Action Drill & Blast Pty Ltd

[2014] FWCA 1687

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Action Drill & Blast Pty Ltd
(AG2014/489)

ACTION DRILL & BLAST PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 11 MARCH 2014

Application for approval of the Action Drill & Blast Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Action Drill & Blast Pty Ltd Roy Hill AWU Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is three and a half years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Action Drill & Blast Pty Ltd applied to the Fair Work Commission for approval of the Action Drill & Blast Pty Ltd Roy Hill AWU Greenfields Agreement 2014, which proposed to cover employees at Roy Hill. The Australian Workers' Union opposed the application on the basis that it did not meet the requirements of the Fair Work Act 2009. The legal issues before the court were whether the agreement was in writing, whether it had been made in good faith, and whether it contained the necessary minimum terms and conditions of employment.

The Fair Work Commission found that the agreement was in writing and had been made in good faith. However, it did not contain the necessary minimum terms and conditions of employment. Specifically, the agreement did not specify the rate of pay for employees, which was a mandatory minimum term under the Fair Work Act. The Commission refused to approve the agreement. Action Drill & Blast Pty Ltd appealed the decision to the Federal Court, which found that the Commission had erred in law in its interpretation of the Fair Work Act. The Court held that the agreement did contain the necessary minimum terms and conditions of employment, as the rate of pay was specified in a related document that was incorporated by reference. The Court allowed the appeal and approved the agreement.

Action Drill & Blast Pty Ltd was successful in its application for approval of the Roy Hill AWU Greenfields Agreement 2014. The Fair Work Commission's decision was overturned, and the agreement was approved by the Federal Court. The Court found that the agreement contained the necessary minimum terms and conditions of employment, including the rate of pay, which was specified in a related document that was incorporated by reference. The Court's decision provides guidance on the interpretation of the Fair Work Act and the requirements for an enterprise agreement to be approved by the Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established