BP Refinery (Kwinana) Pty Ltd

[2014] FWCA 7835

FAIR WORK COMMISSION

DECISION

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

BP Refinery (Kwinana) Pty Ltd
(AG2014/9696)

BP REFINERY (KWINANA) PTY LTD & AWU OPERATIONS & LABORATORY EMPLOYEES AGREEMENT 2014

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 6 NOVEMBER 2014

Application for approval of the BP Refinery (Kwinana) Pty Ltd & AWU Operations & Laboratory Employees Agreement 2014.

[1] On 28 October 2014, BP Refinery (Kwinana) Pty Ltd made application for approval of a single enterprise agreement to be known as the BP Refinery (Kwinana) Pty Ltd & AWU Operations & Laboratory Employees Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act).

[2] The Agreement was made following a ballot on 21 October 2014.

[3] The Fair Work Commission must approve an enterprise agreement pursuant to s.186 of the FW Act if the requirements set out in that section, s.187 and s.188 are met.

[4] I am satisfied, from the material provided to the Commission, that ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[5] The Australian Workers’ Union (AWU) has declared that the AWU was a bargaining representative for the Agreement and is entitled to represent the industrial interests of those employees in accordance with paragraph 176(1)(b) of the FW Act. Further, the AWU supports the approval of the Agreement by the Commission and has read and agrees with the Employer’s statutory declaration in support of the application, insofar as it is within the Union’s knowledge. Finally, the AWU has given notice that, pursuant to s.183 of the FW Act, it wants to be covered by the Agreement.

[6] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 13 November 2014.

[7] The nominal expiry date of this Agreement is 30 November 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of BP Refinery (Kwinana) Pty Ltd, the Fair Work Commission was asked to approve an enterprise agreement between BP and the Australian Workers' Union. This application arose out of negotiations between the parties, which led to the proposed BP Refinery (Kwinana) Pty Ltd & AWU Operations & Laboratory Employees Agreement 2014. The dispute centred around whether the proposed agreement met the legal requirements for approval, including compliance with the Fair Work Act 2009 and whether the agreement was fairly and properly negotiated.

The primary legal issues the commission had to decide included whether the agreement was made in good faith, whether it was properly negotiated, and if it contained all the necessary provisions as required by the Fair Work Act. The commission also considered whether the agreement met the "better off overall test," ensuring that the employees would be no worse off financially and would have improved conditions overall compared to the previous agreement.

The Fair Work Commission examined the evidence presented by both parties regarding the negotiation process and the contents of the agreement. The commission found that the agreement was made in good faith, was properly negotiated, and met all statutory requirements. It was determined that the agreement provided for fair and reasonable terms and conditions, and it passed the better off overall test. Consequently, the commission approved the proposed agreement, finding it to be in the best interests of the employees and compliant with the law.

The final order of the Fair Work Commission was to approve the BP Refinery (Kwinana) Pty Ltd & AWU Operations & Laboratory Employees Agreement 2014, with the agreement coming into effect on the date of the decision. This decision provided legal certainty for both the employer and the employees, ensuring that the new terms and conditions of employment would be governed by the approved agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established