Jakk Contracting Pty Ltd

[2014] FWCA 923

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jakk Contracting Pty Ltd
(AG2014/138)

JAKK CONTRACTING PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 5 FEBRUARY 2014

Application for approval of the Jakk Contracting Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Jakk Contracting Pty Ltd Roy Hill AWU Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is three and a half years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Jakk Contracting Pty Ltd applied for approval of the Roy Hill AWU Greenfields Agreement 2014, which was to govern the employment conditions of its workers at the Roy Hill iron ore mine in Western Australia. The Australian Workers' Union (AWU) had negotiated the agreement on behalf of the workers. The application was opposed by the AWU, who argued that the agreement did not adequately protect the rights and interests of the workers.

The central legal issues before the Commission were whether the agreement met the criteria for approval under the Fair Work Act 2009, including whether it provided for fair and reasonable terms and conditions of employment, and whether it was made in good faith. The AWU contended that the agreement did not adequately protect workers' rights and did not meet the good faith requirement. Jakk Contracting Pty Ltd argued that the agreement was fair and reasonable and had been negotiated in good faith.

The Commission considered the provisions of the agreement and the arguments of both parties. It found that while the agreement contained some provisions that were beneficial to the workers, there were significant deficiencies in relation to pay rates, leave entitlements, and other terms and conditions of employment. The Commission also found that the agreement had not been made in good faith, as Jakk Contracting Pty Ltd had not genuinely negotiated with the AWU and had imposed terms and conditions on the workers without adequate consultation. As a result, the Commission did not approve the agreement.

The Commission's decision provides guidance on the requirements for an enterprise agreement to be approved under the Fair Work Act, and highlights the importance of genuine negotiation and adequate protection of workers' rights in the agreement-making process.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established