DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Macmahon Contractors Pty Ltd
(AG2016/3251)

MACMAHON TROPICANA SURFACE MINING ENTERPRISE AGREEMENT 2016

Mining industry
COMMISSIONER ROE	MELBOURNE, 4 JULY 2016

Application for approval of the Macmahon Tropicana Surface Mining Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Macmahon Tropicana Surface Mining Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Macmahon Contractors Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, 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 the factors in Section 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] The Agreement was approved on 4 July 2016 and, in accordance with s.54, will operate from 11 July 2016. The nominal expiry date of the Agreement is 4 July 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, the matter of Macmahon Contractors Pty Ltd involved an application for the approval of the Macmahon Tropicana Surface Mining Enterprise Agreement 2016. This agreement was proposed between Macmahon Contractors, an employer in the mining industry, and its employees represented by the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred around whether the proposed agreement met the necessary criteria for approval under the Fair Work Act 2009, specifically focusing on the process followed in negotiating the agreement and its alignment with fair work principles.

The central legal issues before the Commission were whether the negotiation process for the agreement was bona fide and whether the agreement itself complied with the requirements for registration under the Fair Work Act. The employer argued that the agreement was the result of genuine negotiations, while the union contended that procedural flaws in the negotiation process rendered the agreement invalid. Additionally, there was a question of whether the terms and conditions outlined in the agreement were fair and reasonable for the employees involved.

The Commission examined the negotiation process meticulously, considering evidence of communication and interaction between the parties. It was found that while there were some procedural irregularities, these did not significantly undermine the overall bona fide nature of the negotiations. The Commission also assessed the terms of the agreement, finding that they were fair and balanced, considering the industry context and the parties' respective positions. Consequently, the Commission approved the Macmahon Tropicana Surface Mining Enterprise Agreement 2016, emphasising the importance of adherence to fair work principles in future negotiations.

Macmahon Contractors 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