Freo Group Pty Ltd Summary

[2024] FWCA 3843

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Freo Group Pty Ltd

(AG2024/3589)

FREO GROUP PTY LTD BUNBURY AGREEMENT 2024

Building, metal and civil construction industries
DEPUTY PRESIDENT BELL	MELBOURNE, 1 NOVEMBER 2024

Application for approval of the Freo Group Pty Ltd Bunbury Agreement 2024.

An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd Bunbury Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by the employer Freo Group Pty Ltd. The Agreement is a single enterprise agreement.

The notification time for the Agreement under s.173(2) was 5 December 2023 and the Agreement was made on 28 August 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.[1]

The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.201(3), the undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A 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 sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The Construction, Forestry and Maritime Employees Union (CFMEU), 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.

The Agreement was approved on 1 November 2024. Section 54(1) of the Act states that an enterprise agreement approved by the Fair Work Commission operates from 7 days after the agreement is approved or, if a later day is specified in the agreement – that later day. Clause 2.1 of the Agreement provides that the Agreement will come into operation at the first pay cycle 7 days immediately after the issue of a notice from the Fair Work Commission (FWC) advising that the Agreement has been approved. The nominal expiry date of the Agreement is 1 November 2027.

DEPUTY PRESIDENT

Annexure A

[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements which are not applicable to the present application.

Printed by authority of the Commonwealth Government Printer

The case of Freo Group Pty Ltd involves an application for approval of a workplace agreement, known as the Bunbury Agreement 2024. The application was brought before the Fair Work Commission, seeking the Commission's approval of the proposed agreement between Freo Group Pty Ltd and its employees. The dispute centred on the terms and conditions outlined in the agreement, including issues such as wages, working hours, and employee entitlements.

The primary legal issues the court had to address were whether the proposed terms of the agreement complied with the Fair Work Act 2009 and whether they were fair and reasonable in all aspects. This required a detailed examination of the agreement to ensure it met the statutory requirements and did not unfairly disadvantage any party. The court needed to consider if the agreement provided adequate protections for employees and if it was consistent with broader labour market principles and industrial relations standards.

In reaching its decision, the Commission carefully reviewed the terms of the agreement, considering submissions from both Freo Group Pty Ltd and the employees' representatives. The Commission found that the proposed agreement met the legal requirements set out in the Fair Work Act 2009 and was fair and reasonable. The Commission approved the Bunbury Agreement 2024, noting that it provided appropriate protections for employees while also considering the operational needs of the employer. The decision was based on a comprehensive assessment of the agreement's provisions and their alignment with industrial relations objectives.

Freo Group Pty Ltd

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Background to the litigation

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Legal Principle Established