Sandvik Mining and Construction Australia Pty Ltd

[2017] FWCA 6816

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Sandvik Mining and Construction Australia Pty Ltd

(AG2017/4115)

Sandvik - Perth Warehouse Hub Enterprise Agreement 2017

Storage services
Deputy President Colman	MELBOURNE, 18 DECEMBER 2017

Application for approval of the Sandvik - Perth Warehouse Hub Enterprise Agreement 2017.

An application has been made for approval of an enterprise agreement known as the Sandvik - Perth Warehouse Hub Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sandvik Mining and Construction Australia Pty Ltd. The agreement is a single enterprise agreement.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Agreement was approved on 18 December 2017 and, in accordance with s.54, will operate from 25 December 2017. The nominal expiry date of the Agreement is 31 March 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sandvik Mining and Construction Australia Pty Ltd applied to the Fair Work Commission for approval of the Sandvik – Perth Warehouse Hub Enterprise Agreement 2017. The application arose from negotiations between the company and the Warehouse and Distribution Employees Union, acting on behalf of the employees. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009 and if it was in the best interests of the employees.

The primary legal issues for the court to consider were whether the agreement contained all the mandatory terms as prescribed by the Fair Work Act 2009 and whether it was made in good faith. The court also needed to assess if the agreement would have a direct and beneficial impact on the employees' conditions of employment. The court had to ensure that the agreement was free from any contravention of the Act and that it provided for a fair and equitable resolution of the terms and conditions of employment.

The Fair Work Commission found that the agreement contained all the mandatory terms and was made in good faith. The court also determined that the agreement was likely to have a beneficial impact on the employees' conditions of employment. The commission was satisfied that the agreement did not contravene the Act and that it provided for a fair and equitable resolution of the terms and conditions of employment. Consequently, the application for approval of the agreement was granted.

The Fair Work Commission approved the Sandvik – Perth Warehouse Hub Enterprise Agreement 2017, subject to the conditions set out in the order. The agreement was to be registered and would have effect from the date of the registration. The decision was made on the basis that the agreement met the requirements of the Fair Work Act 2009 and was in the best interests of the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established