DECISION

Fair Work Act 2009
s.185—Enterprise agreement

RL Industries Pty Ltd T/A RL Industries
(AG2020/611)

RL INDUSTRIES GREENFIELDS AGREEMENT

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 19 MARCH 2020

Application for approval of the RL Industries Greenfields Agreement.

[1] An application has been made for approval of a greenfields agreement known as the RL Industries Greenfields Agreement (the Agreement). The application was made by RL Industries Pty Ltd T/A RL Industries pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. 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. In accordance with s.187(5)(a) of the Act, I am satisfied that The Australian Workers’ Union 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.

[3] I note that Clause 7.11 (f) is inconsistent with the National Employment Standards as it indicates that a majority of affected employees and the employer can agree to substitute a nominated public holiday for another day. Given the National Employment Standards precedence clause at clause 2.5 (b) of the agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian Workers’ Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 March 2020. The nominal expiry date of the Agreement is 18 March 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court of Australia, the case of RL Industries Pty Ltd trading as RL Industries involved an application for the approval of a Deed of Company Arrangement, referred to as the RL Industries Greenfields Agreement. The dispute centred on whether the proposed arrangement, which included the sale of the company's assets to Greenfields Pty Ltd, was in the best interests of the company's creditors and shareholders. The application was brought by the company's voluntary administrators, who sought to have the arrangement approved under the Corporations Act 2001.

The central legal issues before the court were whether the proposed arrangement met the statutory requirements for approval and whether it was, in fact, in the best interests of the company's creditors. This required the court to consider the terms of the arrangement, the financial viability of the company, and the potential benefits and detriments to the creditors and shareholders if the arrangement were approved. The court also had to assess whether the process leading up to the agreement was fair and transparent.

The court concluded that the proposed arrangement satisfied the statutory criteria for approval, including that it was likely to achieve better results for the creditors than a winding up of the company. The court found that the arrangement provided a realistic opportunity for the company to repay its debts and that it was in the best interests of the creditors. The administrators had conducted their duties with due care and had not favoured any particular class of creditors. The court approved the arrangement, allowing the sale of the company's assets to proceed as proposed. The decision was based on a detailed analysis of the financial documents and evidence provided, which demonstrated the benefits of the arrangement over alternative options. The final orders of the court confirmed the approval of the RL Industries Greenfields Agreement, paving the way for the transaction to be completed.

RL Industries Pty Ltd T/A RL Industries

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established