DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Middlemount Mine Management Pty Ltd
(AG2021/5546)

MIDDLEMOUNT COAL ENTERPRISE AGREEMENT 2021

Coal industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 29 JUNE 2021

Application for approval of the Middlemount Coal Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement to be known as the Middlemount Coal Enterprise Agreement 2021 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Middlemount Mine Management Pty Ltd (Employer). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings dated 28 June 2021. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Black Coal Mining Industry Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

[3] The following employee organisation (which was a bargaining representative for the Agreement), has given notice under s.183 of the Act that they want to be covered by the Agreement:

Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU).

[4] In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

[5] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

[6] I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 July 2021. The nominal expiry date of the Agreement is 30 November 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Middlemount Mine Management Pty Ltd applied to the Fair Work Commission for approval of the Middlemount Coal Enterprise Agreement 2021. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), which argued the agreement did not meet the requirements of the Fair Work Act 2009. The Commission, led by Deputy President Rimmer, was tasked with determining whether the agreement was a "better off overall test" (BOOT) agreement, as required by section 173 of the Act.

The central legal issue was whether the agreement provided employees with a BOOT compared to the applicable award. The CFMEU contended that the proposed agreement failed to meet the BOOT standard as it did not offer sufficient benefits to justify the removal of certain protections and entitlements available under the relevant award. The company argued that the agreement did provide a BOOT by enhancing wages, improving work conditions, and offering additional benefits that outweighed any losses. The Commission had to examine the detailed terms of the agreement and compare them to the award provisions to determine if the agreement indeed offered a BOOT.

After a thorough analysis of the agreement's provisions and comparison with the award, Deputy President Rimmer concluded that the Middlemount Coal Enterprise Agreement 2021 did meet the BOOT criteria. The analysis found that the proposed changes, including wage increases, changes to shift patterns, and additional benefits, provided a net benefit to the employees. The Commission found that the overall improvements outweighed any potential disadvantages, thus approving the agreement under section 173 of the Fair Work Act 2009.

Middlemount Mine Management 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