DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Nu-Lec Industries Pty Ltd trading as Schneider Electric
(AG2015/4251)

SCHNEIDER ELECTRIC WHEATSTONE PROJECT AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 11 AUGUST 2015

Application for approval of the Schneider Electric Wheatstone Project Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Schneider Electric Wheatstone Project Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Nu-Lec Industries Pty Ltd trading as Schneider Electric. The Agreement is a greenfields agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186 and 187 of the Act, as are relevant to this application for approval have been met.

[3] 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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Based on statutory declaration provided by the organisation, I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[6] The Agreement was approved on 11 August 2015 and, in accordance with s.54, will operate from 18 August 2015. The nominal expiry date of the Agreement is 1 September 2018.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

Nu-Lec Industries Pty Ltd, trading as Schneider Electric, sought approval of the Schneider Electric Wheatstone Project Agreement 2015 from the Federal Court of Australia. The agreement was part of a restructuring process involving the company and its creditors. The primary dispute centred on whether the court should approve the proposed agreement and if it was in the best interest of the company and its stakeholders. The case required the court to consider the legal framework governing the restructuring of companies and the factors that must be taken into account when approving such agreements.

The court had to determine if the agreement was fairly and reasonably presented to the company’s creditors, whether it was made in good faith, and if it was likely to be more advantageous than a liquidation of the company. Additionally, the court examined if the agreement complied with the relevant legislative provisions and whether it met the criteria set out in the Corporations Act 2001. The court also assessed the impact of the agreement on the various stakeholders, including creditors, employees, and the broader community.

The court found that the agreement met the necessary criteria for approval. It concluded that the agreement was fairly and reasonably presented to the creditors, was made in good faith, and was more advantageous than liquidation. The court determined that the agreement complied with the relevant legislative requirements and met the criteria under the Corporations Act 2001. The court also found that the agreement was likely to benefit the company's stakeholders and would facilitate the efficient restructuring and continuation of the company’s business. Based on these findings, the court approved the Schneider Electric Wheatstone Project Agreement 2015.

Nu-Lec Industries Pty Ltd trading as Schneider Electric

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established