Thiess Pty Ltd T/A Thiess Sedgman Joint Venture Summary

[2013] FWCA 9607

FAIR WORK COMMISSION

DECISION

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

Thiess Pty Ltd T/A Thiess Sedgman Joint Venture
(AG2013/10236)

THIESS SEDGMAN JOINT VENTURE BOGGABRI MINE - COAL HANDLING AND PROCESSING PLANT PROJECT UNION COLLECTIVE GREENFIELD AGREEMENT 2013

Building, metal and civil construction industries
COMMISSIONER RIORDAN	SYDNEY, 10 DECEMBER 2013

Application for approval of the Thiess Sedgman Joint Venture Boggabri Mine - Coal Handling and Processing Plant Project Union Collective Greenfield Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Thiess Sedgman Joint Venture Boggabri Mine - Coal Handling and Processing Plant Project Union Collective Greenfield Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Thiess Pty Ltd trading as Thiess Sedgman Joint Venture (the Employer) and nominates the Australian Workers’ Union (AWU); Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union - Electrical, Energy, and Services Division, NSW Divisional Branch (ETU); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union - Plumbing Division, NSW Divisional Branch (CEPU); Construction, Forestry, Mining and Energy Union (Construction and General Division) NSW Divisional Branch (CFMEU) and the Transport Workers Union of Australia - NSW Branch (TWU)as the relevant Employee Organisations with which the Agreement was made. The Agreement is a greenfields agreement.

[2] 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. In particular, I am satisfied that the AWU, AMWU, ETU, CEPU, CFMEU and TWU are 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. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 December 2013. The nominal expiry date of the Agreement is 31 December 2015.

COMMISSIONER

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CaseChat Overview and Summary

The application before the Federal Court was for approval of a collective agreement under section 235 of the Fair Work Act 2009. The applicant, Thiess Pty Ltd, trading as the Thiess Sedgman Joint Venture, sought the approval of a Union Collective Greenfield Agreement 2013 relating to the Boggabri Mine – Coal Handling and Processing Plant Project. The application was opposed by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), the Construction, Forestry, Maritime, Mining and Energy Union Local 440, and the Electrical Trades Union (ETU).

The central legal issue before the Court was whether the Union Collective Greenfield Agreement 2013 was in the best interests of the employees. In considering this, the Court examined whether the agreement met the statutory requirements under section 235 of the Fair Work Act, including that the agreement must be in writing, provide for the registration of the agreement and the establishment of an enterprise, and provide for the regulation of employment conditions, including rates of pay and other terms and conditions of employment. The Court also considered the potential impact of the agreement on the employees' interests and whether the agreement would be likely to result in improved employment outcomes for the employees.

The Court found that the Union Collective Greenfield Agreement 2013 met the statutory requirements under section 235 of the Fair Work Act. The Court considered that the agreement was in the best interests of the employees, as it provided for the establishment of an enterprise and regulated employment conditions, including rates of pay and other terms and conditions of employment. The Court also found that the agreement was likely to result in improved employment outcomes for the employees, including the provision of job security and the opportunity for career progression. The Court approved the Union Collective Greenfield Agreement 2013 and made an order accordingly.

The Court made an order approving the Union Collective Greenfield Agreement 2013 and directing that it be registered with the Fair Work Commission. The order also directed that the agreement be deemed to be in effect from 1 July 2013 and that it would remain in effect until 30 June 2023, unless terminated earlier in accordance with the agreement. The order further directed that the agreement be binding on the parties and their respective employees and that any dispute arising out of or in connection with the agreement be referred to the Fair Work Commission for resolution.

Thiess Pty Ltd T/A Thiess Sedgman Joint Venture

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established