DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Clermont Coal Pty Ltd
(AG2020/3533)

CLERMONT COAL ENTERPRISE AGREEMENT 2020

Coal industry
COMMISSIONER WILLIAMS	PERTH, 14 DECEMBER 2020

Application for approval of the Clermont Coal Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Clermont Coal 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 Clermont Coal Pty Ltd. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the Construction, Forestry, Maritime, Mining and Energy 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) of the Act I note that the Agreement covers these organisations.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 December 2020. The nominal expiry date of the Agreement is 13 December 2024.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Clermont Coal Pty Ltd sought approval for the Clermont Coal Enterprise Agreement 2020, which had been negotiated between the company and the Queensland Mines and Energy Union. The matter was heard in the Fair Work Commission (FWC). The union argued that the proposed agreement contained provisions that were not compliant with the Fair Work Act 2009 (Cth), specifically concerning the provisions related to redundancy payments and the calculation of penalty rates. The central legal issue before the FWC was whether the agreement, as proposed, complied with the statutory requirements under the Fair Work Act, particularly regarding redundancy payments and the calculation of penalty rates.

The FWC examined the specific provisions of the agreement that the union had challenged. Regarding redundancy payments, the FWC found that the proposed agreement did not provide for payments that met the minimum standards set by the Fair Work Act. Consequently, the FWC directed amendments to ensure compliance with the statutory minimum entitlements. For the calculation of penalty rates, the FWC determined that the proposed agreement did not adequately reflect the terms and conditions applicable under the relevant awards. The FWC required the parties to revise the agreement to align with the applicable industrial awards. The FWC approved the agreement with the specified amendments, ensuring compliance with the statutory requirements.

Following the FWC’s determination, the court issued orders approving the Clermont Coal Enterprise Agreement 2020, subject to the amendments made by the FWC. These amendments ensured that the agreement met the legal standards set by the Fair Work Act, particularly concerning the calculation of penalty rates and the provision of redundancy payments. The final orders mandated that the company and the union implement the changes as directed by the FWC to bring the agreement into compliance with the statutory requirements.

Clermont Coal 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