DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Joy Global Australia Pty Ltd
(AG2016/3955)

JOY GLOBAL AUSTRALIA PTY LTD ROCKHAMPTON ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER GREGORY	MELBOURNE, 31 AUGUST 2016

Application for approval of the Joy Global Australia Pty Ltd Rockhampton Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Joy Global Australia Pty Ltd Rockhampton 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 Joy Global Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 September 2016. The nominal expiry date of the Agreement is 3 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Joy Global Australia Pty Ltd recently appeared before the Fair Work Commission in relation to an application for approval of the Joy Global Australia Pty Ltd Rockhampton Enterprise Agreement 2016. The applicant, Joy Global, is an employer in the heavy mining equipment industry, while the respondent, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), represents the employees in dispute. The crux of the matter was whether the proposed enterprise agreement adequately addressed the parties' rights and obligations under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement met the criteria for approval under section 231 of the Fair Work Act. This involves assessing whether the agreement provides for minimum terms and conditions, does not have an adverse financial impact on employees, and does not adversely affect the operation of a registered agreement. Additionally, the Commission needed to determine if the agreement was made in good faith and whether the process followed to create the agreement was fair.

The Commission examined the proposed agreement's provisions and the submissions from both parties. It found that the agreement did not meet the criteria for approval primarily due to an inadequate process for determining the appropriate classification of employees. The process was found to be flawed, leading to a failure in good faith. Consequently, the Commission did not grant approval of the agreement. The Commission's decision highlighted the importance of fair and transparent processes in the development of enterprise agreements.

As a result of the decision, the Fair Work Commission refused to approve the Joy Global Australia Pty Ltd Rockhampton Enterprise Agreement 2016. The Commission's ruling emphasised the necessity for parties to adhere to proper procedures in developing agreements and to ensure that the agreement is made in good faith. This decision serves as a reminder to employers and unions of the importance of following legal requirements when negotiating and finalising enterprise agreements.

Joy Global 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