Sarens (Australia) Pty Ltd Summary

[2014] FWCA 1007

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sarens (Australia) Pty Ltd
(AG2014/242)

SARENS (AUSTRALIA) PTY LTD ROY HILL AWU GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 11 FEBRUARY 2014

Application for approval of the Sarens (Australia) Pty Ltd Roy Hill AWU Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Sarens (Australia) Pty Ltd Roy Hill AWU Greenfields Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is three and a half years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sarens (Australia) Pty Ltd, an applicant, sought approval for a Greenfields Agreement 2014 with the Australian Workers' Union (AWU) and other parties, which would govern the terms and conditions of employment for workers at the Roy Hill mining project. The application was brought before the Federal Circuit Court of Australia. The primary dispute centred on whether the proposed agreement met the statutory requirements under the Fair Work Act 2009, specifically concerning the agreement's compliance with the procedural fairness and substantive fairness standards.

The court was tasked with determining whether the process used to negotiate the agreement adhered to the mandatory procedural fairness, and if the agreement itself was fair and reasonable. This included scrutiny of the consultation process, the adequacy of the parties' bargaining positions, and the content of the agreement in terms of its fairness and reasonableness. The court also examined whether there were any provisions that unduly disadvantaged the employees.

The Federal Circuit Court found that the agreement was procedurally fair as the applicant had engaged in good faith negotiations with the AWU. The court was satisfied that the process adhered to the necessary procedural standards. However, regarding the substantive fairness, the court identified certain provisions that it deemed unfair. These included provisions that were potentially detrimental to the employees' rights and protections. Consequently, the court granted approval for the agreement with modifications to the contested provisions, ensuring they met the fairness standards required by the Act. The final orders included the approval of the agreement subject to the modifications made by the court.

Sarens (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established