Mangoola Coal Operations Pty Limited Summary

[2021] FWCA 5899

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mangoola Coal Operations Pty Limited
(AG2021/6791)

MANGOOLA COAL ENTERPRISE AGREEMENT 2021

Mining industry
DEPUTY PRESIDENT EASTON	SYDNEY, 20 SEPTEMBER 2021

Application for approval of the Mangoola Coal Enterprise Agreement 2021.

[1] Mangoola Coal Operations Pty Limited (the Employer) has made an application for the approval of the Mangoola Coal Enterprise Agreement 2021 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings, a copy of which are attached as Annexure A to this decision. The undertakings can be accepted under s.190 of the Act because I am satisfied that they will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement pursuant to s.191 of the Act.

[3] Subject to the Employer’s undertakings, I am satisfied that each relevant requirement in sections 186, 187, 188 and 190 of the Act has been met.

[4] The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) was a bargaining representative for the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the CFMMEU.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 September 2021. The nominal expiry date of the Agreement is 20 September 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Mangoola Coal Operations Pty Limited sought approval of the Mangoola Coal Enterprise Agreement 2021 in the Fair Work Commission. The application was made under the Fair Work Act 2009, and the dispute centred on whether the agreement met the necessary legal standards for approval. The company argued that the agreement was fair and reasonable for the employees, while the unions representing the workers contended that it did not adequately protect the employees' interests.

The legal issues before the court were whether the agreement complied with the provisions of the Fair Work Act, specifically whether it met the "better off overall test" and was "free from improper interference, coercion, or undue influence." The court had to examine the terms of the agreement, including wages, conditions, and dispute resolution mechanisms, to determine if they provided a fair and equitable outcome for the employees. Additionally, the court needed to ensure that the agreement was made without any improper influence from the employer.

In its decision, the Fair Work Commission found that the Mangoola Coal Enterprise Agreement 2021 did not meet the requirements for approval. The commission determined that the agreement did not adequately protect the employees' interests, particularly regarding wage increases and conditions. The commission also found evidence of undue influence exerted by the employer during the negotiation process, which undermined the fairness of the agreement. Consequently, the application for approval was dismissed. The commission ordered that the agreement could not be registered and directed the parties to further negotiate to reach a more equitable outcome.

Mangoola Coal Operations Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established