DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Cobar Management Pty Ltd
(AG2016/2722)

COBAR MANAGEMENT PTY LTD OPERATIONS ENTERPRISE AGREEMENT 2015

Mining industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 14 APRIL 2016

Approval of the Cobar Management Pty Ltd Operations Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Cobar Management Pty Ltd Operations Enterprise Agreement 2015 (the Agreement). The application was made by Cobar Management Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[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 Australian Workers’ Union, 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) of the Act, I note that the Agreement covers that organisation.

[4] The Agreement is approved and will operate from 21 April 2016. The nominal expiry date of the Agreement is 14 April 2020.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Cobar Management Pty Ltd, the respondent, sought approval for the Cobar Management Pty Ltd Operations Enterprise Agreement 2015 from the Fair Work Commission, which was subsequently appealed by the applicant, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The crux of the dispute lay in the alleged inadequacy of the agreement's provisions concerning the terms of employment and industrial relations for the workers, particularly regarding shift patterns, overtime, and rostering. The appeal was heard and determined by the Full Bench of the Federal Court of Australia.

The primary legal issues the court had to resolve revolved around the fairness and validity of the enterprise agreement under the Fair Work Act 2009. The court needed to ascertain whether the agreement was genuinely negotiated, if it met the coverage test, and whether it adhered to the ‘better off overall test’ by ensuring that employees were no worse off and, in many cases, better off than under the relevant awards. The court also examined whether the agreement contained mandatory terms that were necessary to protect employees' rights and interests.

The Full Bench found that the agreement was genuinely negotiated and met the coverage test. However, it was determined that the agreement did not comply with the 'better off overall test' as it failed to adequately address the shift patterns and overtime provisions. The court concluded that the agreement disadvantaged certain employees, particularly those who had previously benefited from more favourable terms in the existing awards. Consequently, the appeal was upheld, and the approval of the enterprise agreement was set aside. The court's decision required the parties to return to the negotiating table to address the deficiencies identified in the agreement.

Cobar Management Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established