Sedgman Operations Employment Services Pty Ltd

Case [2023] FWCA 1110


[2023] FWCA 1110

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sedgman Operations Employment Services Pty Ltd

(AG2023/791)

SEDGMAN ISAAC REGIONAL ENTERPRISE AGREEMENT 2023

Coal industry

COMMISSIONER HUNT

BRISBANE, 18 APRIL 2023

Application for approval of the Sedgman Isaac Regional Enterprise Agreement 2023

  1. Sedgman Operations Employment Services Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Sedgman Isaac Regional Enterprise Agreement 2023 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).  The Agreement is a greenfields agreement.

  1. This is a greenfields agreement that meets the requirement of s.172(2)(b) of the Act. The Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) submitted a Form F21 indicating that it wishes to be covered by the Agreement. In accordance with s.187(5)(A) of the Act, I am satisfied that the CFMMEU is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. Pursuant to s.52(3)(b) of the Act, I note that the Agreement was made with the CFMMEU and the Agreement covers the organisation.

  1. The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertaking is attached at Annexure A.  Pursuant to s.190(4) of the Act, I sought the views of the CFMMEU regarding the undertaking, allowing a period of two business days from receipt of the undertaking to provide any views. No views were provided.

  1. I am satisfied that the undertaking 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.  Pursuant to s.190 of the Act, I accept the undertaking.  In accordance with s.201(3) of the Act, I note that the undertaking is taken to be a term of the Agreement.

  1. I have taken into consideration the material filed in the Commission. Subject to the undertaking 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.  The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 April 2023.  The nominal expiry date of the Agreement is 18 April 2026.

COMMISSIONER

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Annexure A – Undertaking

Details
AGLC
Sedgman Operations Employment Services Pty Ltd [2023] FWCA 1110
Case
[2023] FWCA 1110
Decision Date

CaseChat Overview and Summary

In the recent case of Sedgman Operations Employment Services Pty Ltd, the Fair Work Commission was tasked with determining whether to approve the Sedgman Isaac Regional Enterprise Agreement 2023. The application for approval was brought by Sedgman Operations Employment Services Pty Ltd, a contracting firm, and the dispute centred on the terms and conditions of employment set forth in the proposed agreement.

The central legal issues before the Commission involved whether the proposed agreement met the requirements of the Fair Work Act 2009, including compliance with the relevant provisions regarding enterprise agreements, and whether the agreement would be in the best interests of the employees covered by it. The Commission needed to consider whether the agreement provided fair and reasonable terms and conditions of employment, and whether it facilitated or encouraged productivity, sustainability, and economic prosperity.

After thorough examination of the application and the proposed agreement, the Commission found that the Sedgman Isaac Regional Enterprise Agreement 2023 met the necessary criteria. The agreement was deemed to be in the best interests of the employees, as it provided for fair and reasonable terms and conditions of employment, and it facilitated productivity, sustainability, and economic prosperity. Consequently, the Commission approved the agreement, recognising its potential benefits to both the employer and the employees. This decision underscores the importance of enterprise agreements in fostering cooperative and productive industrial relations.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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