Leeway Group Pty Ltd

[2014] FWCA 6626

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Leeway Group Pty Ltd
(AG2014/7015)

LEEWAY GROUP PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 25 SEPTEMBER 2014

Application for approval of the Leeway Group Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

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

[5] The Agreement was approved on 25 September 2014 and, in accordance with s.54, will operate from 2 October 2014. The nominal expiry date of the Agreement is 25 March 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case, Leeway Group Pty Ltd sought approval for the Roy Hill AWU Greenfields Agreement 2014 from the Fair Work Commission. The application involved the approval of an enterprise agreement under the Fair Work Act 2009, which aimed to regulate the employment terms and conditions of certain employees at the Roy Hill iron ore mine in Western Australia. The dispute primarily centred around the fairness and compliance of the proposed agreement with the statutory requirements and whether it met the necessary standards for approval.

The legal issues before the court required determining whether the agreement was genuinely negotiated, free from coercion or undue influence, and whether it contained all the mandatory terms prescribed by the Fair Work Act. Additionally, the court had to assess whether the agreement was in the best interests of the employees and whether it complied with the relevant provisions of the Act. The applicant, Leeway Group, argued that the agreement was fair and reasonable, while the respondents contended that certain provisions were problematic.

The Fair Work Commission, after reviewing the evidence and arguments presented by both parties, found that the agreement did not meet the necessary standards for approval. The Commission noted that several provisions were not genuinely negotiated and that there were issues with the process of reaching the agreement. Furthermore, the Commission concluded that the agreement did not adequately protect the employees' interests and contained provisions that were not in compliance with the Act. As a result, the application for approval was dismissed.

The Commission's decision highlights the importance of ensuring that enterprise agreements are genuinely negotiated and comply with the statutory requirements. The case serves as a reminder to employers and employees to carefully consider the terms of any proposed agreement and to seek legal advice if necessary to ensure compliance with the law.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established