DECISION

Fair Work Act 2009
s.185—Enterprise agreement

LD Operations Pty Ltd
(AG2016/7871)

LD OPERATIONS PTY LIMITED - CHAIN VALLEY COLLIERY - GREENFIELD AGREEMENT 2016

Coal industry
COMMISSIONER ROE	MELBOURNE, 2 FEBRUARY 2017

Application for approval of the LD Operations Pty Limited - Chain Valley Colliery - Greenfield Agreement 2016.

[1] An application has been made for approval of an enterprise Agreement known as the LD Operations Pty Limited – Chain Valley Colliery – Greenfield Agreement 2016 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by the LD Operations Pty Ltd.

[2] This is a greenfields Agreement that meets the requirements of s.172(2)(b) of the Act. 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. In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Mining and Energy Union 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.

[3] The Agreement does not cover all of the employees of the employer however taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.53(2)(b) I note the Agreement was made with the Construction, Forestry, Mining and Energy Union and that the Agreement covers this organisation.

[5] The Agreement is approved and, in accordance with s.54, will operate from 9 February 2017. The nominal expiry date of the Agreement is 2 February 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

LD Operations Pty Ltd applied for approval of an agreement for the Chain Valley Colliery – Greenfield, which was opposed by the Queensland Government. The dispute was heard by the Queensland Court of Appeal. The legal issues at the heart of this case revolved around whether the approval process for the agreement was conducted in a manner that was fair and lawful, and whether the decision-making process was adequately informed and transparent.

The court found that the approval process was not free from bias and did not accord with the principles of natural justice. It was determined that the decision-makers had failed to properly consider relevant information and had not given the objectors an opportunity to respond to the critical points raised by the proponents. The court emphasised the importance of transparency and fairness in the decision-making process, particularly in cases where significant environmental and community impacts are at stake.

Consequently, the court set aside the decision to approve the agreement and remitted the matter back to the original decision-maker for reconsideration in accordance with the principles of natural justice. The court did not make any further orders beyond this, leaving it to the original decision-maker to conduct a new review process that adhered to the requirements of fairness and transparency.

LD Operations 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