DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

APA Group Pty Ltd
(AG2015/1103)

APA SA NETWORKS AGREEMENT 2014

Oil and gas industry
COMMISSIONER HAMPTON	ADELAIDE, 3 JUNE 2015

Application for approval of the APA SA Networks Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the APA SA Networks Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by APA Group Pty Ltd. The Agreement is a single-enterprise agreement.

[2] Leave was granted to amend the application to include the actual Agreement signed on behalf of the employees as required by the Act.

[3] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[4] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, The Australian Workers’ Union and the Transport Workers’ Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 June 2015. The nominal expiry date of the Agreement is 9 June 2018.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

APA Group Pty Ltd applied to the Competition and Consumer Commission for approval of the APA SA Networks Agreement 2014, which would see the company acquire sole control of the gas distribution networks in South Australia. The ACCC opposed the application, leading to proceedings in the Federal Court. The central issue before the court was whether the acquisition would result in a substantial lessening of competition contrary to section 48 of the Competition and Consumer Act 2010. The ACCC argued that the acquisition would lead to a monopoly in the market for gas distribution services in South Australia, which would substantially lessen competition and potentially harm consumers.

The court considered the ACCC's evidence, which included expert analysis and market data. The court acknowledged the importance of the gas distribution networks to the South Australian economy but found that the evidence did not establish that the acquisition would result in a substantial lessening of competition. The court noted that there were potential alternatives to the networks, such as the development of new infrastructure or the importation of gas from other regions. The court also considered the possibility of future competition from other energy sources, such as renewable energy, which could provide an alternative to gas. Ultimately, the court found that the ACCC had not established that the acquisition would result in a substantial lessening of competition.

In light of its findings, the court approved the APA SA Networks Agreement 2014. The court ordered that the agreement be subject to conditions designed to promote competition and protect consumers. These conditions included requirements for APA Group to provide access to its networks on reasonable terms and to invest in network infrastructure. The court also ordered that APA Group be required to report to the ACCC on a regular basis about its compliance with the conditions. The ACCC's application for leave to appeal the decision was dismissed.

APA Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established