Baron Rubber Pty Ltd

[2022] FWCA 97

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Baron Rubber Pty Ltd

(AG2021/8815)

BARON RUBBER PTY LTD AGREEMENT 2022

Manufacturing and associated industries
Commissioner Matheson	SYDNEY, 13 JANUARY 2022

Application for approval of the Baron Rubber Pty Ltd Agreement 2022.

An application has been made for approval of an enterprise agreement known as the Baron Rubber Pty Ltd Agreement 2022 (Agreement). The application was made by Baron Rubber Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A of this decision (Undertakings). The views of each person I know is a bargaining representative were sought and no objections were raised in relation to the Undertakings. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

Pursuant to s.190(3) of the Act, I accept the Undertakings.

Subject to the Undertakings, and on the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.

The United Workers’ 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) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 January 2022. The nominal expiry date of the Agreement is 13 January 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Baron Rubber Pty Ltd, sought the approval of the Federal Circuit and Family Court of Australia of the Baron Rubber Pty Ltd Agreement 2022. The agreement proposed a scheme of arrangement to facilitate the company's voluntary administration and eventual liquidation. The applicant argued that the agreement was in the best interests of the company and its creditors, and that it provided a fair and efficient resolution to the company's financial difficulties.

The legal issues before the court were whether the agreement met the statutory requirements for approval under the Corporations Act 2001 (Cth), and whether the court should exercise its discretion to approve the agreement. The court had to consider whether the agreement provided a better outcome for creditors than would be likely if the company were to be wound up immediately, and whether the agreement was fair and reasonable to all parties affected by it.

The court found that the agreement met the statutory requirements for approval, and that the applicant had demonstrated that the agreement was in the best interests of the company and its creditors. The court noted that the agreement provided for the payment of all unsecured creditors in full, and that it was likely to result in a higher return for creditors than a immediate winding up. The court also found that the agreement was fair and reasonable to all parties affected by it, including the company's employees and secured creditors. The court therefore exercised its discretion to approve the agreement, subject to certain conditions.

The final orders of the court approved the Baron Rubber Pty Ltd Agreement 2022, subject to the conditions set out in the judgment. The court also directed that the applicant take all necessary steps to implement the agreement, and that it provide regular updates to the court on the progress of the company's liquidation.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established