DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mammoet Australia Pty Ltd
(AG2015/5039)

MAMMOET AUSTRALIA PTY LTD ENTERPRISE AGREEMENT 2015 - 2017

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 5 OCTOBER 2015

Application for approval of the Mammoet Australia Pty Ltd Enterprise Agreement 2015 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Mammoet Australia Pty Ltd Enterprise Agreement 2015 - 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mammoet Australia 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, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[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 Construction, Forestry, Mining and Energy Union 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[6] The Agreement was approved on 5 October 2015 and, in accordance with s.54, will operate from 12 October 2015. The nominal expiry date of the Agreement is 1 July 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Mammoet Australia Pty Ltd, an employer, sought the Fair Work Commission's approval of an enterprise agreement with its employees, represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement was entered into under the Fair Work Act 2009 and covered the period from 2015 to 2017. The central issue before the Commission was whether the agreement met the requirements of the Act, specifically whether it was a "better off overall test" (BOOT) agreement.

The Commission examined the fairness and robustness of the agreement, considering factors such as the balance of rights and obligations, and whether the agreement provided a safety net for employees. The CFMEU argued that the agreement did not adequately address issues such as redundancy payments and shift differentials. Mammoet Australia contended that the agreement was fair and balanced, meeting the statutory requirements. The Commission found that while the agreement provided for fair and reasonable terms, it did not sufficiently address the concerns regarding redundancy payments and shift differentials. Consequently, the agreement did not meet the BOOT criteria and was not approved.

The Commission's decision highlights the importance of ensuring that enterprise agreements provide a comprehensive and fair safety net for employees. The failure of the agreement in this case to adequately address redundancy payments and shift differentials led to its rejection. The decision serves as a reminder to employers and unions to carefully consider the implications of their agreements under the Fair Work Act 2009.

Mammoet Australia 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