DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Action Drill & Blast Pty Ltd
(AG2018/7222)

ACTION DRILL & BLAST PTY LTD BLACK COAL ENTERPRISE AGREEMENT 2018

Mining industry
COMMISSIONER LEE	MELBOURNE, 21 MARCH 2019

Application for approval of the Action Drill & Blast Pty Ltd Black Coal Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Action Drill & Blast Pty Ltd Black Coal Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Action Drill & Blast Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 March 2019. The nominal expiry date of the Agreement is 20 March 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Action Drill & Blast Pty Ltd, applied for the approval of the Black Coal Enterprise Agreement 2018 under the Fair Work Act 2009. The respondents, including various unions, objected to the application on the grounds that the agreement did not meet the "better off overall test" required by the legislation. The application was heard in the Federal Circuit Court of Australia.

The court was required to determine whether the agreement was fair and whether it met the statutory criteria for approval, particularly the "better off overall test." This test requires that the employees covered by the agreement be no worse off financially and have at least one improved term or condition of employment. The court needed to consider the overall balance of the agreement, including the financial and non-financial terms, to ascertain whether it met these requirements.

The court examined the financial impact of the proposed agreement on the employees, taking into account the overall benefits and detriments. It found that the agreement provided several improvements to the employees, including increased wages and better working conditions. The court concluded that, overall, the employees would be better off with the new agreement despite some minor financial disadvantages in specific circumstances. Therefore, the agreement met the "better off overall test" and was approved under the Fair Work Act 2009.

The court approved the Action Drill & Blast Pty Ltd Black Coal Enterprise Agreement 2018, finding it to be fair and meeting the statutory requirements of the Fair Work Act 2009. The agreement was thus authorised to take effect.

Action Drill & Blast 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