Fortescue Metals Group Ltd Summary

[2013] FWCA 3296

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Fortescue Metals Group Ltd
(AG2013/6391)

FORTESCUE TEAM MEMBER AGREEMENT 2013

Mining industry
SENIOR DEPUTY PRESIDENT HARRISON	SYDNEY, 24 MAY 2013

Application for approval of the Fortescue Team Member Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Fortescue Team Member Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). 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.

[3] The Construction, Forestry, Mining and Energy Union, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) and the Australian Workers' Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2) I note that the Agreement covers the organisations.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 31 May 2013. The nominal expiry date of the Agreement is 23 May 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Fortescue Metals Group Ltd recently appeared before the Fair Work Commission in an application for approval of the Fortescue Team Member Agreement 2013. The company sought to have the agreement recognised as a lawful and binding instrument under the Fair Work Act 2009. The application was made in response to the company’s need to establish a standardised employment agreement that would apply to a significant portion of its workforce, encompassing various roles and locations. This move was aimed at simplifying the employment framework and ensuring compliance with contemporary employment standards.

The legal issues central to the application revolved around the compliance of the proposed agreement with the Fair Work Act 2009, specifically the requirement for the agreement to be a ‘registered agreement’ as outlined in the legislation. The Commission had to examine whether the agreement met the criteria for registration, which included provisions on minimum wages, penalty rates, leave entitlements, and other essential employment conditions. Additionally, the Commission needed to ensure that the agreement did not unfairly disadvantage employees and was made in good faith, without any coercion.

In delivering its decision, the Commission meticulously reviewed the proposed agreement against the statutory benchmarks set by the Fair Work Act 2009. The analysis included a thorough assessment of the agreement's provisions to confirm they aligned with the legislative standards and did not undermine the rights of employees. The Commission also considered submissions from both Fortescue Metals Group Ltd and the relevant employee representatives. Ultimately, the Commission found that the Fortescue Team Member Agreement 2013 was compliant with the Act and approved it as a registered agreement. This decision facilitated the company's operational objectives while safeguarding the rights and conditions of its workforce.

Fortescue Metals Group Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established