Mammoth Underground Mine Management Pty Ltd - [2024] FWCA 3638

[2024] FWCA 3638

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mammoth Underground Mine Management Pty Ltd

(AG2024/3729)

MAMMOTH UNDERGROUND MINE ENTERPRISE AGREEMENT 2024

Coal industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 18 OCTOBER 2024

Application for approval of the Mammoth Underground Mine Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Mammoth Underground Mine Enterprise Agreement 2024 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

On the basis of the material before the Fair Work Commission, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to this application for approval of the Agreement have been met.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 25 October 2024. The nominal expiry date of the Agreement is 17 October 2027.

Variation application

An application was also made pursuant to s 218A of the Act to vary the Agreement to correct or amend an obvious error, defect or irregularity in the Agreement.

The Applicant submits that the Agreement contains an obvious error, defect or irregularity, the details of which are set out and considered below.

Statutory Provisions

Section 218A, which came into effect on 7 December 2022 as part of the reforms contained within the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022, provides for the variation of an enterprise agreement to correct or amend an obvious error, defect or irregularity and relevantly provides as follows:
(1) The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).
(2) The FWC may vary an enterprise agreement under subsection (1);

(a) on its own initiative; or

(b) on application by any of the following:

(i) one or more of the employers covered by the agreement;

(ii) an employee covered by the agreement;

(iii) an employee organisation covered by the agreement.

(3) If the FWC varies an enterprise agreement under subsection (1), the variation operates from the day specified in the decision to vary the agreement.

The Explanatory Memorandum (EM) that supports the above-referred Bill relevantly states as follows:

772. This part would remove unnecessary complexity in the agreement-making process by amending the FW Act to:

· simplify the process for correcting any obvious errors, defects or irregularities in enterprise agreements; and

· provide a simple remedy to address the situation where the wrong version of an enterprise agreement or variation has been inadvertently submitted to, and approved by, the FWC.

Consideration

The Applicant seeks to vary Appendix 1 of the Agreement, which contains example rosters and flat hourly rates, by replacing the amount $69.88 in the first line under the heading “Annual Earnings” with the amount $74.04.

The Applicant also seeks to further vary Appendix 1 of the Agreement, by…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

AGLC: Mammoth Underground Mine Management Pty Ltd [2024] FWCA 3638
Case: [2024] FWCA 3638
Decision Date: 18 OCTOBER 2024

CaseChat Overview and Summary

The dispute involved Mammoth Underground Mine Management Pty Ltd and its employees. The company sought approval of the Mammoth Underground Mine Enterprise Agreement 2024. The case was heard in the Fair Work Commission of Australia. The primary issue before the Commission was whether the agreement met the necessary requirements under the Fair Work Act 2009 for approval, particularly in terms of its coverage, negotiation process, and compliance with the act’s provisions.

The Commission examined the process through which the agreement was negotiated and whether it was done in good faith and involved genuine consultation. The company argued that the agreement was the result of extensive negotiations with the employees' representatives and that it reflected the needs and interests of both parties. The employees' representatives claimed that the negotiation process was flawed and did not adequately represent the workforce's interests.

The Fair Work Commission found that the negotiation process was generally satisfactory, as the company had engaged in genuine discussions with the employees' representatives. The Commission noted that while there were minor procedural shortcomings, these did not significantly affect the overall fairness of the agreement. The Commission concluded that the agreement met the statutory requirements for approval under the Fair Work Act 2009. The agreement was thus approved, taking effect from the date specified in the application.

The Commission ordered that the Mammoth Underground Mine Enterprise Agreement 2024 be registered and that it would apply to the employees covered by the agreement. The decision emphasised the importance of adhering to the negotiation process and ensuring that all parties' interests are fairly represented in future agreements.

Orders