DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Drillco WA Pty Ltd
(AG2015/1148)

DRILLCO WA PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 18 MAY 2015

Application for approval of the Drillco WA Pty Ltd Roy Hill AWU Greenfields Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Drillco WA Pty Ltd Roy Hill AWU Greenfields Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Drillco WA Pty Ltd. The Agreement is a greenfields agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186 and 187 of the Act, as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Based on statutory declaration provided by the organisation, I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[5] The Agreement was approved on 18 May 2015 and, in accordance with s.54, will operate from 25 May 2015. The nominal expiry date of the Agreement is 18 November 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by Drillco WA Pty Ltd for the approval of the Roy Hill AWU Greenfields Agreement 2015. The dispute arose from the negotiation of a workplace agreement between the applicant company and the Australian Workers’ Union, concerning the terms and conditions of employment for workers involved in the Roy Hill mining project. The Commission was tasked with determining whether the agreement met the statutory criteria for approval under the Fair Work Act 2009.

The central legal issues before the Commission were whether the agreement was genuinely negotiated and whether it met the requirements of the "better off overall test" (BOOT). The Commission had to consider if the agreement provided employees with conditions that were no worse than, and in some respects better than, those provided under the applicable award or enterprise agreement. Additionally, the Commission examined if the agreement was consistent with the objects of the Fair Work Act, particularly the promotion of cooperative relationships between employers and employees.

The Fair Work Commission determined that the agreement was genuinely negotiated, as it reflected a balanced outcome achieved through genuine bargaining between the parties. The Commission also found that the agreement satisfied the BOOT, as it provided employees with a range of benefits that were better than those provided under the applicable award, including higher wages and additional entitlements. The Commission concluded that the agreement promoted cooperative workplace relations and aligned with the objectives of the Fair Work Act.

The Commission approved the Roy Hill AWU Greenfields Agreement 2015, setting a precedent for similar agreements in the mining industry. The approval was contingent upon compliance with specific conditions, including the maintenance of records and reporting requirements. The decision underscored the importance of genuine negotiation and the promotion of cooperative workplace relationships in the context of enterprise agreements.

Drillco WA 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