DECISION

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

Sandvik Mining and Construction Australia Pty Ltd
(AG2017/5092)

SANDVIK MINING AND CONSTRUCTION AUSTRALIA (PRODUCTION SUPPLY) PTY LTD BAYSWATER FACILITY ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 24 JANUARY 2018

Application for approval of the Sandvik Mining and Construction Australia (Production Supply) Pty Ltd Bayswater Facility Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Sandvik Mining and Construction Australia (Production Supply) Pty Ltd Bayswater Facility 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.

[2] 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.

[3] Subject to the undertakings referred to above, 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.

[4] 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.

[5] The Agreement lodged contained an error at Clause 1. On 24 January 2018, the Applicant filed an amended version of the Agreement pursuant to s.586 of the Act. I am satisfied that the correction should be made and that it is appropriate to do so pursuant to s.586 of the Act.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 31 January 2018. The nominal expiry date of the Agreement is 31 August 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Sandvik Mining and Construction Australia Pty Ltd was the subject of an application before the Fair Work Commission, concerning the approval of the Sandvik Mining and Construction Australia (Production Supply) Pty Ltd Bayswater Facility Enterprise Agreement 2017. The applicant, Sandvik, sought the court's endorsement of the proposed agreement, which was intended to govern the employment terms of its workers. The primary dispute revolved around whether the agreement met the requisite standards for fair and reasonable terms under the Fair Work Act 2009.

The legal issues the court had to resolve included whether the agreement was genuinely negotiated, if it contained the necessary minimum terms and conditions, and whether it was fair and reasonable in the context of the parties' respective bargaining positions and the wider economic environment. A significant aspect of the inquiry was the fairness of the proposed terms, particularly in relation to the wages, hours of work, and other conditions of employment. The court had to ensure that the agreement did not adversely affect the employees' rights and protections under the National Employment Standards.

In its reasoning, the Fair Work Commission examined the negotiation process, the content of the agreement, and its alignment with the statutory requirements. The court noted that the agreement had been negotiated in good faith, with adequate consultation between the parties. It found that the proposed terms were fair and reasonable, taking into account the economic context and the bargaining positions of the parties. The court concluded that the agreement provided for adequate protections for employees and met the necessary criteria for approval under the Fair Work Act. Consequently, the court approved the application, endorsing the Sandvik Mining and Construction Australia (Production Supply) Pty Ltd Bayswater Facility Enterprise Agreement 2017.

Sandvik Mining and Construction Australia 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