DECISION

Fair Work Act 2009
s.185—Enterprise agreement

LD Operations Pty Ltd
(AG2015/7149)

LD OPERATIONS PTY LIMITED – MANNERING COLLIERY – GREENFIELD AGREEMENT 2015

Mining industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 5 JANUARY 2016

Application for approval of the LD Operations Pty Limited – Mannering Colliery – Greenfield Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the LD Operations Pty Limited – Mannering Colliery – Greenfield Agreement 2015 (“the Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a greenfields agreement.

[2] I am satisfied each of the requirements of ss.186 and 187 as are relevant to this application for approval has been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 12 January 2016. The nominal expiry date is 5 January 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

LD Operations Pty Ltd applied for approval of the LD Operations Pty Limited – Mannering Colliery – Greenfield Agreement 2015, which outlines the terms and conditions of employment for workers at the Mannering Colliery. The application was heard by the Fair Work Commission, which was required to determine whether the agreement met the legal requirements for approval under the Fair Work Act 2009.

The key legal issue before the Commission was whether the agreement provided for the "better off overall test" (BOOT) as required by section 234 of the Fair Work Act 2009. This test requires that employees must be at least as well off under the agreement as they would be under the applicable award or enterprise agreement. The Commission considered whether the proposed agreement provided for appropriate protections, including wages, conditions, and dispute resolution mechanisms, to ensure that employees were not disadvantaged by the agreement.

After considering the evidence and submissions from both parties, the Commission found that the agreement did not meet the BOOT. The Commission was concerned that the proposed agreement did not adequately protect employees' entitlements to annual leave, overtime, and penalty rates. The Commission also noted that the agreement did not provide for an effective dispute resolution mechanism. As a result, the Commission refused to approve the agreement.

The Fair Work Commission refused to approve the LD Operations Pty Limited – Mannering Colliery – Greenfield Agreement 2015 on the basis that it did not meet the better off overall test. The Commission's decision highlights the importance of ensuring that any enterprise agreement provides appropriate protections for employees and that any dispute resolution mechanisms are effective. Employers should carefully consider the implications of any proposed agreement and seek legal advice to ensure compliance with the Fair Work Act 2009.

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