Progression through level 1 to 2 will be by way of 12 months of service and the outcomes of a performance review.

Progression through level 2 to level 3 by way of application by an employee who seeks to move to level 3.

Pay at current level 3 plus 1st year uplift. Subject to a successful annual performance review will move to level 2 after 12 months. With company discretion to start a new hire at a higher level.

Pay at current level 4 plus 1st year uplift. Employees can apply to move to level 3.

Criteria for assessing suitability for promotion to Level 3 on application:

• Exceptional client relationships.
• Demonstrated advanced skills in rigging or crane operation (ie Luffing Fly, Dual Lifts).
• Specialised training (i.e. High Risk Advanced Rigging Licence, Qualified Trainer and Assessor, S26, Registered HSE).
• Drives safety culture.
• Performance reviews reflecting outstanding performance exceeding expectations.

Progression from level 2 to 3 will be subject to commercial operational requirements and provision of reasons for refusal for unsuccessful applications. The General Manager of Operations WA or HR Manager will review the application before application outcome is communicated to the applicant. This is to ensure that a second level of review of an application is introduced as part of the process. From there, an appeal of the outcome can be made and it will be considered by a fresh Freo Group decision maker.

Employees will translate into level 1, 2 or 3 based on their current classification as follows.

• Current level 3 will become proposed level 1.
• Current level 4 will become proposed level 2.
• Current level 5 will become proposed level 3.

For employees who are currently at level 1 or 2 under the 2020 Agreement, they will move to the new level 1 on commencement of the new agreement.

Freo Groups wage proposal will be applied to the new classification structure.

This approach installs a simple and transparent way of applying a new classification system and upholding the previously proposed wage increases without resulting in employees going backward in their wage outcomes.

The objective of this process is to ensure that no employee goes backwards in their classification or rate of pay and to open up the potential for escalations under a robust, transparent, objective and regular performance review process.

• Freo Group will commit to yearly performance reviews which will include including written reasons for review outcomes.
• Freo Group will adopt and fair, objective and timely process for performance reviews.
• There will be an appeal mechanism to the above line manager which can be exercised when an employee does not agree to the outcomes of a performance review.

[9] I understand that the parties will now commit to converting this proposal into a Proposed Agreement for employees to consider by way of an exposure draft which will then put to an access period and ballot.

[10] Absent a need for the Commission to assist the parties further in the drafting exercise, it is anticipated by the parties that the next steps will be across the following timetable:

• Drafting of the Proposed Agreement (including via a drafting committee of Freo Group, the CFMEU and employee representatives) to conclude by 27 February 2026

• Employees to receive an exposure draft of the Proposed Agreement during the week commencing 2 March 2026

• An access period and ballot to be conducted the week commencing 9 March 2026

[11] Whilst the parties still have some work to do before they finalise a replacement to the Agreement, it is important to recognise the time and effort put by all parties to the process to date and the achievement reached in terms of the innovative and beneficial proposal which is to be committed to drafting and a ballot.

[13] With this in mind, I observe that there is a real opportunity for the parties to conclude negotiations and for the workforce to receive the benefits of a hard-fought negotiation and

industrial campaign that has been on foot for over 12 months.

[14] As a measure of good faith and in reflection of my comments above, it is my observation the parties would benefit from undertaking the steps set out at paragraph [10] under a framework where no protected industrial action is taken. I make this observation in the knowledge that such a step will allow the parties to conclude drafting of the Proposed Agreement and hold an access period and ballot without the distractions protected industrial action can pose. This will also allow work to continue without any lost time or lost wages due to protected industrial action.

[15] I strongly recommend that the parties close out the steps set out at paragraph [10] to deliver a Proposed Agreement which is able to be voted up so that employees can receive the benefits of a significant pay increase and the improved terms and conditions which are the product of negotiations to date.

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