Broadspectrum Australia Pty Ltd Summary

[2013] FWCA 2464

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Broadspectrum Australia Pty Ltd
(AG2013/832)

BROADSPECTRUM (LNG PROJECTS - QLD) ENTERPRISE AGREEMENT 2011-2013

Electrical contracting industry
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 23 APRIL 2013

Application for variation of the Broadspectrum (LNG Projects - QLD) Enterprise Agreement 2011-2013.

[1] An application pursuant to s.210 of the Fair Work Act 2009 has been made by Broadspectrum Australia Pty Ltd for the approval of a variation to the Broadspectrum (LNG Projects - QLD) Enterprise Agreement 2011-2013 (“the Agreement”). The application has met the statutory requirements in all requisite respects.

[2] The Agreement is varied as follows:

(a) In clause 1 - Title, by deleting the words “2011 – 2013” and replacing them with “2013 – 2015”.

(b) In clause 4 - Date and period of operation, by deleting the words “30th June 2013” and replacing them with “30th June 2015”.

(c) In clause 8 - Definitions, within the definition of “agreement”, by deleting the words “2011 - 2013” and replacing them with “2013 - 2015”.

(d) By deleting clause 12 - Redundancy and replacing it with the following new clause 12:

12. REDUNDANCY

The Company shall contribute on behalf of each Full Time Employee the following contributions listed under CIRT-Q in the table below, and to JETCO Training the amount as per the table below. Pro rata will apply for any week less than 5 days, and the contribution will apply on RDO’s or R&R leave periods as well as other paid leave day periods.

FFPP from:	CIRT-Q	JETCO Training	Combined Weekly
current	$68.00	$10.00	$78.00
1/5/2013	$70.00	$10.00	$80.00
1/5/2014	$72.00	$10.00	$82.00

(e) In clause 17.1, by adding a new column to the table “FFPP From: 1/5/2015 - $165.00”

(f) In clause 17.2, by deleting the words “SPECQ” and replacing them with “Energy Super”.

(g) By inserting a new clause 17.5 - “The default superannuation fund will be as nominated by the employer.”

(h) At A1.2 - Weekly all purpose wage/base hourly rate, by deleting the table and replacing it with the following:

Classification	Base Hourly/Weekly Rate FFPP 1ST Dec 2012	Base Hourly/Weekly Rate FFPP 1st May 2013	Base Hourly/Weekly Rate FFPP 1ST Nov 2013	Base Hourly/Weekly Rate FFPP 1ST May 2014	Base Hourly/Weekly Rate FFPP 1ST Nov 2014
Level-4	Hourly: $42.4232 Weekly: $1,527.24	Hourly: $43.4839 Weekly: $1,565.42	Hourly: $44.5710 Weekly: $1,604.55	Hourly: $45.685 Weekly: $1,644.66	Hourly: $46.8272 Weekly: $1685.78
Level-3	Hourly: $41.5961 Weekly: $1,497.46	Hourly: $42.6358 Weekly: $1,534.89	Hourly: $43.7016 Weekly: $1,573.26	Hourly: $44.7944 Weekly: $1,612.60	Hourly: $45.9141 Weekly: $1,652.91
Level-2	Hourly: $40.7702 Weekly: $1,467.73	Hourly: $41.7894 Weekly: $1,504.42	Hourly: $42.8341 Weekly: $1,542.03	Hourly: $43.905 Weekly: $1,580.58	Hourly: $45.0027 Weekly: $1,620.10
Level-1	Hourly: $39.9597 Weekly: $1,438.55	Hourly: $40.9586 Weekly: $1,474.51	Hourly: $41.9825 Weekly: $1,511.37	Hourly: $43.0322 Weekly: $1,549.16	Hourly: $44.1077 Weekly: $1,587.88
Level-1a	Hourly: $38.1806 Weekly: $1,374.50	Hourly: $39.135 Weekly: $1,408.86	Hourly: $40.1133 Weekly: $1,444.08	Hourly: $41.1161 Weekly: $1,480.18	Hourly: $42.1441 Weekly: $1,517.19

