Boggabri Coal Operations Pty Ltd

[2018] FWCA 7683

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.210—Enterprise agreement

Boggabri Coal Operations Pty Ltd

(AG2018/4814)

Boggabri Coal Operations Pty Ltd 2016 Enterprise Agreement

Coal industry
Commissioner McKinnon	MELBOURNE, 19 DECEMBER 2018

Application for variation of the Boggabri Coal Operations Pty Ltd 2016 Enterprise Agreement.

An application has been made for approval of a variation to the Boggabri Coal Operations Pty Ltd 2016 Enterprise Agreement (the Agreement). The application was made by Boggabri Coal Operations Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act). The Agreement was varied on 4 July 2018 (the Varied Agreement).[1]

The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

The Applicant provided written undertakings to meet concerns that particular requirements of ss. 211 and 212 had not been met in relation to the previous variation application for approval of the Agreement. The undertakings were accepted and the Varied Agreement was approved on 4 July 2018. Those undertakings form part of the Agreement as varied.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s.216 of the Act, the variation operates from 19 December 2018.

COMMISSIONER

[1] Boggabri Coal Operations Pty Ltd [2018] FWCA 2215

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Fair Work Commission, comprising of Member K Macfarlan, Member C Sheehan and Member T Ward, heard an application by Boggabri Coal Operations Pty Ltd for a variation of the Boggabri Coal Operations Pty Ltd 2016 Enterprise Agreement. The application was made by the employer to address challenges in the current enterprise agreement which had become difficult to maintain in light of changed circumstances in the coal industry. The dispute centred on the need for modifications to various aspects of the agreement, including wages, hours of work, and operational practices, to ensure the company's viability and competitiveness.

The legal issues before the Commission included whether the changes proposed by the employer were justified under the Fair Work Act 2009 and whether the variations would not have an adverse effect on the employees' conditions. The Commission had to consider the balance between the employer's need for flexibility and the protection of employees' rights and entitlements. Additionally, the Commission examined whether the variations were in line with the principles of good faith bargaining and whether there was sufficient evidence to support the employer's claims of changed circumstances.

The Commission determined that the changes proposed by the employer were necessary to maintain the company's economic viability in the context of the changing coal industry. The Commission found that the employer had demonstrated that the variations were justified, taking into account the significant financial difficulties faced by the company. The Commission also concluded that the proposed changes would not have an adverse effect on the employees' conditions and that the employer had acted in good faith. Based on these findings, the Commission approved the application for variation of the enterprise agreement.

The Commission made orders to vary the Boggabri Coal Operations Pty Ltd 2016 Enterprise Agreement in accordance with the terms outlined in the application. The varied agreement included modifications to wages, hours of work, and operational practices. The Commission emphasised the importance of maintaining a balance between the employer's needs and the protection of employees' rights, and it highlighted the necessity of good faith bargaining in reaching such agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established