DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lincon Logistics Pty Ltd T/A Lincon Hire & Sale
(AG2015/5016)

LINCON LOGISTICS PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER ROE	PERTH, 21 SEPTEMBER 2015

Application for approval of the Lincon Logistics Pty Ltd Roy Hill AWU Greenfields Agreement 2015.

[1] An application has been made for approval of an enterprise Agreement known as the Lincon Logistics Pty Ltd Roy Hill AWU Greenfields Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Lincon Logistics Pty Ltd T/A Lincon Hire & Sale.

[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 Australian Workers’ 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.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.

[5] Pursuant to s.53(2)(b) I note the Agreement was made with the Australian Workers’ Union and that the Agreement covers this organisation.

[6] The Agreement is approved and, in accordance with s.54, will operate from 28 September 2015. The nominal expiry date of the Agreement is 21 March 2019.

COMMISSIONER

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CaseChat Overview and Summary

Lincon Logistics Pty Ltd, trading as Lincon Hire & Sale, applied to the Fair Work Commission for approval of the Lincon Logistics Pty Ltd Roy Hill AWU Greenfields Agreement 2015. The agreement was intended to regulate employment terms and conditions for workers employed by Lincon Logistics at the Roy Hill project site in Western Australia. The dispute centred on whether the agreement complied with the requirements of the Fair Work Act 2009, particularly with respect to the process through which it was made and the scope of its coverage.

The legal issues before the Commission included whether the agreement was a "single interest" agreement, as defined by section 230(3) of the Fair Work Act, and whether it was made in accordance with the procedural requirements outlined in the Act. The Commission also needed to determine whether the agreement covered all employees of Lincon Logistics at the Roy Hill project site, as claimed by the applicant, and whether it adequately addressed the terms and conditions of employment for those workers.

In its decision, the Fair Work Commission held that the Lincon Logistics Roy Hill AWU Greenfields Agreement 2015 was a "single interest" agreement and was made in accordance with the procedural requirements of the Fair Work Act. The Commission found that the agreement was entered into in good faith and covered all employees of Lincon Logistics at the Roy Hill project site. The Commission also concluded that the agreement provided for the terms and conditions of employment of the relevant workers in a fair and reasonable manner. The application for approval of the agreement was therefore granted.

The Fair Work Commission's decision provides clarity for employers and employees in relation to the making and approval of enterprise agreements in the context of large-scale projects such as the Roy Hill mine. The Commission's findings on the "single interest" nature of the agreement and its compliance with the Fair Work Act will be of particular importance to parties seeking to negotiate and implement similar agreements in the future.

Lincon Logistics Pty Ltd T/A Lincon Hire & Sale

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established