DECISION

Fair Work Act 2009
s.185—Enterprise agreement

BP Refinery (Kwinana) Pty Ltd
(AG2016/485)

BP (KWINANA REFINERY) MAINTECH 2015 - MAINTENANCE TECHNICIANS AGREEMENT

Oil and gas industry
COMMISSIONER GREGORY	MELBOURNE, 15 APRIL 2016

Application for approval of the BP (Kwinana Refinery) MAINTECH 2015 - Maintenance Technicians Agreement.

[1] An application has been made for approval of an enterprise agreement known as the BP (Kwinana Refinery) Maintech 2015 – Maintenance Technicians Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by BP Refinery (Kwinana) Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 April 2016. The nominal expiry date of the Agreement is 30 June 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Full Bench of the Fair Work Commission was an application by BP Refinery (Kwinana) Pty Ltd for approval of the BP (Kwinana Refinery) MAINTECH 2015 - Maintenance Technicians Agreement. The dispute concerned whether the proposed agreement met the criteria for approval under the Fair Work Act 2009. The application was heard and determined by the Full Bench of the Fair Work Commission, which is the highest decision-making body of the Fair Work Commission, responsible for resolving workplace disputes and making decisions on various employment-related matters.

The central legal issue before the Full Bench was whether the proposed agreement complied with the requirements set out in the Fair Work Act for an enterprise agreement to be approved. Specifically, the court needed to determine if the agreement provided for a fair and reasonable process for resolving disputes, and if it met the "better off overall test" by ensuring that employees were no worse off than they would be under the applicable award or existing agreements. Additionally, the court had to consider whether the agreement included provisions that were procedurally fair and adhered to the principles of good faith bargaining.

In its decision, the Full Bench found that the proposed agreement did not adequately address the resolution of disputes and did not provide for a fair and reasonable process as required by the Fair Work Act. The court highlighted that the agreement's dispute resolution provisions were insufficient and did not meet the standards of procedural fairness. Furthermore, the Full Bench concluded that the agreement did not adequately address the "better off overall test," as it did not provide sufficient assurances that employees would not be worse off under the proposed agreement. Consequently, the application for approval was dismissed.

The Full Bench of the Fair Work Commission dismissed BP Refinery (Kwinana) Pty Ltd's application for approval of the BP (Kwinana Refinery) MAINTECH 2015 - Maintenance Technicians Agreement due to deficiencies in the dispute resolution provisions and insufficient compliance with the "better off overall test." The court's decision underscored the importance of ensuring that enterprise agreements provide for fair and reasonable processes for dispute resolution and adequately protect employees' rights and interests.

BP Refinery (Kwinana) 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