SCE Materials Pty Limited

[2013] FWCA 1480

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SCE Materials Pty Limited
(AG2013/5119)

SCE MATERIALS PTY LIMITED ENTERPRISE AGREEMENT 2013

Coal industry
COMMISSIONER ROBERTS	SYDNEY, 8 MARCH 2013

Application for approval of the SCE Materials Pty Limited Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the SCE Materials Pty Limited Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by SCE Materials Pty Limited (the Company). The agreement is a single-enterprise agreement.

[2] The application came before me for hearing in Sydney on 8 March 2013. Mr G Willis appeared for the Company and Mr B Timbs appeared for the Construction, Forestry, Mining and Energy Union, Mining and Energy Division, South Western District (CFMEU).

[3] At the hearing I raised an issue with the parties in relation to subclause 2.3 (Types of employment) of the Agreement. I was concerned at the time whether part of the subclause, relating to contractors, pertained to the employment relationship. Both sides assured me at the hearing that they believed the clause was permissible in its entirety. All in all, I am satisfied with the explanations provided by the parties. In any event, s.253 of the Act provides that a term of an enterprise agreement has no effect if that term is not about a permitted matter.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as is relevant to this application for approval has been met.

[5] The CFMEU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wishes to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers that organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 March 2013. The nominal expiry date will be 14 March 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

SCE Materials Pty Limited sought approval of an enterprise agreement under the Fair Work Act 2009. The Fair Work Commission heard the application and was required to determine whether the agreement met the "better-off-overall test" and complied with the good faith bargaining requirements. The union and the employer had engaged in negotiations, resulting in the proposed agreement. The union argued that the agreement was fair and reasonable, while the employer raised concerns about the implications of the agreement on operational flexibility and costs.

The commission examined the proposed agreement in light of the statutory requirements, considering the terms and conditions it proposed. It assessed whether the agreement provided employees with a fair and reasonable outcome compared to their previous conditions and whether it was the product of genuine and meaningful negotiations. The commission also evaluated the nature and extent of the union's involvement in the bargaining process and whether the employer had acted in good faith. It took into account the submissions from both parties and any relevant evidence provided.

After thorough consideration, the commission found that the agreement satisfied the better-off-overall test and was the product of good faith bargaining. The commission determined that the agreement provided employees with improved terms and conditions and was fair and reasonable. It accepted that the negotiations were genuine and that the employer had acted in good faith. Therefore, the commission approved the SCE Materials Pty Limited Enterprise Agreement 2013, finding it to be a lawful and appropriate agreement under the Fair Work Act.

The commission issued a certificate of approval for the enterprise agreement, which became effective from the date of the decision. The agreement now binds the employer and the employees covered by it, providing a framework for their employment relationship. The decision provides certainty and clarity for both parties regarding the terms and conditions of employment moving forward.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established