DECISION

Fair Work Act 2009
s.185—Enterprise agreement

McArthur River Mining Pty Ltd
(AG2019/3312)

MCARTHUR RIVER MINING PTY LTD ENTERPRISE AGREEMENT 2019

Mining industry
COMMISSIONER JOHNS	SYDNEY, 11 SEPTEMBER 2019

Application for approval of the McArthur River Mining Pty Ltd Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the McArthur River Mining Pty Ltd Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by McArthur River Mining Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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.

[4] Although the model clause is taken to be a term of the Agreement, I note the decision of the Full Bench in Auld & Ors v Teekay Shipping Pty Ltd[2019] FWCFB 6047 to the effect that the inclusion of the model term does not render inoperative the existing term in the Agreement

[5] The Agreement lodged contained an error at clause 5.1(a). The Applicant filed an amended version of the Agreement correcting this error. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 September 2019. The nominal expiry date of the Agreement is 10 September 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for the approval of the McArthur River Mining Pty Ltd Enterprise Agreement 2019, the Fair Work Commission was called upon to assess the fairness of the proposed agreement, which was submitted by the employer to ensure its validity. The case involved McArthur River Mining Pty Ltd, the employer, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), the union representing the employees. The dispute centred on the negotiation and content of the enterprise agreement, which aimed to regulate employment terms and conditions for the workers employed by the mining company.

The legal issues the court had to address included whether the enterprise agreement had been made genuinely in the course of negotiations, whether it contained the necessary minimum terms as per the Fair Work Act, and whether it passed the 'better off overall test'. This test requires that the agreement provides employees with terms and conditions that are no worse than their previous entitlements and, in some cases, better. Additionally, the court had to consider whether the agreement was made in good faith and whether the union had genuinely represented the employees during the negotiation process.

In delivering its decision, the Fair Work Commission found that the enterprise agreement had indeed been negotiated in good faith, with the union genuinely representing the employees. The court determined that the agreement contained all the required minimum terms and passed the 'better off overall test'. The Commission was satisfied that the agreement was fair and reasonable, taking into account the specific circumstances of the industry and the bargaining positions of both parties. Consequently, the Commission approved the McArthur River Mining Pty Ltd Enterprise Agreement 2019, confirming its validity and applicability. The decision underscored the importance of genuine negotiations and fair representation in the process of creating enterprise agreements.

McArthur River Mining 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