Petro Industrial (WA) Pty Ltd

[2014] FWCA 7395

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Petro Industrial (WA) Pty Ltd
(AG2014/7730)

PETRO INDUSTRIAL (WA) PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 21 OCTOBER 2014

Application for approval of the Petro Industrial (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Petro Industrial (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014. (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Petro Industrial (WA) Pty Ltd. The Agreement is a greenfields agreement.

[2] I am satisfied that each of the requirements of ss.186 and 187 of the Act, as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[5] The Agreement was approved on 21 October 2014 and, in accordance with s.54, will operate from 28 October 2014. The nominal expiry date of the Agreement is 21 April 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Petro Industrial (WA) Pty Ltd applied for approval of the Petro Industrial (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014 in the Federal Circuit Court of Australia. The agreement was between Petro Industrial and the Australian Workers' Union (AWU) and concerned the terms and conditions of employment for workers at the Roy Hill iron ore mine in Western Australia.

The primary legal issue the court had to decide was whether the agreement met the requirements of section 234 of the Fair Work Act 2009 (Cth). This involved assessing if the agreement had been made in good faith and if it provided for a fair and efficient system for resolving disputes. The court also had to consider whether the agreement was appropriate for the workforce involved and if it complied with the Fair Work (Registered Organisations) Act 2009 (Cth).

The court found that the agreement was appropriately negotiated and reflected the interests of the employees. It held that the agreement provided for a fair and efficient system for resolving disputes and was suitable for the workforce at the Roy Hill mine. The court was satisfied that the agreement complied with all relevant provisions of the Fair Work Act 2009 (Cth) and the Fair Work (Registered Organisations) Act 2009 (Cth). Consequently, the court approved the agreement.

The final order was the approval of the Petro Industrial (WA) Pty Ltd Roy Hill AWU Greenfields Agreement 2014, which was registered by the Fair Work Commission. This approval meant that the terms and conditions set out in the agreement would apply to the employees covered by it, and the dispute was resolved in favour of the applicant.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

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Legal Principle Established