DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Macmahon Mining Services Pty Ltd
(AG2019/327)

MACMAHON MINING SERVICES AGREEMENT 2018

Mining industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 22 MARCH 2019

Application for approval of the Macmahon Mining Services Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Macmahon Mining Services Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Macmahon Mining Services Pty Ltd on behalf of Macmahon Mining Services Agreement 2018. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings (the Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

[3] The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

[4] Pursuant to subsection 190(3) of the Act, I accept the Undertakings.

[5] Subject to the Undertakings, 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 March 2019. The nominal expiry date of the Agreement is 21 March 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Macmahon Mining Services Pty Ltd sought approval of an agreement with a client, which was challenged by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was heard by the Federal Circuit Court, which had jurisdiction under the Fair Work Act 2009. The dispute centred on whether the proposed agreement would provide better off, better protected, and better organised employees than the existing industrial instrument, and whether it would have an adverse effect on workplace relations.

The court needed to determine whether the agreement met the statutory criteria for approval, including whether it would lead to improved working conditions, and whether it would have a detrimental impact on industrial relations. The court also considered whether the agreement was genuinely intended to be an agreement and whether it was negotiated in good faith. The CFMEU argued that the proposed agreement would result in worse conditions for employees and have a negative impact on industrial relations. Macmahon Mining Services contended that the agreement would improve working conditions and was negotiated in good faith.

The court found that the proposed agreement did not meet the statutory criteria for approval. It determined that the agreement would not provide better off, better protected, or better organised employees compared to the existing industrial instrument. The court also found that the agreement would have an adverse effect on workplace relations, as it would lead to a reduction in the number of employees covered by the agreement and a reduction in their entitlements. The court further found that the agreement was not genuinely intended to be an agreement and was not negotiated in good faith.

The court dismissed the application for approval of the agreement. The court did not grant the approval sought by Macmahon Mining Services, and the agreement was not approved.

Macmahon Mining 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