DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Freo Group Pty Ltd
(AG2019/2061)

FREO GROUP PTY LTD SHUTDOWN DIVISION AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER WILLIAMS	PERTH, 22 JULY 2019

Application for approval of the Freo Group Pty Ltd Shutdown Division Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd Shutdown Division Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Freo Group Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 July 2019. The nominal expiry date of the Agreement is 22 July 2022.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Circuit Court, the matter of the Freo Group Pty Ltd, represented by the Fair Work Commission, involved an application for the approval of the Freo Group Pty Ltd Shutdown Division Agreement 2018. The agreement sought to regulate the terms of employment for the division of the company responsible for shutdown activities, which included the dismissal of employees. The primary dispute centred on whether the proposed agreement provided fair and equitable terms for the affected employees.

The legal issues before the court required determination of whether the agreement was in compliance with the requirements set out in the Fair Work Act 2009. Specifically, the court needed to assess if the agreement was a "low paid industry agreement" as defined, if it met the criteria for being an enterprise agreement, and whether it complied with the procedural requirements for employee consultation and approval. Additionally, the court had to consider the fairness of the terms, particularly in relation to the dismissal provisions.

The court examined the procedural aspects and found that the agreement was properly formulated following the necessary consultation with the employees. The terms of the agreement were scrutinised to ensure they were not overly harsh or unfair. In particular, the court addressed the dismissal provisions, determining that they did not unduly penalise employees or breach any statutory protections. The court concluded that the agreement was fair and equitable, and it met the legislative requirements for approval.

Accordingly, the court approved the Freo Group Pty Ltd Shutdown Division Agreement 2018, allowing the company to proceed with the implementation of the agreement as intended. This decision ensures that the employees' rights are protected under the terms of the agreement, while also enabling the company to manage its shutdown activities effectively.

Freo Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established