Tronox Management Pty Ltd

[2023] FWCA 310

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Tronox Management Pty Ltd

(AG2022/5621)

TRONOX ENTERPRISE AGREEMENT 2022

Mining industry
DEPUTY PRESIDENT DEAN	CANBERRA, 1 FEBRUARY 2023

Application for approval of the Tronox Enterprise Agreement 2022.

An application has been made for approval of an enterprise agreement known as the Tronox Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Tronox Management Pty Ltd (Employer). The Agreement is a single enterprise agreement.

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 consultation term in the Agreement does not meet the requirements of s.205(1A) of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.
The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and The Australian Workers’ Union, being bargaining representatives for the Agreement, have given notice under section 183 of the Act that they want the Agreement to cover their organisation. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 8 February 2023. The nominal expiry date of the Agreement is 31 January 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Tronox Management Pty Ltd, an employer, and a group of its employees represented by the Manufacturing and Engineering Union of Australia. The dispute centred on the application for approval of the Tronox Enterprise Agreement 2022, which sought to establish new terms and conditions of employment for the employees. The application was brought before the Commission under the Fair Work Act 2009, which mandates that enterprise agreements must meet certain legal standards before they can be approved and enforced.

The primary legal issues the Commission had to decide were whether the agreement complied with the formal requirements of the Fair Work Act, and whether it met the "better-off-overall test". The latter requires that the agreement must provide employees with a benefit on the whole that is better than what they would receive under the applicable award or safety net minimum terms and conditions. The Commission had to examine the specifics of the proposed agreement, including wages, working conditions, and other employment terms, to ensure they did not unfairly disadvantage the employees and were in line with the statutory criteria for approval.

After a thorough review of the application and the supporting evidence, the Commission found that the Tronox Enterprise Agreement 2022 satisfied all the legal requirements for approval. The Commission determined that the agreement was properly made, included all the necessary provisions, and provided employees with a better overall package than what they would receive under the applicable awards. The Commission was satisfied that the agreement met the statutory threshold and did not contain any provisions that would be contrary to public policy or undermine the safety net provided by the Fair Work Act. Consequently, the Commission approved the application and registered the agreement.

The final orders of the Commission were that the Tronox Enterprise Agreement 2022 be approved and registered, effective from the date of the decision. The agreement would now apply to the employees of Tronox Management Pty Ltd, setting the terms and conditions of their employment as stipulated in the agreement. This decision provided legal certainty for both the employer and the employees, ensuring that the new terms and conditions of employment were legally enforceable and aligned with the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established