austlii:cth/FWCA/2026/590
General information, not legal advice.
FWCA
2026-03-10
Original judgment source is linked above.
[2026] FWCA 590 [Note: a correction has been issued to this document]
s.185 - Application for approval of a greenfields agreement
BECHTEL CONSTRUCTION (AUSTRALIA) PTY LTD EVA COPPER MINE PROJECT AGREEMENT (2025)
Application for approval of the Bechtel Construction (Australia) Pty Ltd Eva Copper Mine Project Agreement (2025)
[1] Bechtel Construction (Australia) Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Bechtel Construction (Australia) Pty Ltd Eva Copper Mine Project Agreement (2025) (the Proposed Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Proposed Agreement is a greenfields agreement.
[2] The application for approval was initially allocated to Commissioner Hunt. The file was reallocated to me after Commissioner Hunt took a period of leave. Prior to the file being reallocated to me the matter had been the subject of a conference and hearing before Commissioner Hunt. I directed that correspondence be sent to the parties advising them that I would proceed to determine the matter on the basis of the material before the Commission.
[3] The Proposed Agreement relates to the Eva Copper Mine Project (the Project), located near Cloncurry Queensland. The Project is owned by Eva Copper Mine Pty Ltd (Eva Copper). The Employer has been engaged by Eva Copper to deliver the Project's Copper Concentrator and Non-Process Infrastructure, particularly the construction of a washing facility.
[4] The Proposed Agreement was made with the Australian Workers' Union (the AWU). The Construction, Forestry and Maritime Employees Union (CFMEU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) have advised that they object to the Proposed Agreement being approved by the Fair Work Commission (the Commission). The Employer and the AWU support the Proposed Agreement being approved.
[5] On 21 January 2026, the CFMEU provided an outline of its objections. The same day, the CEPU advised that it objected to the Proposed Agreement being approved. The following day, the AMWU indicated that it objected to approval of the Proposed Agreement. The CFMEU's objections were that, in effect, the Proposed Agreement was contrary to the public interest and is therefore, incapable of approval in accordance with s.187(5) of the Act.
[6] Additionally, the CFMEU and the CEPU contended that the Proposed Agreement, on an overall basis, does not provide for pay and conditions consistent with the prevailing pay and conditions within the relevant industry for equivalent work, pursuant to s.187(6) of the Act. The AMWU advised it shared this view.
[7] In response to the s.187(6) concerns, the AWU noted s.187(6) provides that it only has application to an agreement made under s.182(4) of the Act. As the Proposed Agreement was made under s.182(3) of the Act, the AWU submitted that s.187(6) is not relevant to this matter. The CEPU and the AMWU advised that they withdrew their concerns in respect of s.187(6) of the Act.
[8] Following the withdrawal of the s.187(6) objections, the CFMEU, the CEPU and the AMWU (the Objecting Unions) advised that they pressed their objections in relation to the public interest test. Commissioner Hunt listed the matter for a conference on 29 January 2026. The Objecting Unions advised that they maintained their objections and directions were issued for the parties to file material ahead of a hearing listed on 12 February 2026.
[9] In its material filed in these proceedings, including the witness statement of Mr Paul Dunbar, IR Coordinator, the CFMEU raised additional concerns as to whether the AWU was entitled to represent the industrial interests of a majority of the employees who will be covered by the Proposed Agreement, pursuant to s.187(5)(a) of the Act.
[10] The CFMEU's objection in relation to coverage was, in effect, having regard to the eligibility rules of the AWU and the CFMEU, there is no evidence before the Commission such that the Commission could be satisfied in relation to the s.187(5)(a) prerequisite as it concerns the AWU. The Employer and the AWU asserted that the AWU has coverage over the majority of the classifications of employees under the Proposed Agreement. The CFMEU argued that the Proposed Agreement applies to onsite construction, which is within the eligibility rules of the CFMEU.
