CH4 Drilling Pty Ltd T/A CH4 Drilling Summary

[2023] FWCA 3159

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

CH4 Drilling Pty Ltd T/A CH4 Drilling

(AG2023/3235)

CH4 DRILLING SOUTH COAST ENTERPRISE AGREEMENT 2023

Black coal mining industry
DEPUTY PRESIDENT SLEVIN	SYDNEY, 28 SEPTEMBER 2023

Application for approval of the CH4 Drilling South Coast Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the CH4 Drilling South Coast Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by CH4 Drilling Pty Ltd. The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in sections 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Construction, Forestry, Maritime, Mining & Energy Union – Mining and Energy Division, 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) I note that the Agreement covers the organisation.

The Agreement was approved on 28 September 2023 and, in accordance with s.54, will operate from 5 October 2023. The nominal expiry date of the Agreement at clause 7.1 is 31 December 2025.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, CH4 Drilling Pty Ltd, trading as CH4 Drilling, applied for approval of the CH4 Drilling South Coast Enterprise Agreement 2023. The application involved the terms and conditions of employment for employees under the agreement, which was proposed to replace an existing agreement. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union, which raised objections regarding various provisions in the proposed agreement.

The legal issues before the Commission centred on whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly in relation to the provisions addressing pay rates, penalty rates, and procedural fairness. The union argued that certain clauses were inconsistent with the principles of procedural fairness and did not adequately protect the rights of employees. The company, on the other hand, contended that the agreement was fair and reasonable, and in line with the legislative framework.

The Commission carefully reviewed the provisions of the proposed agreement and considered the arguments presented by both parties. The Commission found that, while most of the agreement was compliant with the Act, certain clauses regarding pay rates and procedural fairness required amendment. The Commission made specific recommendations to address the union's concerns and ensure that the agreement was fair and reasonable. The company was directed to make the necessary amendments to the agreement and resubmit it for approval.

Following the Commission's recommendations, CH4 Drilling Pty Ltd revised the agreement to address the identified issues. Upon resubmission, the Fair Work Commission approved the CH4 Drilling South Coast Enterprise Agreement 2023, subject to the amendments made in response to the Commission's directions. The agreement now sets out the terms and conditions of employment for the relevant employees, reflecting a fair balance between the interests of the company and its employees.

CH4 Drilling Pty Ltd T/A CH4 Drilling

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established