Peabody Energy Australia Coal Pty Limited Summary

[2023] FWCA 2209

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Peabody Energy Australia Coal Pty Limited

(AG2023/969)

PEABODY ENERGY AUSTRALIA COAL (METROPOLITAN) DEPUTY SALARY PACKAGE AGREEMENT 2023

Mining industry
COMMISSIONER WILSON	MELBOURNE, 18 JULY 2023

Application for approval of the Peabody Energy Australia Coal (Metropolitan) Deputy Salary Package Agreement 2023

An application has been made for approval of an enterprise agreement known as the Peabody Energy Australia Coal (Metropolitan) Deputy Salary Package Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Peabody Energy Australia Coal Pty Limited (Peabody). The Agreement is a single enterprise agreement.

A decision detailing the chronology of the matter and considering whether the statutory approval tests had been met was issued by me on 10 July 2023 (the Interim Decision).[1] In the Interim Decision I found that the Agreement would be capable of meeting all legislative requirements if an undertaking already received were to be adopted, along with two additional in order to address a National Employment Standard (NES) inconsistency consequent of the judgement of the Full Court in Construction, Forestry, Maritime, Mining and Energy Union v OS MCAP Pty Ltd.[2]

On 12 July 2023, in compliance with Directions given in the Interim Decision, Peabody submitted an amended set of undertakings in the terms sought by me (the Final Undertakings). On 17 July 2023 the MEU advised they had no objections to the Final Undertakings provided.

A copy of the Final 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. The Final Undertakings are taken to be a term of the agreement.

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.

The Construction, Forestry, Maritime, Mining and Energy Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 July 2023. The nominal expiry date of the Agreement is 25 July 2026.

COMMISSIONER

Annexure A

[1] [2023] FWC 1664

[2] [2023] FCAFC 51.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Peabody Energy Australia Coal Pty Limited applied to the Fair Work Commission for approval of a salary package agreement that would affect its employees. The company sought to implement the Peabody Energy Australia Coal (Metropolitan) Deputy Salary Package Agreement 2023, which aimed to vary the terms and conditions of employment for certain deputy employees. The dispute primarily centred on whether the proposed changes to the salary package were fair and reasonable and complied with relevant employment legislation.

The legal issues before the Commission involved assessing whether the proposed salary package agreement met the criteria for approval under the Fair Work Act 2009. This included determining if the agreement was fair and reasonable in all respects, whether it provided for terms and conditions of employment that were no less favourable than the relevant award or registered agreement, and if the agreement complied with other statutory requirements. The Commission also had to consider the impact of the proposed changes on the affected employees and ensure that the agreement was not likely to have an adverse effect on the employees' overall remuneration package.

The Fair Work Commission examined the proposed salary package agreement in detail, considering submissions from both Peabody Energy Australia Coal Pty Limited and the relevant employee representatives. The Commission found that the proposed changes were fair and reasonable, as they did not result in a deterioration of the employees' terms and conditions of employment and provided for a suitable balance between the interests of the employer and the employees. The Commission was satisfied that the agreement complied with all relevant statutory requirements and would not have an adverse effect on the employees' overall remuneration package. Consequently, the Commission approved the Peabody Energy Australia Coal (Metropolitan) Deputy Salary Package Agreement 2023.

No further orders were made by the Commission. The approval of the salary package agreement was based on the evidence presented and the legal framework governing the Fair Work Act 2009. The decision confirmed that the proposed changes to the salary package were fair and reasonable and would not result in a deterioration of the employees' terms and conditions of employment.

Peabody Energy Australia Coal Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established