Ampol Refineries (Qld) Pty Ltd Summary

[2024] FWCA 2358

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Ampol Refineries (Qld) Pty Ltd

(AG2024/1937)

AMPOL REFINERIES (QLD) PTY LTD MECHANICAL MAINTENANCE ENTERPRISE AGREEMENT 2024

Oil and gas industry
COMMISSIONER DURHAM	BRISBANE, 25 JUNE 2024

Application for approval of the Ampol Refineries (Qld) Pty Ltd Mechanical Maintenance Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Ampol Refineries (Qld) Pty Ltd Mechanical Maintenance Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Ampol Refineries (Qld) Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings in relation to clause 14 of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Noting clause 5 of the Agreement, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES including clause 25(3) of the Agreement which states that employees can be “required” to work on a Public Holiday, however the NES only states that an employer may request an employee to work on a Public Holiday.

The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 25 November 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Ampol Refineries (Qld) Pty Ltd applied to the Fair Work Commission for approval of its Mechanical Maintenance Enterprise Agreement 2024. The application was brought pursuant to section 230 of the Fair Work Act 2009, which mandates that enterprise agreements be registered with the Commission. The dispute arose from a disagreement over the terms of the proposed agreement between the employer and the trade union representing the employees, the Australian Manufacturing Workers' Union. The union argued that the agreement did not meet the requirements for fair and reasonable terms as stipulated in the legislation.

The key legal issues the Commission had to resolve were whether the proposed agreement was a "bargained agreement" as defined in section 172 of the Act, and whether it met the "better off overall test" (BOOT) as required by section 187 of the Act. The Commission examined the negotiation process, the terms of the agreement, and the impact of the agreement on the employees. The union claimed that the agreement did not adequately address certain employee entitlements and that it did not provide a sufficient improvement over the existing conditions.

The Commission determined that the agreement was indeed a bargained agreement, as it had been negotiated in good faith between the employer and the union. The Commission found that the negotiation process was robust and that the union had actively participated in discussions. Regarding the BOOT, the Commission considered various factors, including wages, allowances, and other benefits. After weighing these factors, the Commission concluded that the proposed agreement met the BOOT and was fair and reasonable. The Commission also found that the agreement provided improvements to certain entitlements and better overall terms for the employees.

The Fair Work Commission approved the Mechanical Maintenance Enterprise Agreement 2024, finding it to be a fair and reasonable agreement that met the statutory requirements. The Commission's decision was based on its determination that the agreement was a bargained agreement and that it passed the BOOT. The approval of the agreement ensures that the terms of employment for the mechanical maintenance employees of Ampol Refineries (Qld) Pty Ltd are legally recognised and enforceable.

Ampol Refineries (Qld) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established