Australian Workers' Union Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) v Santos Limited

[2018] FWC 5987

[2018] FWC 5987

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009

s.739 - Application to deal with a dispute

Australian Workers' Union

Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU)

v

Santos Limited

(C2018/5083, C2018/5096)

Santos Ltd Cooper Basin Enterprise Agreement 2016
[AE421148]

Oil and gas industry
COMMISSIONER HAMPTON	ADELAIDE, 26 SEPTEMBER 2018

1. The Australian Workers' Union (AWU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union known as the Australian Manufacturing Workers' Union (AMWU) have each made applications under s.739 of the Fair Work Act 2009 (the Act) relating to an apparent dispute with Santos Limited.

1. The applications relate to Internal Management of Change (MOC) documents and initiatives and rely upon the Santos Limited Cooper Basin Enterprise Agreement 2016 (the EA), which covers the work in question and the parties.

1. The Commission convened a conference in this matter on 25 September 2018. All parties constructively participated in what was a comprehensive discussion of the events leading to the applications and the various perspectives about the circumstances now applying within the Upstream and Port Bonython operations of Santos.

1. The context for these matters includes that as part of the EA, and under processes established by that agreement, changes in staffing levels and other arrangements occurred at a time when Santos was experiencing a significant drop in commodity prices and foreshadowed reductions in activity levels. At that time, the MOC process was fully applied and this included, by agreement between the parties, an external review conducted by an agreed Consultant. That Consultant made some recommendations as part of a safety review that informed the final versions of the relevant MOC documents.

1. In essence, the Unions contend that a further external safety review should be conducted by the Consultant given that the actual levels of production and operations are higher than anticipated. This they suggest has led, or could lead, to increased “over-cycle” and additional hours with an impact upon fatigue levels. Further, the review would consider whether all of the elements of the Consultant’s review have been carried out. The Unions have also offered to share the funding of the external review.

1. Santos contends that an external review is not necessary or appropriate given that the changes have already been introduced, all of the safety and production KPI’s are favourable and continue to be monitored, and there are internal mechanisms to review and deal with any concerns that the employees have or wish to raise. Further, it contends that a further review of Upstream operations is already being implemented that is capable of progressing some of the matters.

1. Without any of the parties conceding the merit of their respective positions, it has been agreed that Santos will confirm the proposed parameters of an internal review that acknowledges the concerns raised by the Unions and provides a mechanism which enables both those concerns and the need for continuous improvement within the operations to be advanced in a constructive and accountable manner.

1. Accordingly, Santos will by no later than the morning of Monday 15 October 2018 provide to the Unions a written proposal outlining matters such as:

   ·  The terms of reference for the internal review(s) including that it will, amongst other matters, consider the safety implications of the recent developments and the present circumstances;

   ·  How evidence based decisions might be informed by the provision of appropriate data and information;

   ·  How the consultative mechanisms will be utilised in the review(s);

   ·  Timeframes;

   ·  Reporting mechanisms; and

   ·  Any objectives for the review(s) that might be considered.

1. The proposal will be considered at a Single Bargaining Unit (SBU) meeting on Monday 15 and Tuesday 16 October 2018.

1. Following the SBU, the Unions will provide a written response to Santos.

1. The matter is adjourned to a report back conference before the Commission at 10.00am on Thursday 25 October 2018. A separate notice of listing will be issued and this conference may, on application, be delayed or cancelled if that step becomes appropriate.

1. I observe that all parties have reserved their rights including for the Unions to seek a determination of the application and for Santos to address any issues about the proper foundation for the matter.

1. Liberty to apply generally has also been granted.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<PR700796>