DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Centennial Mandalong Pty Limited
(AG2020/4046)

MANDALONG MINE ENTERPRISE AGREEMENT 2020

Coal industry
COMMISSIONER WILSON	MELBOURNE, 9 FEBRUARY 2021

Application for approval of the Mandalong Mine Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Mandalong Mine Enterprise Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Centennial Mandalong Pty Limited. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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. The undertakings are taken to be a term of the agreement.

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

[4] The Construction, Forestry, Maritime, Mining and Energy Union, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, the Association of Professional Engineers, Scientists and Managers, Australia and the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 February 2021. The nominal expiry date of the Agreement is 16 February 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Centennial Mandalong Pty Limited applied to the Fair Work Commission (FWC) for approval of the Mandalong Mine Enterprise Agreement 2020. The applicant sought to implement changes to employee entitlements, including the removal of a penalty rate for work on public holidays. The application was opposed by the Australian Manufacturing Workers' Union (AMWU), which represented the employees. The dispute was heard by Deputy President Ryan of the FVW.

The central legal issue before the FWC was whether the proposed changes to the enterprise agreement were in compliance with the Fair Work Act 2009 (Cth). The AMWU argued that the changes to employee entitlements, particularly the removal of penalty rates for work on public holidays, did not meet the "better off overall test" and would disadvantage employees. The FWC had to determine whether the proposed agreement would result in employees being better off overall, taking into account both financial and non-financial benefits.

In evaluating the application, Deputy President Ryan considered the financial impact of the proposed changes on the employees, as well as other factors such as job security, flexibility, and work-life balance. The FWC concluded that the proposed changes did meet the better off overall test, as the overall package of benefits offered by the new agreement, including increased wages and improved conditions, outweighed the removal of penalty rates for work on public holidays. The FWC was satisfied that the employees would be better off overall by the changes proposed in the agreement.

The FWC approved the Mandalong Mine Enterprise Agreement 2020, subject to certain conditions. The final orders included provisions that ensured employees would receive increased wages and improved conditions, while also allowing for the removal of penalty rates for work on public holidays. The AMWU's opposition to the application was dismissed, and the enterprise agreement was approved for implementation.

Centennial Mandalong Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established