s.218A - Enterprise Agreement

ADAIRS SUPPLY CHAIN - VIC ENTERPRISE AGREEMENT 2024

Application to vary an agreement to correct or amend errors, defects or irregularities

[1] Adairs Retail Group Pty Ltd (Adairs) has applied under s 218A(2)(b)(i) of the Act for the Commission to exercise its power under s 218A(1) to vary the Adairs Supply Chain - Vic Enterprise Agreement 2024 (Agreement). The Agreement commenced on 25 December 2024.

[2] Section 218A provides as follows:

218A Variation of enterprise agreements to correct or amend errors, defects or irregularities

(1) The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).

(2) The FWC may vary an enterprise agreement under subsection (1):

(i) one or more of the employers covered by the agreement;

(iii) an employee organisation covered by the agreement.

(3) If the FWC varies an enterprise agreement under subsection (1), the variation operates from the day specified in the decision to vary the agreement.

[3] In its application form, Adairs explains the nominal expiry date in clause 3.3 of the Agreement which reads "1 June 2026" was included in error because it "does not align to the negotiated outcomes agreed to and communicated to covered employees at the time of voting." It should instead read "1 June 2027."

[4] Adairs made the following submissions to support the conclusion the 1 June 2026 date was an error:

• Adairs sent a letter to its employees headed "Proposed - Adairs Supply Chain - Vic Enterprise Agreement 2024" prior to the vote which explained the proposed agreement's terms. It included under the heading "What is an Enterprise Agreement?" the following:

"An enterprise agreement is an agreement made between Adairs and its team members that contains terms and conditions of employment, including wages, for the period agreed (maximum 4 years) from the date of approval (Adairs Supply Chain - Vic Enterprise Agreement 2024 is proposed for 3 years)."

• The Wage Table on page 28 of the Agreement provides three annual pay increases on June 2024, June 2025 and June 2026. This infers the nominal expiry date is later than the date currently provided in clause 3.3.
• The United Workers' Union (UWU), which is covered by the Agreement is "in agreement that the current expiry date in the EA is an error".

[5] On Monday, 24 November 2025, this matter was listed for a mention hearing. Ms. Elizabeth Bingham, Senior People & Culture Business Partner appeared for Adairs and Ms. Alycia Economidis, a Coordinator - Logistics at the UWU appeared for that union (amongst others). Both parties support the variation being made under s 218A. At the hearing I asked Ms Bingham to provide a witness statement supporting the conclusion the nominal expiry date currently in the Agreement was included in error.

[6] Ms. Bingham filed a witness statement. In that statement, she explains several earlier iterations of the Agreement were drafted "based around a 2 year life span". On 3 October 2024, at the final bargaining meeting, the parties agreed the agreement would be for a three (rather than two) year term. She went on to explain the process by which the Agreement was put to a vote after that 3 October meeting:

"This document was updated with several amendments ... including the insertion of the pay table outlining the pay increases to be applied over a 3-year period. This agreement went to vote, with supporting information developed to communicate key changes inclusive of the term of the agreement being that of 3 years."

[7] On the material before me, I am satisfied the reference in clause 3.3 to a nominal expiry date of "1 June 2026" is an obvious error. It was intended by the parties to read "1 June 2027". By s 218A, I therefore order the Agreement be varied to correct the obvious error so the nominal expiry date that appears in clause 3.3 as "1 June 2026" be replaced with "1 June 2027".

[8] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision. The variation shall operate from 26 November 2025.

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