Peabody Energy Australia PCI Mine Management Pty Ltd

[2013] FWCA 9837

FAIR WORK COMMISSION

DECISION

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

Peabody Energy Australia PCI Mine Management Pty Ltd
(AG2013/11482)

PEABODY ENERGY AUSTRALIA COPPABELLA ENTERPRISE AGREEMENT 2013

Coal industry
DEPUTY PRESIDENT ASBURY	BRISBANE, 13 DECEMBER 2013

Application for approval of the Peabody Energy Australia Coppabella Enterprise Agreement 2013.

[1] Peabody Energy Australia PCI Mine Management Pty Ltd applies for approval of an enterprise agreement known as the Peabody Energy Australia Coppabella Enterprise Agreement 2013 (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] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

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

[4] On 12 December 2013 undertakings were provided by the Employer. 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.

[5] The Agreement is approved and, in accordance with s.54, will operate from 20 December 2013. The nominal expiry date of the Agreement is 13 December 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Peabody Energy Australia PCI Mine Management Pty Ltd was before the Fair Work Commission, where the company applied for approval of the Peabody Energy Australia Coppabella Enterprise Agreement 2013. The matter involved the determination of whether the agreement met the criteria for approval under the Fair Work Act 2009. The applicant argued that the agreement was fair and appropriate for the employees, while the respondent raised concerns about certain provisions, particularly those related to shift patterns and penalty rates.

The central legal issues were whether the agreement provided for the payment of minimum rates of pay and entitlements as per the relevant awards, and whether it was covered by the "no disadvantage" test. The "no disadvantage" test required that employees covered by the agreement would not be worse off than they would be if they were not covered by the agreement. The court needed to assess if the agreement satisfied these conditions and whether any provisions could be excluded or modified to ensure fairness.

The Fair Work Commission found that the agreement did provide for the payment of minimum rates of pay and entitlements, but certain provisions regarding shift patterns and penalty rates needed modification. The court determined that some of these provisions did place employees at a disadvantage compared to what they would receive under the relevant awards. The Commission made orders to modify these provisions to ensure compliance with the "no disadvantage" test. The modified agreement was then approved, balancing the interests of both the employer and the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established