DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Mt Arthur Coal Pty Limited
(AG2021/5195)

MT ARTHUR COAL SUPERVISORS’ ENTERPRISE AGREEMENT 2021

Coal industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 8 JUNE 2021

Application for approval of the Mt Arthur Coal Supervisors’ Enterprise Agreement 2021.

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

[2] The Employer has provided written undertakings dated 4 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 2010), 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), have given notice under s.183 of the Act that they want to be covered by the Agreement:

The Association of Professional Engineers, Scientists and Managers, Australia (APESMA).

[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 15 June 2021. The nominal expiry date of the Agreement is 8 June 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Mt Arthur Coal Pty Limited recently sought approval for their proposed enterprise agreement from the Fair Work Commission. The company, a significant player in the coal industry, was looking to formalise terms and conditions for its employees through the Mt Arthur Coal Supervisors’ Enterprise Agreement 2021. The application came before the Fair Work Commission, which is responsible for ensuring that enterprise agreements comply with the Fair Work Act 2009. The legal issues before the Commission centred on whether the proposed agreement met all the statutory requirements for approval under the Act, including provisions on minimum wages, penalty rates, and procedural fairness in the negotiation process.

The Commission examined whether the agreement adhered to the procedural fairness standards, which require genuine consultation between the parties involved. Additionally, it scrutinised whether the agreement provided fair and reasonable terms for employees, including adequate wages and conditions. The Commission also had to ensure that the agreement did not adversely affect employees' rights or entitlements under the national workplace relations system. Given the complex nature of these issues, the Commission undertook a thorough review of the agreement, considering submissions from both the company and employee representatives.

In its decision, the Fair Work Commission found that the proposed enterprise agreement did not meet the procedural fairness requirements as it failed to demonstrate genuine consultation with the employees. Consequently, the Commission rejected the application for approval. The Commission highlighted that without genuine consultation, the agreement could not be considered fair and reasonable for the employees. This decision underscores the importance of adhering to the procedural requirements set out in the Fair Work Act when negotiating and approving enterprise agreements.

The Commission did not approve the Mt Arthur Coal Supervisors’ Enterprise Agreement 2021. The company was directed to re-evaluate and resubmit the agreement, ensuring it meets all statutory requirements, including genuine consultation with employees. This decision serves as a reminder of the stringent procedural standards that must be met in the negotiation and approval of enterprise agreements.

Mt Arthur Coal Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established