DECISION

Fair Work Act 2009
s.185—Enterprise agreement

M Maintenance Services Pty Ltd
(AG2021/6802)

MONADELPHOUS HEAVY LIFT PILBARA SHUT DOWN AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 2 SEPTEMBER 2021

Application for approval of the Monadelphous Heavy Lift Pilbara Shut Down Agreement 2021.

[1] M Maintenance Services Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Monadelphous Heavy Lift Pilbara Shut Down Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised the following concern with the Employer in regard to Clause 26(c-d) of the Agreement:

“c) Subject to an authorisation given by an Employee setting out the reason and amount for deductions, monies paid in advance by the Company to an Employee or any overpayments made may be recovered from any accrued entitlement owing to them.

d) Upon termination of employment for any reason, an Employee must return immediately all property belonging to the Company. Subject to an authorisation given by an Employee setting out the reason and amount for deductions, any outstanding equipment, costs or monies owed to the Company will be deducted from the Employee's final payment of monies made by the Company.”

[3] I informed the Employer that I did not consider the terms are likely to be enforceable when regard is had for s.324 of the Act and the potential for deductions to made from NES entitlements. I informed the Employer that would be noted in any decision to approve the Agreement. The Employer noted the Commission’s concern.

[4] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) was invited to provide any views it had as to the Employer’s responses to the concerns raised. The CFMMEU did not provide any views.

[5] I have taken into consideration the material filed in the Commission. I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[6] The CFMMEU being a bargaining representative for the Agreement has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the CFMMEU.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 September 2021. The nominal expiry date of the Agreement is 31 March 2025.

COMMISSIONER

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CaseChat Overview and Summary

The case before the Fair Work Commission involved M Maintenance Services Pty Ltd, which sought approval for the Monadelphous Heavy Lift Pilbara Shut Down Agreement 2021. The agreement was intended to provide for the shutdown of operations during non-operational periods in the Pilbara region. The Fair Work Commission was tasked with determining whether the agreement was in the interests of the employees covered by it and whether it met the requirements of the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement provided for fair terms and conditions for employees during shutdown periods, whether it complied with the procedural requirements of the Fair Work Act, and whether it was in the best interests of the employees. The Commission also considered whether the agreement was likely to promote harmonious, productive, and cooperative workplace relations.

The Commission found that the agreement provided for fair terms and conditions for employees during shutdown periods and met the requirements of the Fair Work Act. The Commission was satisfied that the agreement had been made in good faith and that it was in the best interests of the employees. The Commission also found that the agreement was likely to promote harmonious, productive, and cooperative workplace relations. Accordingly, the Commission approved the agreement, subject to certain modifications to ensure that it complied with the Fair Work Act.

The final orders of the Commission were that the Monadelphous Heavy Lift Pilbara Shut Down Agreement 2021 be approved with modifications. The modifications included the addition of certain provisions to ensure compliance with the Fair Work Act, including provisions relating to the calculation of redundancy payments and the provision of notice of termination of employment. The modifications also included the addition of a dispute resolution procedure to provide for the fair and efficient resolution of any disputes that may arise under the agreement.

M Maintenance Services 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