agreement known as the Vertilux and CFMEU Manufacturing Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Vertilux Corporation Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 are relevant to this application for approval and have been met. The Agreement does not cover all of 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.

[4] The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and in accordance with s.54, will operate from 22 November 2021. The nominal expiry date of the Agreement is 31 October 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Vertilux Corporation Pty Ltd applied to the Fair Work Commission for the approval of the Vertilux and CFMEU Manufacturing Enterprise Agreement 2021. The application was contested by the Australian Manufacturing Workers' Union, which argued that the proposed agreement was not in the best interests of the employees. The Fair Work Commission was required to determine whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. Key issues included whether the agreement provided for fair and reasonable terms and conditions, and whether it had been made in good faith. The Commission considered the views of the parties, the bargaining positions of the employer and employees, and the overall fairness of the proposed agreement.

The Fair Work Commission found that the Vertilux and CFMEU Manufacturing Enterprise Agreement 2021 provided for fair and reasonable terms and conditions for the employees. The Commission noted that the agreement had been the subject of extensive bargaining between the parties and that it had been made in good faith. The Commission also considered the views of the Australian Manufacturing Workers' Union and found that their objections were not sufficient to override the overall fairness of the agreement. The Commission was satisfied that the agreement met the statutory requirements for approval under the Fair Work Act 2009.

Accordingly, the Fair Work Commission approved the Vertilux and CFMEU Manufacturing Enterprise Agreement 2021. The Commission noted that the agreement provided for a number of benefits for the employees, including pay increases, improved working conditions, and enhanced job security. The Commission also noted that the agreement provided for a transparent and fair process for resolving disputes between the employer and employees. The Commission was satisfied that the agreement was in the best interests of the employees and that it met the statutory requirements for approval under the Fair Work Act 2009.

The Fair Work Commission's decision to approve the Vertilux and CFMEU Manufacturing Enterprise Agreement 2021 provides important guidance for employers and employees engaged in enterprise bargaining. The decision highlights the importance of good faith bargaining and the need for agreements to provide for fair and reasonable terms and conditions. The decision also underscores the role of the Fair Work Commission in ensuring that enterprise agreements meet the statutory requirements for approval under the Fair Work Act 2009.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established