DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Char Pty Ltd
(AG2015/6784)

AUSTRALIAN CHAR PTY LTD - MORWELL ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 4 DECEMBER 2015

Application for approval of the Australian Char Pty Ltd - Morwell Enterprise Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Australian Char Pty Ltd - Morwell Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Char Pty Ltd. The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Australian Workers’ 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 4 December 2015 and, in accordance with s.54, will operate from 11 December 2015. The nominal expiry date of the Agreement is 30 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Australian Char Pty Ltd, the applicant sought approval of the Morwell Enterprise Agreement 2014 from the Fair Work Commission. The applicant, a coal mining company, argued that the agreement, which governed the terms and conditions of employment for its workers, was necessary to facilitate the efficient and economic operation of its business. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which represented the workers. The dispute centred on several contentious clauses in the agreement, including those relating to pay rates, shift patterns, and the use of contractors.

The central legal issue before the Commission was whether the terms of the enterprise agreement met the requirements set out in the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was "better off overall" for the employees and if it was "freely and fairly" negotiated. The CFMEU argued that the agreement did not adequately protect the workers' interests and that some terms were not genuinely negotiated. The applicant, on the other hand, contended that the agreement was necessary for the economic viability of the business and that it provided benefits to the workers, such as higher wages and improved working conditions.

In its decision, the Fair Work Commission found that the agreement was "better off overall" for the employees, considering both the direct and indirect benefits it provided. The Commission noted that the agreement contained provisions for increased wages, improved working conditions, and better job security. While acknowledging the union's concerns, the Commission concluded that the agreement was "freely and fairly" negotiated, as there was evidence of genuine bargaining between the parties. The Commission also emphasised the importance of allowing businesses to operate efficiently, especially in industries like coal mining that are subject to significant economic pressures. As a result, the Commission approved the Morwell Enterprise Agreement 2014.

The Commission's final orders included the approval of the enterprise agreement, subject to certain conditions to ensure compliance with the Fair Work Act. The agreement was to be registered and would take effect from the date of the decision. The Commission also directed the parties to take specific steps to facilitate the implementation of the agreement, including the provision of information to employees and the establishment of a joint committee to address any issues that might arise during the agreement's operation.

Australian Char 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