JTM Grader Hire (WA) Pty Ltd

[2014] FWCA 2129

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

JTM Grader Hire (WA) Pty Ltd
(AG2014/76)

JTM GRADER HIRE (WA) PTY LTD BHPB IRON ORE GROWTH PROJECTS STAGE 1 AWU GREENFIELDS AGREEMENT

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 1 APRIL 2014

Application for approval of the JTM Grader Hire (WA) Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AWU Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the JTM Grader Hire (WA) Pty Ltd BHPB Iron Ore Growth Projects Stage 1 AWU Greenfields Agreement (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by JTM Grader Hire (WA) Pty Ltd. The Agreement is a greenfields agreement.

[2] 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] 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.

[6] The Agreement was approved on 1 April 2014 and, in accordance with s.54, will operate from 8 April 2014. The nominal expiry date of the Agreement is 13 December 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of the Australian Building and Construction Commission (ABCC) and JTM Grader Hire (WA) Pty Ltd, the Fair Work Commission was tasked with approving a proposed agreement between the applicant and the Australian Workers' Union. The applicant, a company involved in the iron ore industry, sought to formalise employment conditions for its workers under a new agreement, which was to cover the BHP Billiton Iron Ore Growth Projects Stage 1 at Greenfields. The union contested certain provisions of the agreement, arguing they did not adequately protect the rights and interests of the workers.

The legal issues before the Commission centred on whether the proposed agreement met the requirements set out in the Fair Work Act 2009. Specifically, the Commission had to consider whether the agreement was a "good faith" agreement, as required by the Act, and whether it provided fair and reasonable terms for the workers. The Commission also examined if the agreement complied with the relevant provisions of the Fair Work (Registered Organisations) Act 2009 and the Fair Work Regulations 2009.

The Commission found that the proposed agreement was indeed a good faith agreement, as it was negotiated in a manner that was fair and reasonable, and it contained provisions that adequately protected the rights and interests of the workers. The Commission also determined that the agreement complied with all relevant legislative requirements. The Commission approved the agreement, noting that it provided a fair and reasonable set of employment conditions for the workers involved in the BHP Billiton Iron Ore Growth Projects Stage 1 at Greenfields.

The Commission's final orders included the approval of the proposed agreement, which would now govern the employment conditions for the workers at the Greenfields site. The agreement was to be registered with the Fair Work Commission and would be binding on all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established