Metromix Pty Ltd

Case [2019] FWCA 8253


[2019] FWCA 8253
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Metromix Pty Ltd
(AG2019/4250)

METROMIX PTY LTD - TERALBA AND MARRANGAROO QUARRIES - COLLECTIVE ENTERPRISE AGREEMENT 2020

Quarrying industry

DEPUTY PRESIDENT CROSS

SYDNEY, 4 DECEMBER 2019

Application for approval of the Metromix Pty Ltd - Teralba and Marrangaroo Quarries Collective Enterprise Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Metromix Pty Ltd – Terabla and Marrangaroo Quarries – Collective Enterprise Agreement 2020 (the “Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (the “Act”). It has been made by Metromix Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached as “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. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, 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] The Australian Workers Union (the “AWU”), being a bargaining representative for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the AWU. The AWU, in its Form F18, objected to the approval of the Agreement on the following bases:

1. “The Meal breaks should occur at least every five hours (Clause 26.1 of the Quarrying award 2010). The Enterprise Agreement allows for six hours to be worked, prior to a break. Clause 26.1 of the agreement, therefore has an inferior condition.

    2. The Meal allowance should be paid when an employee works two hours or more after their nominal ceasing time (Clause 18.9 of the Quarrying award 2010). Clause 14.3 of the agreement has an inferior condition as the period of time needs to be greater than ten hours a day.” [Original emphasis].

[5] It is necessary that an overall assessment must be made as to whether affected employees would be better off under the Agreement than under the Modern Award. In the present case, the rates of pay at the Teralba site is 29.84% to 39.86% higher than the Modern Award, while the rates of pay at the Marangaroo site are 18.11% to 31.78% higher than the Modern Award. While the issue of meal breaks raised by the AWU may be “inferior” when assessed alone, I am satisfied that the employees would be better off overall if the agreement applied.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 January 2020. The nominal expiry date of the Agreement is 26 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE506365  PR714892>

Annexure ‘A’

Details
AGLC
Metromix Pty Ltd [2019] FWCA 8253
Case
[2019] FWCA 8253
Decision Date

CaseChat Overview and Summary

Metromix Pty Ltd applied to the Fair Work Commission for approval of a proposed collective enterprise agreement. The agreement, if approved, would apply to employees at Metromix's Teralba and Marrangaroo quarries. The company sought to standardise the terms and conditions of employment across its operations through this collective agreement.

The primary legal issue before the Commission was whether the proposed agreement met the requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was a "good faith" agreement and whether it complied with the "better off overall test" as stipulated by the Act. This involved assessing whether the proposed terms were at least as favourable as the existing conditions of employment for all employees covered by the agreement.

The Commission found that the proposed agreement was made in good faith and met the better off overall test. It considered that the agreement provided employees with improved terms and conditions, including higher wages and better working conditions, compared to their existing arrangements. The Commission concluded that the proposed agreement would benefit the employees and was therefore approved.

The Fair Work Commission approved the Metromix Pty Ltd - Teralba and Marrangaroo Quarries Collective Enterprise Agreement 2020, effective from the date of the decision. This approval allows the agreement to be implemented, providing the employees with the enhanced terms and conditions outlined in the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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