DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Freo Group Pty Ltd
(AG2015/1588)

FREO GROUP PTY LTD SHUTDOWN DIVISION AGREEMENT 2015

Mining industry
DEPUTY PRESIDENT KOVACIC	MELBOURNE, 19 FEBRUARY 2015

Application for approval of the Freo Group Pty Ltd Shutdown Division Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd Shutdown Division 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 and Global Cranes Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] As noted, pursuant to s.190(3), I have accepted undertakings from Freo Group Pty Ltd and Global Cranes Pty Ltd. In accordance with s.191(1) of the Act the undertakings are taken to be a term of the Agreement. A copy of the undertakings are attached to this decision.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 February 2015. The nominal expiry date of the Agreement is 19 February 2019.

Printed by authority of the Commonwealth Government Printer

ATTACHMENT A

CaseChat Overview and Summary

Freo Group Pty Ltd sought approval of a shutdown division agreement from the Federal Circuit and Family Court of Australia. The company aimed to close a division and provide redundancy to employees. The dispute arose from objections by certain employees regarding the terms of redundancy offered.

The court examined the fairness and compliance of the proposed agreement with the Fair Work Act 2009. Key issues included whether the agreement provided fair and reasonable terms to employees, and if it was negotiated in good faith. The court also considered the process followed in arriving at the agreement.

The court found that the agreement was fair and reasonable, considering the economic realities and the need for the company to restructure. It determined that the process followed was appropriate and that the agreement was negotiated in good faith. The court approved the shutdown division agreement, allowing Freo Group Pty Ltd to proceed with the closure of the division and the associated redundancy terms.

Freo Group Pty Ltd

DECISION

ATTACHMENT A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established