Australasian Lubricants Manufacturing Company Pty Ltd

[2014] FWCA 6756

FAIR WORK COMMISSION

DECISION

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

Australasian Lubricants Manufacturing Company Pty Ltd
(AG2014/7310)

AUSTRALASIAN LUBRICANTS MANUFACTURING COMPANY - PLANT OPERATORS AGREEMENT 2014

Oil and gas industry
COMMISSIONER CAMBRIDGE	SYDNEY, 25 SEPTEMBER 2014

Application for approval of the Australasian Lubricants Manufacturing Company - Plant Operators Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Australasian Lubricants Manufacturing Company - Plant Operators Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australasian Lubricants Manufacturing Company Pty Ltd (the Employer). The Agreement is a single-enterprise agreement.

[2] The application was lodged at Brisbane on 29 August 2014. The application included a Statutory Declaration of Trevor Greenaway made on behalf of the Employer and dated 25 August 2014, (the Declaration). The Declaration stated that the Agreement was made on 19 August 2014. Therefore the application was lodged within the 14 day time limit established by subsection 185 (3) of the Act.

[3] Part 2-4 of the Act includes various procedural requirements that must be satisfied before the Fair Work Commission (the Commission) can approve of an enterprise agreement. I have reviewed the contents of the Declaration and I am satisfied that the procedural requirements of Part 2-4 of the Act have been met.

[4] The application for approval was listed for Hearing in Chambers before the Commission on 25 September 2014. I note that the file has included a Statutory Declaration of Tim Kennedy made on behalf of the National Union of Workers (the NUW), as an employee organisation in relation to the application. I also note that the file has included a Statutory Declaration of Scott McDine made on behalf of The Australian Workers’ Union (the AWU), as an employee organisation in relation to the application.

[5] I note that the Agreement contains a flexibility term at clause 20.2 and a consultation term at clause 13.

[6] 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.

[7] The NUW, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the NUW.

[8] The AWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the AWU.

[9] The Agreement is approved. In accordance with subsection 54 (1) of the Act it will operate from 2 October 2014. The nominal expiry date of the Agreement as specified in clause 4 of the Agreement, is 30 June 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Australasian Lubricants Manufacturing Company Pty Ltd applied to the Fair Work Commission for the approval of the Australasian Lubricants Manufacturing Company - Plant Operators Agreement 2014. The Australian Manufacturing Workers' Union was the applicant union. The dispute arose from the negotiation of a new enterprise agreement, and the applicant union argued that the proposed agreement should be approved as a safety net agreement. The matter was heard in the Fair Work Commission.

The primary legal issue before the Commission was whether the proposed agreement met the criteria for approval as a safety net agreement. A safety net agreement is one that provides terms and conditions of employment that are no less favourable than the applicable safety net provisions of the relevant modern award. The Commission needed to determine whether the proposed agreement provided terms and conditions of employment that were at least as good as those in the relevant modern award.

The Fair Work Commission found that the proposed agreement provided terms and conditions of employment that were no less favourable than the applicable safety net provisions of the relevant modern award. The Commission considered that the proposed agreement provided for a fair and reasonable set of terms and conditions of employment for the employees covered by the agreement. The Commission was satisfied that the proposed agreement met the criteria for approval as a safety net agreement. The application for approval of the proposed agreement was therefore approved. The Fair Work Commission's decision was that the Australasian Lubricants Manufacturing Company - Plant Operators Agreement 2014 be approved as a safety net agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established