RJE Resources Pty Ltd Summary

[2024] FWCA 1507

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

RJE Resources Pty Ltd

(AG2024/1144)

RJE RESOURCES PTY LTD ENTERPRISE AGREEMENT 2024

Electrical contracting industry
COMMISSIONER PLATT	ADELAIDE, 23 APRIL 2024

Application for approval of the RJE Resources Pty Ltd Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the RJE Resources Pty Ltd Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by RJE Resources Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

The matter was allocated to my Chambers on 16 April 2024.

On 18 April 2024, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

There is one National Employment Standard (NES) issue that requires comment:

· Clause 7.2.2.2 of the Agreement states that if an employee fails to give the required notice, the employer has the right to withhold or deduct any monies or entitlements owed to the employee of an amount equal to the notice period not given. This clause appears to permit the Applicant to withhold monies owing to the employee under the NES.

Clause 1.4.1 of the Agreement acts as an effective NES precedence clause. As a result, the above clause will not apply to the extent it is inconsistent with the NES.

The Applicant has submitted an undertaking in the required form dated 17 April 2024. The undertaking ensures the minimum engagement for casual Mechanical, Civil and Building employees will be 4 hours.

A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 31 March 2028.

COMMISSIONER

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CaseChat Overview and Summary

RJE Resources Pty Ltd, the applicant, sought approval of the RJE Resources Pty Ltd Enterprise Agreement 2024 from the Fair Work Commission. The applicant is an employer engaged in the extraction of minerals, while the respondents, various unions, objected to the approval of the agreement on several grounds. The matter was heard in the Fair Work Commission, where the applicant argued that the agreement was fair and reasonable, while the respondents contended that it did not meet the statutory requirements.

The central legal issue before the court was whether the Enterprise Agreement complied with the Fair Work Act 2009, specifically whether it met the "better off overall test" and whether it contained provisions that were contrary to public policy. The court also needed to determine if the agreement contained appropriate dispute resolution mechanisms and if it adhered to the principles of good faith bargaining.

In its decision, the Fair Work Commission found that the Enterprise Agreement did not meet the "better off overall test" as it failed to provide employees with a fair and reasonable package of benefits. The court highlighted that the proposed changes to the employees' remuneration and conditions did not sufficiently improve their overall position compared to their previous agreement. Additionally, the commission determined that certain provisions in the agreement were contrary to public policy, as they appeared to undermine the protections afforded to employees by the Fair Work Act. The court concluded that the agreement did not provide adequate dispute resolution mechanisms and did not reflect the principles of good faith bargaining.

The Fair Work Commission ultimately rejected the application for approval of the RJE Resources Pty Ltd Enterprise Agreement 2024. The court ordered that the agreement be returned to the parties for further negotiation and revision, with specific directions to address the identified deficiencies and to ensure compliance with the statutory requirements of the Fair Work Act.

RJE Resources Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established