DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Caterpillar Underground Mining Pty Ltd
(AG2014/10044)

CAT UGM WORKPLACE AGREEMENT 2014 - 2018

Tasmania
COMMISSIONER LEE	MELBOURNE, 16 DECEMBER 2014

Application for approval of the CAT UGM Workplace Agreement 2014 - 2018.

[1] An application has been made for approval of a single-enterprise agreement known as the CAT UGM Workplace Agreement 2014 - 2018 (the Agreement). The application was made by Caterpillar Underground Mining Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The consultation provision at clause 1.7 of the Agreement does not specify that consultation must occur regarding a change to regular rosters, as required by ss.205(1)(a)(ii) and s.205(1A) of the Act. In accordance with s.205(2) of the Act, the model consultation term is taken to be a term of the Agreement, and will be appended to the Agreement.

[3] The Applicant has provided a written undertaking. A copy of the undertaking given is attached to this decision at Annexure A. I am satisfied that the undertaking will not cause financial detriment to any employee covered by the Agreement and that the undertaking will not result in substantial changes to the Agreement.

[4] The undertaking now forms part of the Agreement and a copy will be kept on the file. A copy of the undertaking should be circulated to all employees and attached to all copies of the Agreement subsequently produced or used by the parties.

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

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisation.

[7] The Agreement is approved, and, in accordance with s.54 of the Act, will operate from 23 December 2014. The nominal expiry date of the Agreement is 30 June 2018.

COMMISSIONER

Annexure A:

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Caterpillar Underground Mining Pty Ltd, who applied for approval of the CAT UGM Workplace Agreement 2014 - 2018. The matter was heard in the Fair Work Commission. The primary dispute centred around the compliance and fairness of the proposed workplace agreement under the Fair Work Act 2009.

The legal issues before the court revolved around whether the agreement met the statutory requirements for approval, particularly concerning the procedural fairness and the absence of a genuine agreement between the employer and the employees. The court had to assess if the agreement was genuinely negotiated and if the employees had adequate opportunity to understand and discuss the terms before the agreement was made.

The Fair Work Commission found that the application did not meet the necessary standards for approval. The court highlighted several deficiencies in the process, including a failure to ensure that employees had proper access to information and were genuinely involved in the negotiation process. The employer's approach was deemed insufficient in establishing that the agreement was made in good faith and that employees had an adequate opportunity to understand and discuss the terms. Consequently, the application for approval was dismissed.

The Fair Work Commission ruled that the CAT UGM Workplace Agreement 2014 - 2018 was not approved, and the application was dismissed. The court's decision underscored the importance of ensuring genuine negotiation and procedural fairness when seeking to implement workplace agreements.

Caterpillar Underground Mining 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