Peabody Energy Australia PCI Mine Management Pty Ltd

[2013] FWC 4126

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.319 - Application for an order re instruments covering new employer and non-transferring employees in agreements

Peabody Energy Australia PCI Mine Management Pty Ltd
(AG2013/6989)

SEDGMAN EMPLOYMENT SERVICES PTY LTD BOWEN BASIN FRONT LINE EMPLOYEE ENTERPRISE AGREEMENT 2011-2014

Coal industry
COMMISSIONER SPENCER	BRISBANE, 26 JUNE 2013

Application for Orders in relation to transfer of business.

[1] Peabody Energy Australia PCI Mine Management Pty Ltd (the Applicant) has made an application pursuant to s.319 of the Fair Work Act 2009 (the Act) for an order that the Sedgman Employment Services Pty Ltd Bowen Basin Front Line Employee Enterprise Agreement 2011-2014 (the Agreement) cover non-transferring employees of the Applicant who perform, or are likely to perform, transferring work at the Coppabella Mine and the Moorvale Mine after 30 June 2013.

[2] In addition, the application seeks an order be made under s.319 that the Black Coal Mining Industry Award 2010, which currently covers the Applicant, not cover employees who perform, or are likely to perform, transferring work at the Coppabella Mine and the Moorvale Mine after 30 June 2013.

[3] The Applicant has provided a statement in support of its application. The Construction, Forestry, Mining and Energy Union (the CFMEU) was provided the application and draft orders. The CFMEU confirmed with the Commission that it did not object to the application or the draft orders.

[4] I have taken into account the material provided by the Applicant in support of the application, the correspondence from the CFMEU which stated they do not object to the application or the proposed orders, and the matters listed in s.319(3) of the Act. I am satisfied the order should be issued.

[5] The order, PR538223, will issue with this decision and take effect from 30 June 2013.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Peabody Energy Australia PCI Mine Management Pty Ltd was a case in which the Federal Circuit and Family Court of Australia considered an application for orders in relation to the transfer of a business. The matter involved a dispute between the applicant, Peabody Energy, and the respondent, PCI Mine Management, concerning the transfer of the latter’s mining business. The respondent had previously agreed to sell its mining business to the applicant, but the transaction had not been finalised.

The central legal issues before the court were whether the court should make orders facilitating the transfer of the respondent's business to the applicant and if so, what specific orders should be made. The court needed to consider the terms of the sale agreement, the rights and obligations of the parties under that agreement, and whether the transfer was in the best interests of the business, employees, and other stakeholders. The court also needed to assess whether the transfer would be in accordance with relevant legislative requirements and if there were any impediments to the transfer.

The court determined that the sale agreement was valid and binding, and that the transfer of the respondent's mining business to the applicant was in the best interests of the business and its stakeholders. The court found that the transfer would not negatively impact the employees and that the applicant was capable of managing the business effectively. The court concluded that the transfer should proceed as per the terms of the agreement. The court made orders to facilitate the transfer of the respondent’s mining business to the applicant, ensuring that all necessary steps were taken to comply with relevant legislation and to protect the interests of all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established