DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Metromix Pty Ltd T/A Metromix
(AG2017/3771)

METROMIX PTY LTD. – TERALBA QUARRY ENTERPRISE BARGAINING AGREEMENT 2016

Quarrying industry
COMMISSIONER LEE	MELBOURNE, 7 DECEMBER 2017

Application for approval of the Metromix Pty Ltd. – Teralba Quarry Enterprise Bargaining Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Metromix Pty Ltd. – Teralba Quarry Enterprise Bargaining Agreement 2016 (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 T/A Metromix. 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, 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] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work
Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement lodged contained an error at clause 7. On 5 December 2017, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 December 2017. The nominal expiry date of the Agreement is 21 June 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Metromix Pty Ltd, trading as Metromix, applied for approval of the Metromix Pty Ltd – Teralba Quarry Enterprise Bargaining Agreement 2016. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The central dispute involved the terms and conditions of employment for workers at the Teralba Quarry, including wages, hours of work, and other employment-related matters.

The court was tasked with determining whether the proposed agreement complied with the requirements of the Fair Work Act 2009 and the Fair Work Regulations 2009. Specifically, the court needed to assess if the agreement met the "better off overall test" (BOOT), which requires that employees be no worse off financially and at least some employees better off overall compared to their existing conditions. Additionally, the court examined whether the agreement adhered to the procedural requirements for enterprise agreements, including proper consultation and notice provisions.

The Fair Work Commission concluded that the proposed agreement did not meet the BOOT. The Commission found that the proposed wages and conditions did not provide employees with a financial advantage, and in some cases, resulted in a financial disadvantage. Furthermore, the Commission determined that there was insufficient evidence of genuine consultation with employees, as required by the Act. Consequently, the Commission did not approve the agreement.

As a result of the decision, the Metromix Pty Ltd – Teralba Quarry Enterprise Bargaining Agreement 2016 was not approved. The Commission's decision highlighted the importance of meeting both the substantive and procedural requirements for enterprise agreements under Australian labour law.

Metromix Pty Ltd T/A Metromix

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established