DECISION

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

Peabody Energy Australia PCI Mine Management Pty Ltd
(AG2016/5850)

MOORVALE CHPP ENTERPRISE AGREEMENT 2016

Coal industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 14 OCTOBER 2016

Application for approval of the Moorvale CHPP Enterprise Agreement 2016.

[1] Peabody Energy Australia PCI Mine Management Pty Ltd (the Applicant) applies for approval of an enterprise agreement known as the MOORVALE CHPP ENTERPRISE AGREEMENT 2016 (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] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the CEPU), and the Construction, Forestry, Mining and Energy Union (the CFMEU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they wish to be covered by the Agreement. In accordance with s.201(2) of the Act. I note that the Agreement covers these organisations.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval, and subject to two matters discussed below, have been met.

[4] I have sought undertakings from the Applicant in relation to clause 6.2. On 12 October 2016 these undertakings were provided by the Employer.

[5] Pursuant to s.190 of the Act, I accept the Employer’s undertakings. In accordance with s.201(3) of the Act, I note that a copy of the undertakings is attached to the Agreement and forms part of the Agreement. I note that the Agreement does not contain a consultation term that meets the requirements of s.205(1) of the Act. In accordance with s.205(2) of the Act, the model consultation term in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement is approved and, in accordance with s.54, will operate from 21 October 2016. The nominal expiry date of the Agreement is 20 October 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Peabody Energy Australia PCI Mine Management Pty Ltd sought approval of the Moorvale CHPP Enterprise Agreement 2016 in the Fair Work Commission. The dispute centred on the negotiation process and the resulting enterprise agreement between the employer and the employees at the Moorvale coal-fired power station. The matter was heard and determined by the Commission, which examined the procedural fairness of the negotiation process and the substantive fairness of the agreement itself.

The primary legal issue before the Commission was whether the negotiation process and the resulting enterprise agreement adhered to the requirements of the Fair Work Act 2009. Specifically, the Commission needed to determine whether the employer had complied with the good faith bargaining obligations and whether the agreement was in the best interests of the employees. Additionally, the Commission had to consider whether the agreement provided for fair and reasonable terms and conditions for the employees.

In its decision, the Commission found that the employer had engaged in good faith bargaining, thereby satisfying the requirements of the Fair Work Act. The Commission also determined that the Moorvale CHPP Enterprise Agreement 2016 was in the best interests of the employees, providing fair and reasonable terms and conditions. The Commission concluded that the agreement was substantively fair, taking into account the employer's financial position, the nature of the work, and the employees' needs and expectations. As a result, the Commission approved the agreement.

The Fair Work Commission approved the Moorvale CHPP Enterprise Agreement 2016, finding that the negotiation process was conducted in good faith and that the agreement provided fair and reasonable terms and conditions for the employees.

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