Jurisdictional error
35 In my view, Item 30(2) did not have the effect ascribed to it by the Full Bench in [24] of its reasons; nor did s 58 of the FW Act.
36 The reasoning employed by the Full Bench in relation to each of the statutory provisions (s 58(2) and Item 30(2)) appears to put aside the terms of cl 2 of the agreement as ineffective. The agreement was expressed not to cover or apply to employees working at sites where any greenfields agreement was in operation, or any successor to it, whether its nominal expiry date had passed or not. It was therefore not expressed to cover employees at the Worsley Project (s 53(1)); it was expressed not to cover them. As it did not cover them, it could not apply to them (s 52(1)(b)).
37 The error of construction to which I have referred was an important one.
38 In places the Full Bench stated in conclusory terms that the agreement-making process was invalid as a result of the exclusion of the Worsley Project employees from voting. Thus, referring to cl 2, the Full Bench said:
[24] … The drafting of the clause is such as to attempt to minimise the number of employees who, under s.181 of the Act, were entitled to vote for it. That section required MI&E to request employees who were employed at the time, and who would be covered by the Agreement, to approve it by voting for it.
and:
[35] … Whilst it is not free from doubt as to whether the employees to which the Shenton Park agreement applied, which was still within its nominal life, should have voted (the Appellants submit they should have) in our opinion those on the Worsley project clearly were entitled. … They were persons who under s.181 of the Act would be covered by the Agreement and were employed at the time and therefore should have been requested by MI&E to approve the Agreement by voting for it.
and:
[36] Had clause 2 been drafted in a manner consistent with the Act the Worley [sic] project employees in employment at the time negotiations commenced (which was in February 2012) would have been entitled to have participated in the negotiations for the Agreement and in the vote for it. This consideration goes to the compliance with the pre-approval steps and whether the Agreement was validly made. …
39 However, the Full Bench also appeared to regard the exclusion of Worsley Project employees by cl 2 of the agreement as unfair, with the result that s 186(3) was not satisfied. Thus, the Full Bench said:
[26] In our opinion the exclusion of the Worsley agreement employees was unfair. In finding to the contrary the Deputy President was in error.
40 The Full Bench also appeared to take the view that it would not be possible, despite the terms of cl 2 of the enterprise agreement, for the applicant to make a new agreement (greenfields or otherwise) with respect to a future project. This led the Full Bench to say:
[31] … The coverage and application of clause 2 has been referred to numerous times by us. It applies in respect of any employment with MI&E throughout Western Australia of persons in the large number of classifications referred to in the Agreement. The Agreement envisages that work will be undertaken on project sites and contains a site allowance for such work. It envisages that employees may be required to work at the workshop (presumably Bibra Lake) or transfer between locations covered by the Agreement, and when at those other locations they may be paid a higher rate of pay or receive additional allowances. It is not at all apparent how MI&E could enter into any greenfields agreement that would come within the Act's definition of such.
[32] In summary, MI&E wished to move its employees between Bibra Lake and any other site in Western Australia where it may have work and then back again to Bibra Lake (or presumably some other site in Western Australia where it had work for the employees to do). Clause 2 was designed to apply to employees when at Bibra Lake and then to allow another agreement (either a greenfields, an enterprise agreement or some other agreement not regulated by the Act, either in or outside of any nominal expiry date) to apply whilst the work was being done and then the Agreement would again apply. It is clear that the Act and s.58 in particular does not allow for this to occur. The suggestion that whilst on specific site work the Agreement application to an employee was somehow suspended or displaced finds no support in the Act.
[33] The coverage of the Agreement was not consistent with the Act and the Agreement could not operate in the way MI&E had wished. In our opinion this consideration is also relevant to whether the group of employees covered by it was fairly chosen and weighs against our being satisfied such a finding should have been made.
(Footnote omitted.)
41 In my respectful view, this construction of the statutory scheme was also erroneous. I see no reason why a new greenfields agreement for a specific project could not be made, provided the statutory requirements were observed.
42 The enterprise agreement applied (subject to cl 2(b)) to an identified range of employees in Western Australia. In the case of persons who were to be employed at a new project, but had not yet been engaged, the enterprise agreement could not apply to them until they became employed. If, before then, a valid greenfields agreement was made which covered their employment I see no reason at present why cl 2(b) would not be effective. The condition in s 58(2)(a) (that the earlier agreement applies) would not be engaged in relation to such employees. At the time of employment the greenfields agreement would apply and the enterprise agreement would not cover them. Section 58 would not operate in those circumstances.
43 The Full Bench assumed that the intention was that employees would be transferred between sites and potentially into and out of the application of different agreements. It is true that s 58 would not permit that to occur; only one enterprise agreement can apply to an employee in relation to particular employment. However, the consequence is not that cl 2 (or the enterprise agreement) is invalid but rather that the state of affairs assumed by the Full Bench could not be effected. If employees to whom the enterprise agreement applied were transferred to another site the enterprise agreement (and not a new site or project agreement) would apply to them if the transfer was made in the same (and not new) employment. But that left an effective operation for cl 2(b) in the case, as I have said, of new employees at a site or project.
44 However, it is not necessary to pursue this matter further in the present case. It is the earlier analysis by the Full Bench, and its conclusion that Item 30(2) and/or s 58 had the effect that the employees at the Worsley Project would be covered by the new agreement, and that it would apply to them, as soon as it came into effect which is the point at which the Full Bench initially misdirected itself about the statutory scheme in a way which sufficiently demonstrates jurisdictional error.
45 Neither Item 30(2) nor s 58 has the effect suggested by the Full Bench because the proposed enterprise agreement did not express itself to cover or to apply to the Worsley Project employees. The fact that it may (if drafted differently) have done so might be a reason for examining whether the group of employees covered by the agreement was fairly chosen, but the analysis could not commence with a finding that cl 2 was legally barred, or rendered legally ineffective, by either Item 30(2) or s 58, or that the agreement was, or would be, invalid as a result. In my respectful view, that premise is integral to the reasoning by the Full Bench and cannot be sustained. It shows jurisdictional error.