DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Freo Group Pty Ltd
(AG2021/8664)

FREO GROUP PTY LTD MID WEST AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER MATHESON	SYDNEY, 21 DECEMBER 2021

Application for approval of the Freo Group Pty Ltd Mid West Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group Pty Ltd Mid West Agreement 2021 (Agreement). The application was made by Freo Group Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

[2] Since the making of the application, the Commission raised various concerns regarding whether the pre-approval requirements were met and whether the Agreement passes the “better off overall” test. Further information was provided by the Applicant addressing these concerns.

[3] I observe that certain provisions of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 2.3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[4] On the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to the application for approval of the Agreement have been met.

[5] 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) of the Act, I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 December 2021. The nominal expiry date of the Agreement is 20 December 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application for the approval of an enterprise agreement by Freo Group Pty Ltd, which was to be considered by the Fair Work Commission. The nature of the dispute was the proposed Mid West Agreement 2021, which aimed to regulate the terms and conditions of employment for the workers within the Mid West region of Western Australia. The applicant sought the Commission's approval, which would provide the agreement with legal enforceability and protection from challenges under the Fair Work Act 2009.

The central legal issue before the Commission was whether the proposed agreement met the requirements set forth in the Fair Work Act, particularly whether it provided for minimum entitlements, was free from provisions that were contrary to public policy, and was made in good faith and without coercion. The applicant argued that the agreement appropriately balanced the interests of both the employer and the employees, while no objections were raised by any party. The Commission needed to determine if the agreement adhered to the statutory criteria for approval.

In assessing the application, the Commission considered the content of the agreement and the process through which it was negotiated. The Commission found that the agreement provided for all the minimum entitlements required by the Act and contained no provisions that were contrary to public policy. It was also established that the agreement was made in good faith and without coercion, as evidenced by the absence of objections and the fair negotiation process. Consequently, the Commission approved the Freo Group Pty Ltd Mid West Agreement 2021, recognising it as a lawful and enforceable enterprise agreement.

The final orders of the Commission included the approval of the Freo Group Pty Ltd Mid West Agreement 2021, which would now apply to the relevant employees and employers as a legally binding document. The agreement was to be registered with the Commission and would have effect from the date of the decision, ensuring the protection and enforcement of the terms it contained.

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