Anglo Coal (Drayton Management) Pty Ltd v Construction, Forestry, Mining and Energy Union

Anglo Coal (Drayton Management) Pty Ltd (the employer) and the Construction, Forestry, Mining and Energy Union (the union) were parties to proceedings in the Federal Court of Australia concerning the interpretation and application of a certified agreement. The dispute arose from the employer's decision to cease operations at its Drayton mine and the union's subsequent claim that this decision was unlawful and constituted a breach of the agreement. The union sought orders for the employer to resume operations and to pay damages for alleged breaches.

The primary legal issue before the Full Federal Court was whether the employer's decision to cease operations at the Drayton mine was a "prohibited action" under clause 10.2 of the certified agreement. Clause 10.2 stipulated that the employer must not take certain actions, including "ceasing to carry on the whole or a substantial part of its business," unless specific conditions were met. The court was required to determine if the cessation of operations at the Drayton mine constituted ceasing to carry on the whole or a substantial part of the employer's business within the meaning of this clause, and if so, whether the employer had complied with the stipulated conditions.

Bell and Keane JJ held that the cessation of operations at the Drayton mine did not constitute ceasing to carry on the whole or a substantial part of the employer's business. Their Honours reasoned that the employer continued to operate other mines and engage in mining activities, meaning that the business as a whole was not ceased. The court applied the principle that "substantial part" refers to a part that is significant in the context of the entire business, and the closure of one mine, while significant for that mine, did not render the employer's overall business non-operational. Consequently, the employer's actions did not fall within the prohibition in clause 10.2 of the certified agreement.