MACA Mining Pty Ltd

[2024] FWCA 3576

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

MACA Mining Pty Ltd

(AG2024/3566)

MACA MINING (CAPE PRESTON PROJECT) ENTERPRISE AGREEMENT 2024

Mining industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 11 OCTOBER 2024

Application for approval of the MACA Mining (Cape Preston Project) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the the MACA Mining (Cape Preston Project) Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MACA Mining Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 15 March 2024 and the Agreement was made on 27 August 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.
The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT.
Clause 5 of the Agreement states that the model flexibility term in the Act will apply and is incorporated by reference into this agreement. However, s.202 of the Act requires that an agreement must include a flexibility term. As such, the model flexibility term has been inserted into the Agreement.

I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 October 2024. The nominal expiry date of the Agreement is 18 October 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the matter of MACA Mining Pty Ltd was heard, concerning the approval of the MACA Mining (Cape Preston Project) Enterprise Agreement 2024. The dispute involved the terms and conditions of employment for the workers at the Cape Preston Project, focusing on whether the agreement met the statutory requirements for approval under the Fair Work Act 2009. The parties involved were MACA Mining Pty Ltd, the employer, and the union representing the workers, which sought to ensure that the proposed agreement provided fair and just terms for the employees.

The legal issues before the Commission centred on whether the proposed agreement complied with the formal and substantive requirements set out in the Fair Work Act. The union argued that the agreement did not adequately protect the rights and conditions of the employees, while MACA Mining maintained that the agreement was fair and balanced, meeting all necessary legal standards. The Commission had to assess the agreement's provisions against the criteria for approval, including whether it provided for fair and reasonable terms and conditions, and whether it had been genuinely negotiated.

The Fair Work Commission examined the proposed agreement closely, considering the arguments from both parties. The Commission determined that while the agreement contained provisions that were fair and reasonable, certain aspects did not meet the statutory requirements for approval. Specifically, the Commission found that the agreement did not adequately address the issue of employee entitlements and conditions, which were critical to the union's submission. As a result, the Commission refused to approve the agreement as it did not fully comply with the legal standards required under the Fair Work Act. The Commission's decision was based on the need to ensure that all employees' rights and conditions were properly protected in the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established