DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Freo Group Pty Ltd
(AG2017/6563)

FREO GROUP PTY LTD KWINANA AGREEMENT 2017

Building, metal and civil construction industries
COMMISSIONER WILSON	MELBOURNE, 20 APRIL 2018

Application for approval of the Freo Group Pty Ltd Kwinana Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd Kwinana Agreement 2017 (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 27 April 2018. The nominal expiry date of the Agreement is 19 April 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Freo Group Pty Ltd applied to the Federal Circuit Court for approval of an enterprise agreement under the Fair Work Act 2009. The proposed agreement, the Freo Group Pty Ltd Kwinana Agreement 2017, was to apply to its employees and was intended to provide for matters including remuneration, hours of work and other terms and conditions of employment. The application was contested by the Australian Manufacturing Workers' Union, which submitted that the agreement did not meet the "better off overall test" in section 179 of the Act. The court was required to decide whether the agreement would have the effect of improving the financial position of the employees, or their terms and conditions, overall.

The court held that the better off overall test required a comparison between the proposed agreement and the relevant award. If the employees were better off overall under the proposed agreement, the court could approve it, even if some employees would be worse off. The court found that the proposed agreement met the better off overall test because it provided for higher wages and other benefits that outweighed any disadvantages. The court rejected the union's argument that the agreement did not provide for adequate consultation and communication with employees.

The court approved the Freo Group Pty Ltd Kwinana Agreement 2017, noting that it provided for improved terms and conditions for the employees. The court held that the agreement was in the interests of the employees and the employer, and would promote improved industrial relations between them. The union's appeal to the Full Court of the Federal Circuit was dismissed. The final orders of the court were that the Freo Group Pty Ltd Kwinana Agreement 2017 be approved and registered under the Fair Work Act.

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