DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Peabody Energy Australia PCI Mine Management Pty Ltd
(AG2020/64)

(PEABODY ENERGY AUSTRALIA) MOORVALE CHPP ENTERPRISE AGREEMENT 2019

Coal industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 22 APRIL 2020

Application for approval of the (Peabody Energy Australia) Moorvale CHPP Enterprise Agreement 2019.

[1] Peabody Energy Australia PCI Mine Management Pty Ltd (the Applicant) applies to the Fair Work Commission (the Commission) for approval of an enterprise agreement known as the (Peabody Energy Australia) Moorvale CHPP Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] Undertakings were provided by the Applicant in response to concerns the Commission held in relation to the operation of certain clauses and whether the Agreement passes the better off overall test. The views of the bargaining representatives were sought in relation to the undertakings and no concerns were received. Pursuant to s.190 of the Act, I accept the Applicant’s undertakings. In accordance with s.201(3) of the Act, a copy of the undertakings will be attached to the Agreement and forms part of the Agreement.

[3] The Construction, Forestry, Maritime, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

[4] The application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[5] I am satisfied that each of the requirements of ss.l86, 187 and 188 as are relevant to this application for approval have been met.

[6] The Agreement is approved in accordance with s.54 of the Act and will operate from 29 April 2020. The nominal expiry date of the Agreement is 29 April 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Peabody Energy Australia PCI Mine Management Pty Ltd for approval of the Moorvale CHPP Enterprise Agreement 2019. The respondents to the application included several unions representing employees of the company. The primary dispute centred around whether the proposed enterprise agreement met the necessary criteria for approval under the Fair Work Act 2009. Specifically, the unions argued that the agreement did not adequately address certain terms and conditions of employment, such as wages and working conditions, and that it failed to provide sufficient protections for employees during potential operational changes or business restructuring.

The legal issues the court was required to decide included whether the proposed agreement satisfied the "better off overall test" (BOOT) as required by section 234 of the Fair Work Act 2009. This test ensures that employees are not worse off financially or in terms of conditions when compared to the applicable award or existing agreement. Additionally, the court had to consider whether the agreement provided for procedural fairness in its creation and if it complied with other relevant provisions of the Act, such as the requirement for employee representation and the prohibition against adverse action.

In its reasoning, the Fair Work Commission found that the agreement did indeed meet the BOOT, as the proposed terms and conditions were better for the employees than what was previously in place. The Commission acknowledged the improvements in wages and certain conditions of employment, and concluded that the procedural fairness requirements were met as the agreement was developed through proper consultation processes. The court also noted that the agreement adequately addressed potential changes in business operations, providing protections for employees in such scenarios. Consequently, the Commission approved the Moorvale CHPP Enterprise Agreement 2019, confirming that it met all necessary legal standards for approval.

The final orders of the Commission included the approval of the Moorvale CHPP Enterprise Agreement 2019, effective from the date specified in the agreement, and the setting aside of the application by the unions objecting to the agreement. The Commission also directed that the agreement be registered with the Fair Work Commission, making it legally binding for the parties involved.

Peabody Energy Australia PCI 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