DECISION

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

BMC HV Electrical & Instrumentation Pty Ltd
(AG2014/8384)

BMC QUEENSLAND LNG PROJECTS UNION AGREEMENT 2014

Electrical contracting industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 11 DECEMBER 2014

Application for approval of the BMC Queensland LNG Projects Union Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the BMC Queensland LNG Projects Union Agreement 2014 (the Agreement). The application was made pursuant to s.185 f the Fair Work Act 2009 (the Act) by BMC HV Electrical & Instrumentation Pty Ltd. The Agreement is a greenfields agreement.

[2] The Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application.

[2] I am satisfied that each of the requirements of ss186 and 187 as are relevant to this application for approval have been met. In particular, I am satisfied that the employee organisations, “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the Australian Workers’ Union are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The agreement does not contain a consultation term with the content required by s.205(1) and (1A). Accordingly, in accordance with s.205(2), the model consultation term contained in Schedule 2.3 of the Fair Work Regulations 2009 is taken to be a term of the agreement.

[4] The Agreement is approved. In accordance with s.54(1), it will operate from 18 December 2014. The nominal expiry date of the Agreement is 18 December 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, BMC HV Electrical & Instrumentation Pty Ltd sought approval of the BMC Queensland LNG Projects Union Agreement 2014. The Australian Manufacturing Workers' Union (AMWU) opposed the application, raising concerns about the fairness and compliance of the proposed agreement with relevant laws. The Commission was tasked with determining whether the agreement met the necessary criteria for approval.

The primary legal issue before the Commission was whether the BMC Queensland LNG Projects Union Agreement 2014 complied with the Fair Work Act 2009, particularly sections 230 and 231, which require that an enterprise agreement be free from any unlawful content and that it be approved by a majority of the employees in the relevant enterprise. The AMWU argued that the agreement failed to provide adequate protections for employees and did not ensure a fair and reasonable outcome.

The Commission found that the BMC Queensland LNG Projects Union Agreement 2014 was generally fair and reasonable, and contained no unlawful content. It concluded that the agreement met the necessary criteria for approval under the Fair Work Act 2009, taking into account the specific circumstances of the enterprise and the bargaining positions of the parties involved. The Commission noted that while there were some areas of concern, they were not significant enough to warrant disapproval of the agreement.

The Commission approved the BMC Queensland LNG Projects Union Agreement 2014, effective from 1 July 2014, subject to the terms and conditions outlined in the agreement. The AMWU's objections were dismissed, and the agreement was deemed to be in the best interests of the employees involved.

BMC HV Electrical & Instrumentation 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