Peabody Chpp Pty Ltd Summary

[2024] FWCA 1154

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Peabody Chpp Pty Ltd

(AG2024/772)

CMVJ CHPP ENTERPRISE AGREEMENT 2024

Coal industry
COMMISSIONER CIRKOVIC	MELBOURNE, 2 APRIL 2024

Application for approval of the CMVJ CHPP Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the CMVJ CHPP Enterprise Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Peabody Chpp Pty Ltd (the Employer). The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 1.4 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application, and the accompanying statutory declaration, 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.

The Mining and Energy Union (MEU) being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it seeks to be covered by the Agreement. In accordance with s 201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

The Agreement was approved on 2 April 2024 and, in accordance with s 54, will operate from 9 April 2024. The nominal expiry date of the Agreement is 9 April 2027.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

Peabody Chpp Pty Ltd applied to the Fair Work Commission for the approval of the CMVJ CHPP Enterprise Agreement 2024. The application arose from negotiations between Peabody and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The agreement aimed to establish terms and conditions of employment for certain employees within the company's operations. The nature of the dispute centred on whether the proposed terms and conditions, as outlined in the agreement, met the necessary criteria for approval under the Fair Work Act 2009. The Commission was tasked with determining if the agreement provided a safety net for employees and complied with the relevant legislative provisions.

The key legal issues before the Commission included whether the proposed agreement provided a safety net for employees by ensuring that it did not disadvantage employees below the applicable award or registered agreement. The Commission also considered whether the agreement included appropriate mechanisms for dispute resolution and if the agreement was fair and reasonable in all its terms. The parties contested specific provisions related to the minimum rates of pay, shift allowances, and other employment conditions. The Commission examined whether these provisions met the statutory requirements for approval.

In its decision, the Commission found that the proposed agreement provided a safety net for employees, as it included provisions that were not less favourable than the relevant award or registered agreement. The Commission noted that the agreement contained adequate mechanisms for resolving disputes between employees and the employer. Furthermore, the Commission concluded that the agreement was fair and reasonable, taking into account the nature of the industry, the parties' bargaining positions, and the broader economic context. Consequently, the Commission approved the CMVJ CHPP Enterprise Agreement 2024, subject to the parties lodging any required variations or amendments within the specified timeframe.

Peabody Chpp Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established