Australian Workers' Union, The v Esso Australia Pty Ltd T/A Exxonmobil Australia / Esso

[2023] FWC 3096

[2023] FWC 3096

FAIR WORK COMMISSION

RECOMMENDATION

Fair Work Act 2009

s.240 - Application to deal with a bargaining dispute

Australian Workers' Union, The
v

Esso Australia Pty Ltd T/A Exxonmobil Australia / Esso

(B2023/1122)

COMMISSIONER RIORDAN SYDNEY, 24 NOVEMBER 2023

1. The AWU proactively made an application under s.240 of the Fair Work Act 2009 to have the Fair Work Commission assist the parties to reach a settlement prior to any arbitration.

1. The parties have been negotiating a new enterprise agreement, on and off, for the best part of a decade. The time has come for the parties to move forward. Having met with the Operators at the Heliport on their shift changeover on Wednesday last week and with all Unions, delegates and Esso representatives last Thursday and Monday (20 November 2023). I am hopeful that both sides will accept the following recommendation.

1. Agreement has been reached on an ‘in-principle’ basis in relation to:

-Bedroom Allocation Principles;

-Catering;

-The effect of the Overtime Matrix;

-Long Service Leave at half pay whilst it remains in the Victorian LSL Act.

1. Esso has agreed to a real 22% increase over the life of the Agreement, which will also apply to all allowances. However, the parties cannot reach agreement as to the split of the 22%.

1. To end the impasse I recommend the following increases to the base rates and allowances:-

-1.10.23 – 4%

-1.10.24 – 10% (3% will be backpaid if the new roster is not ready to be introduced on this date)

-1.10.25 – 3%

-1.10.26 – 5%

1. If the Agreement is endorsed, in the very near future, Esso will apply the Agreement from 1 October 2023. Relevantly, Esso has agreed that the Agreement will expire on 30 September 2027. Normally, agreements operate from 7 days after the Agreement has been approved by the Commission. In this case, due to the proximity of Christmas, it is unlikely that the Agreement would be approved by the Commission until mid-January 2023. Without the commitment from Esso, the operative date would be late January 2024 with an expiry of late January 2028. An expiry date of 30 September 2027 is a negotiated victory for the employees.

1. It is also worth noting, based on the expiry date explanation above, the Agreement will actually expire in 3 years and 9 months which equates to an actual increase above the Union’s wages claim of 22% over 4 years.

1. I acknowledge the argument that Esso has benefited from the wages freeze over the last decade. I note the Wage Price Index in Victoria has increased by 27% over this period. However, it cannot be said that EA proposals have not been put to employees, who have exercised their democratic right to not endorse those proposed agreements. I am of the view though, that an upfront one-off payment is appropriate in this circumstance as a sign-on bonus. After taking into account the backpay to 1 October 2023, the shortening of the Agreement by 3 months to 30 September 2027 and the agreement to increase all allowances by 22%, I recommend that Esso pay a sign-on bonus of $2000.

1. The introduction of Norwegian roster is a major change in this agreement. I know that not every employee is a supporter of this roster. Change is difficult. However, from the people I have spoken to who have worked this roster for a few years, they are all supporters of the proposed roster. The increase in leisure time is a major reason for their support, as is the reduction in the number of times per annum that an employee has to travel to and from work.

1. I strongly recommend the proposed wages outcome, sign-on bonus and the introduction of the Norwegian roster. It is time for Esso and its employees to put this long-running dispute behind them.

1. I so Recommend.

COMMISSIONER

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