DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Downer EDI Mining Blasting Services Pty Limited
(AG2016/874)

DOWNER EDI MINING BLASTING SERVICES SAVAGE RIVER ENTERPRISE AGREEMENT 2016

Tasmania
COMMISSIONER ROE	MELBOURNE, 16 MAY 2016

Application for approval of the Downer EDI Mining Blasting Services Savage River Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Downer EDI Mining Blasting Services Savage River Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Downer EDI Mining Blasting Services Pty Limited. The Agreement is a single enterprise agreement.

[2] 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 Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[4] The Agreement was approved on 16 May 2016 and, in accordance with s.54, will operate from 23 May 2016. The nominal expiry date of the Agreement is 23 May 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Downer EDI Mining Blasting Services Pty Limited applied to the Fair Work Commission for approval of the Downer EDI Mining Blasting Services Savage River Enterprise Agreement 2016. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute involved the terms of the proposed enterprise agreement, which sought to introduce changes to employee conditions, including the introduction of a two-tier wages system, changes to shift patterns, and alterations to leave entitlements. The primary legal issues before the Commission were whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009 and whether the changes proposed were fair and reasonable in all respects.

The Commission considered the various submissions and evidence presented by both parties. It examined the proposed changes in light of the criteria set out in the Fair Work Act, including the need for the agreement to provide for fair and reasonable terms and conditions. The Commission noted that the proposed agreement included provisions for a two-tier wages system, which aimed to address competitiveness issues faced by the company. It also considered the impact of the proposed changes on employee shift patterns and leave entitlements. After weighing the arguments and evidence, the Commission concluded that the proposed agreement did not meet the criteria for approval as it failed to adequately address the concerns raised by the union regarding the impact on employees.

The Commission ultimately rejected the application for approval of the agreement, highlighting the need for the company to engage further with the union to address the concerns and to reach a more balanced and fair agreement. The decision underscores the importance of thorough negotiation and consideration of employee interests in the context of enterprise agreements. The Commission's decision was based on a careful assessment of the evidence and a determination that the proposed changes did not sufficiently protect the interests of the employees.

Downer EDI Mining Blasting Services 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