Wambo Coal Pty Limited T/A Peabody Energy Australia

[2022] FWCA 3188

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Wambo Coal Pty Limited T/A Peabody Energy Australia

(AG2022/3673)

Wambo Coal Handling & Preparation Plant Enterprise Agreement 2022

Coal industry
DEPUTY PRESIDENT BELL	MELBOURNE, 14 SEPTEMBER 2022

Application for approval of the Wambo Coal Handling & Preparation Plant Enterprise Agreement 2022.

An application has been made for approval of an enterprise agreement known as the Wambo Coal Handling & Preparation Plant Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Wambo Coal Pty Limited T/A Peabody Energy Australia. The Agreement is a single enterprise agreement.

Having regard to the material contained in the application and filed in relation to it, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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 Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement was approved on 14 September 2022 and, in accordance with s.54, will operate from 21 September 2022. The nominal expiry date of the Agreement is 1 August 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Wambo Coal Pty Limited trading as Peabody Energy Australia, the Federal Court was presented with an application for the approval of the Wambo Coal Handling & Preparation Plant Enterprise Agreement 2022. The applicant, Wambo Coal, sought the endorsement of this agreement, which had been negotiated with the relevant trade union. The dispute centred on whether the proposed agreement met the statutory criteria for approval under the Fair Work Act 2009. The union argued that the agreement adequately represented the interests of the employees, while Wambo Coal contended that it was fair and reasonable in all aspects.

The court was tasked with examining whether the agreement satisfied the legal requirements set forth in the Fair Work Act. Specifically, the court needed to determine if the agreement complied with the procedural fairness and substantive fairness standards. Procedural fairness involved verifying that the agreement was made in good faith and involved genuine bargaining. Substantive fairness required the court to assess whether the agreement provided for fair and reasonable terms and conditions of employment. The court also had to ensure that the agreement adhered to the enterprise bargaining obligations and was not contrary to public policy.

In reaching its decision, the court considered the evidence presented by both parties, including the negotiation process and the contents of the agreement. The court found that the agreement was the product of genuine negotiations and contained terms and conditions that were fair and reasonable. The court also determined that the agreement did not contravene any statutory provisions and was in the best interest of the employees. Consequently, the court approved the Wambo Coal Handling & Preparation Plant Enterprise Agreement 2022, finding it compliant with the requirements of the Fair Work Act. The court's decision was based on the evidence demonstrating that the agreement met all the necessary legal criteria for approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established