[11] Accordingly, the two primary issues in dispute between the Employer and the AWU on one hand, and the Objecting Unions on the other, are:
Is the AWU entitled to represent the industrial interests of a majority of the employees who will be covered by the Proposed Agreement, in relation to work to be performed under the Proposed Agreement?
Is it in the public interest to approve the Proposed Agreement?
[12] Section 182(3) and(4) of the Act provides as follows:
(3) A greenfields agreement is made when it has been signed by each employer and each relevant employee organisation that the agreement is expressed to cover (which need not be all of the relevant employee organisation for the agreement).
(a) a proposed single-enterprise agreement is a greenfields agreement that has not been made under subsection (3); and
(b) there has been a notified negotiation period for the agreement; and
(c) the notified negotiation period has ended; and
(d) the employer or employers that were bargaining representatives for the agreement (the relevant employer or employers) gave each of the employee organisations that were bargaining representatives for the agreement a reasonable opportunity to sign the agreement; and
(e) the relevant employer or employers apply to the FWC for approval of the agreement;
(f) by the relevant employer or employers with each of the employee organisations that were bargaining representatives for the agreement; and
(g) when the application is made to the FWC for approval of the agreement."
[13] Section 187(5) and (6) of the Act state:
"187 When the FWC must approve an enterprise agreement - additional requirements
(5) If the agreement is a greenfields agreement, the FWC must be satisfied that:
(a) the relevant employee organisations that will be covered by the agreement are (taken as a group) entitled to represent the industrial interests of a majority of the employees who will be covered by the agreement, in relation to work to be performed under the agreement; and
(b) it is in the public interest to approve the agreement.
(6) If an agreement is made under subsection 182(4) (which deals with a single-enterprise agreement that is a greenfields agreement), the FWC must be satisfied that the agreement, considered on an overall basis, provides for pay and conditions that are consistent with the prevailing pay and conditions within the relevant industry for equivalent work.
Note: In considering the prevailing pay and conditions within the relevant industry for equivalent work, the FWC may have regard to the prevailing pay and conditions in the relevant geographical area."
[14] Mr Andrew Marsden is the Regional Workforce Services Manager - Asia Pacific of the Employer. He is responsible for Workforce Services functions, which include industrial relations matters such as the negotiation of enterprise agreements. He was the sole representative for the Employer in the negotiation and making of the Proposed Agreement with the AWU.
[15] Mr Marsden stated that construction on the Project is due to commence on 26 February 2026. He stated that the Employer has delayed the mobilisation of employees, including recruitment of employees, pending the approval of the Proposed Agreement. If the approval of the Proposed Agreement is delayed, or if the Proposed Agreement is not approved, Mr Marsden stated that the commencement date will be delayed and the Employer will not be able to deliver on the Project in accordance with the terms of its contract.
[16] The Project is based near the northwest Queensland town of Cloncurry, which has a population of under 4,000. To Mr Marsden's knowledge, Cloncurry and the surrounding region has never housed a copper mining project to the scale or value of the Project. Mr Marsden stated that, based on the Queensland Government's media release in relation to the Project, the Project will generate over 1,000 jobs during the construction phase, and 450 full-time roles in the ongoing operation of the Project over 15 years.
[17] Mr Marsden stated that the Proposed Agreement, including the rates and allowances, were negotiated and determined with the public interest in mind. He noted that the Commission has recently approved two other enterprise agreements for construction works on the Project: the Decmil Australia Enterprise Agreement 2023 (Decmil Agreement) and the MACA Civil Eva Copper Project Enterprise Agreement 2025 (MACA Agreement). Mr Marsden stated that MACA is undertaking civil construction work on the Project and employs labourers, plant operators, concreters, truck drivers, and plant mechanics. He stated that Decmil is building the permanent village on the mine that will exist for the 15 years of operation, and will engage a range of building and construction employees.
