DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BP Australia Pty Ltd
(AG2016/7809)

CASTROL & NUW PLANT OPERATORS AGREEMENT 2016

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 15 FEBRUARY 2017

Application for approval of the Castrol & NUW Plant Operators Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Castrol & NUW Plant Operators Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BP Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The National Union of Workers being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 February 2017. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

BP Australia Pty Ltd sought approval from the Fair Work Commission of the Castrol & NUW Plant Operators Agreement 2016, which was intended to govern the employment of operators at its Bulwer Island Refinery. The Australian Manufacturing Workers' Union opposed the application, arguing that the agreement failed to adequately protect the employees' interests and contained terms that were potentially unfair. The dispute came before the Full Bench of the Fair Work Commission, which was required to determine whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue was whether the agreement satisfied the "better off overall test" as stipulated in section 233 of the Act. This test requires that employees be no worse off financially and, where possible, better off overall under the proposed agreement compared to the applicable awards. The Commission needed to assess whether the agreement provided for fair compensation, reasonable working conditions, and adequate protections for the employees. Additionally, the Commission had to consider whether any terms in the agreement were contrary to public policy or would result in employees being worse off overall.

The Full Bench found that the agreement did meet the better off overall test and did not contain any terms that were contrary to public policy. The Commission emphasised that the agreement provided for a comprehensive package of benefits, including wages, allowances, and other entitlements, which were comparable or superior to those available under the relevant awards. Furthermore, the Commission noted that the agreement included provisions for dispute resolution and protection against adverse action, which were beneficial to the employees. Consequently, the Commission approved the Castrol & NUW Plant Operators Agreement 2016.

In approving the agreement, the Commission made clear that it had considered the overall balance of the agreement and the interests of the employees. It found that the agreement provided for fair and reasonable terms and conditions of employment, and that employees would not be worse off overall. The Commission's decision was based on a detailed analysis of the agreement's provisions and the evidence presented by both parties. The Commission's approval of the agreement means that it will now apply to the employees covered by it, and will govern their employment terms and conditions.

BP Australia 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