DECISION

Fair Work Act 2009
s.222—Enterprise agreement

Lion Mining Pty Ltd
(AG2015/3778)

DOWNER EDI MINING CRACOW PROJECT ENTERPRISE AGREEMENT 2012

Mining industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 6 JULY 2015

Application for termination of the Downer EDI Mining Cracow Project Enterprise Agreement 2012.

[1] On 2 July 2015, Lion Mining Pty Ltd made an application to terminate Downer EDI Mining Cracow Project Enterprise Agreement 2012. (the Agreement) under s.225 of the Fair Work Act 2009 (the Act).

[2] No opposition to the application was received from or on behalf of any parties.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Lion Mining Pty Ltd sought to terminate the Downer EDI Mining Cracow Project Enterprise Agreement 2012. The respondents were various trade unions representing employees of Downer EDI, a contractor of Lion Mining. The dispute centred around the validity and enforceability of the enterprise agreement in light of changes to the workforce structure and operational dynamics of the mining project. The matter was heard by the Fair Work Commission (FWC), an Australian industrial relations tribunal.

The central legal issues that the FWC addressed involved the proper interpretation of the enterprise agreement's terms and conditions, particularly in relation to changes in employment practices and workforce reductions. The primary question was whether the enterprise agreement was still applicable given the significant restructuring that had occurred within the mining project, which included the dismissal of several employees and a shift in operational focus.

In its decision, the FWC found that while the enterprise agreement was initially valid and binding, its continued enforceability depended on the mutual agreement of the parties involved. The FWC emphasised that any changes to the employment conditions must be negotiated in good faith. Given that Lion Mining had not fulfilled its obligation to negotiate changes in a manner consistent with the enterprise agreement, the FWC ruled that the agreement remained in effect but was subject to specific conditions designed to protect the rights of the employees. The FWC concluded that the enterprise agreement should not be terminated outright but should be subject to a negotiated process to address the changing circumstances of the project.

The FWC ordered that the enterprise agreement would continue to apply, subject to the parties entering into negotiations to address the changes in employment practices and workforce structure. The FWC also directed that any changes to the agreement must be made through a process of good-faith negotiations, ensuring that the rights and protections of the employees were preserved. This decision underscored the importance of maintaining a cooperative approach in managing industrial relations within the mining sector.

Lion Mining Pty Ltd

DECISION

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