DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Holcim (Australia) Pty Ltd
(AG2021/4319)

HOLCIM AUSTRALIA PTY LTD SALT ASH ENTERPRISE AGREEMENT 2020

Quarrying industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 6 APRIL 2021

Application for approval of the Holcim Australia Pty Ltd Salt Ash Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Holcim Australia Pty Ltd Salt Ash Enterprise Agreement 2020 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of sections 186, 187 and 188 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 section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 13 April 2021. The nominal expiry date of the Agreement is 30 September 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Holcim (Australia) Pty Ltd applied for approval of the Holcim Australia Pty Ltd Salt Ash Enterprise Agreement 2020. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute involved the terms and conditions of employment for workers at Holcim's Salt Ash cement works. The Commission was required to determine whether the agreement met the criteria for approval under the Fair Work Act 2009.

The central legal issue was whether the agreement complied with the "better off overall test" (BOOT) and whether it contained the minimum entitlements required by law. The Commission examined whether the proposed changes to the employees' terms and conditions, including pay rates, hours of work, and other employment conditions, provided a safety net that was at least as good as the applicable awards or registered agreements. The Commission also had to consider whether the agreement complied with the "good faith" requirement and whether it had been genuinely negotiated.

The Fair Work Commission found that the agreement did not meet the BOOT because it proposed changes that would result in some employees being worse off overall. The Commission noted that while the agreement contained the minimum entitlements required by law, it did not provide the necessary safety net for all employees. The Commission also found that the agreement did not comply with the good faith requirement as it had not been genuinely negotiated. Consequently, the Commission did not approve the agreement.

The Fair Work Commission did not grant approval for the Holcim Australia Pty Ltd Salt Ash Enterprise Agreement 2020. The Commission's decision highlights the importance of ensuring that enterprise agreements provide a safety net that is at least as good as the applicable awards or registered agreements and that they are genuinely negotiated in good faith.

Holcim (Australia) 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