DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Freo Group Pty Ltd
(AG2015/5769)

FREO GROUP PTY LTD NORTH WEST AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	MELBOURNE, 19 OCTOBER 2015

Application for approval of the Freo Group Pty Ltd North West Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd North West Agreement 2015 (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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The Construction, Forestry, Mining and Energy Union and the Transport Workers’ Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[4] The Agreement was approved on 19 October 2015 and, in accordance with s.54, will operate from 26 October 2015. The nominal expiry date of the Agreement is 19 October 2019.

COMMISSIONER

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CaseChat Overview and Summary

Freo Group Pty Ltd applied to the Fair Work Commission for the approval of the Freo Group Pty Ltd North West Agreement 2015. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement in question was an enterprise agreement that aimed to regulate the terms and conditions of employment for employees within the North West region of the Freo Group's operations. The CFMEU argued that the agreement did not meet the criteria for approval under the Fair Work Act 2009, specifically that it did not ensure employees were paid at the relevant award rates or conditions, and that it contained terms that were not genuinely agreed upon by the employees.

The primary legal issues the Commission had to address were whether the agreement satisfied the requirements of section 231 of the Fair Work Act, which outlines the criteria for an enterprise agreement to be approved. This included whether the agreement provided for fair and reasonable terms and conditions, and whether it had been genuinely agreed to by the employees. The Commission also needed to consider whether the agreement met the requirements for being a single, integrated agreement, as required by the Act.

The Commission found that the agreement did not meet the criteria for approval as it contained terms that were not genuinely agreed upon by the employees, and it did not ensure that employees were paid at the relevant award rates or conditions. The Commission held that the agreement was not a single, integrated agreement as required by the Fair Work Act. Additionally, the Commission found that the process by which the agreement was negotiated did not meet the requirements for genuine agreement. The Commission concluded that the agreement did not provide for fair and reasonable terms and conditions, and thus, could not be approved under the Fair Work Act.

The Fair Work Commission refused the application for approval of the Freo Group Pty Ltd North West Agreement 2015. The Commission's decision highlights the importance of ensuring that enterprise agreements are genuinely agreed upon by the employees and meet the criteria set out in the Fair Work Act. The decision also reinforces the need for employers to ensure that their employees are paid at the relevant award rates or conditions, and that the agreement is a single, integrated agreement.

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