[18] The rates in the Decmil Agreement and the MACA Agreement are less favourable than the rates in the Proposed Agreement. Mr Marsden stated that when the Employer negotiated the Proposed Agreement, it considered the rates in the Decmil Agreement and the MACA Agreement, as well as other enterprise agreements for regional projects in the resources industry in Queensland. Mr Marsden provided a spreadsheet outlining a comparison of the rates contained in the Proposed Agreement and the Decmil Agreement and the MACA Agreement. For example, the rate of pay for a CW3 classification in the Proposed Agreement is $46.00. The rate of pay for the same classification in the Decmil Agreement is $39.28 and $40.00 in the MACA Agreement.
[19] The spreadsheet provided by Mr Marsden also provided the rates of pay for classifications under the Multidiscipline Solutions Pty Ltd Enterprise Agreement 2023 (Multidiscipline Agreement), The Sedgman Projects Enterprise Agreement 2025 (Sedgman Agreement) and the Ribshire Pty Ltd t/as Goodline Enterprise Agreement 2022 (Goodline Agreement). The rates of pay for the CW3 classification in these agreements are, respectively, $39.50, $47.86 and $39.96.
[20] I have reviewed the transcript of the proceedings conducted before Commissioner and all of the evidence and submissions filed by the parties, including the grounds for objections made in relation to the Employer and AWU establishing majority coverage and public interest grounds, and evidence in the other statements including from Emma Eaves and Daniel Lacey.
[21] In relation to the coverage issue the Employer and the AWU filed declarations and Mr Marsden gave evidence. The work pertains to the construction of facilities at the Eva Copper Mine.
[22] The Employer and the AWU rely on the AWU industry rules not occupational rules. The AWU closing submissions succinctly set out its claim for coverage under its industry rule.
[23] The test for eligibility under industry rules concerns a consideration of the substantial character of the activities of the employer. The AWU Rule 5, Section 2 Part A(1) makes the following employees eligible to join the AWU:
"Every bona fide worker, male or female, engaged in mental or manual labour in or in connection with the following industries or callings, namely:... metalliferous mining, smelting, reducing and refining of ores ...
[24] Rule 5(4)(c)(i) of the AWU Rules makes eligible to join:
'every bona fide worker employed in or in connection with the industries or callings of...'
'[t]he construction, repair maintenance or demolition of'... '[c]ivil and/or mechanical engineering projects.."
[25] This language is also contained in Rule 6 - Description of Industry.
[26] The AWU has an additional eligibility rules 6A in the State of Queensland as follows:
"(4) Subject to this Rule 6A every bona fide worker male or female, engaged in manual or mental labour in or in connection with any of the following industries or callings namely:
16. (i) Mining, smelting, reducing and/or refining of ores and/or concentrates and/or products, including persons engaged in metal and/or mineral exploration and development work and prospecting incidental to mining."
[27] Rule 6A(3)(b) of the AWU rules includes the following definition:
"(b) Bona fide Worker" means any employee, male or female, engaged in manual or mental labour in or in connection with any of the industries mentioned in Rule 6A(4) hereof"
[28] It is clear following examination of the evidence, the submissions and the Agreement itself, the AWU is entitled to represent the industrial interests of a majority of the employees who will be covered by the Proposed Agreement, in relation to work to be performed under the Proposed Agreement. Based on the evidence before the Commission the AWU is entitled to represent all of the employees that will be covered by the Agreement.
[29] I am also satisfied it is in the public interest to approve the Agreement. The evidence of Mr Marsden sets out the economic benefits that will flow, including significant employment opportunities that approval of the Agreement will help facilitate. The Agreement provides wage increases of 5% per year, and many above award conditions. The Employer has also offered undertakings in response to certain matters raised during the hearing before Commissioner Hunt. I accept those undertakings.
[30] A copy of the undertakings is attached at Annexure A of this decision (Undertakings).
[31] Subject to the Undertakings, and based on the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 190 of the Act as are relevant to the application for approval of the Agreement have been met.
[32] Pursuant to s.53(2)(b) of the Act, I note that the Agreement was made with The Australian Workers Union and covers that organisation.
[33]
The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 March 2025. The nominal expiry date of the Agreement is four years from the date of approval.
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