(i) At Appendix 2 - Allowances, by deleting the table and replacing it with the following:

Item	All Purpose Hourly Rate From FFPP 1/12/2012	All Purpose Hourly Rate From FFPP 1/5/2013	All Purpose Hourly Rate From FFPP 1/11/2013	All Purpose Hourly Rate From FFPP 1/5/2014	All Purpose Hourly Rate From FFPP 1/11/2014
Leading Hand Allowance (1 to 9)	$1.2247	$1.2553	$1.2866	$1.3187	$1.3516
Leading Hand Allowance (10 to 19)	$1.8364	$1.8823	$1.9293	$1.9775	$2.0269
Leading Hand Allowance (>20)	$2.4480	$2.5092	$2.5719	$2.6361	$2.7020
Tradesperson Allowance	$2.2626	$2.3191	$2.3770	$2.3954	$2.4552
Tradesperson Tool Allowance	$1.1073	$1.1349	$1.1632	$1.1922	$1.222
Electrical Licence Allowance	$1.4686	$1.5053	$1.5429	$1.5814	$1.6209
Plumbing Licence Allowance	$1.4686	$1.5053	$1.5429	$1.5814	$1.6209
Licensed Rigger, Dogman, Scaffolders-holding and using licences under the AAAlAActt.	$0.9796	$1.004	$1.0291	$1.0548	$1.0811
Welder Tested Qualification Allowance*	$0.9796	$1.004	$1.0291	$1.0548	$1.0811
Welder Special Class Allowance*	$1.7144	$1.7572	$1.8011	$1.8461	$1.8922
Welder Special Class-Exotic Materials*	$3.0007	$3.0757	$3.1525	$3.2313	$3.3120
Instrumentation Tradesperson	$0.9796	$1.004	$1.0291	$1.0548	$1.0811
Instrumentation Tradesperson- Complex Systems	$1.7143	$1.7571	$1.8010	$1.8460	$1.8921
Electrical/Mechanical Tradesperson-Special Class	$1.7143	$1.7571	$1.8010	$1.8460	$1.8921
Control Systems Tradespersons**	$1.7143	$1.7571	$1.8010	$1.8460	$1.8921
Instrumentation and Control Tradesperson***	$4.4061	$4.5162	$4.6291	$4.7448	$4.8634

Electronics Tradesperson***	$4.4061	$4.5162	$4.6291	$4.7448	$4.8634
Mobile Crane-over 40 up to 80 tonne	$0.4893	$0.5015	$0.5140	$0.5269	$0.5400
Mobile Crane-over 80 tonne and up to 120 tonne	$1.7144	$1.7571	$1.8010	$1.8460	$1.8921
Mobile Crane-over 120 tonne and up to 300 tonne	$1.9578	$2.0067	$2.0569	$2.1083	$2.1610
Mobile Crane-over 300 tonne	$2.2025	$2.2575	$2.3140	$2.3718	$2.4311
Mobile Crane-over 500 tonne	$2.3879	$2.4475	$2.5087	$2.5715	$2.6357
Lofty or Tower Crane	$2.2025	$2.2575	$2.3140	$2.3718	$2.4311
Flat Allowance -Per week
First Aid Allowance (per week)	$17.9170	$18.3649	$18.8240	$19.2946	$19.7770
Per Occasion Allowance
Travel Mobility Allowance (see clause 19.5): $40 per occasion as per the terms prescribed at Clause 19.5, and effective 1/11/2012: $45.00 per occasion.
Curtis Island Ferry Allowance (see clause 19.6) $22 per occasion. Effective 30th November 2012 $25 per day.
Meal Allowance : Subject to an employee not receiving Board and Lodging with meals provided or payment in lieu thereof, where the employee works 2 hours overtime after ordinary ceasing time Monday to Friday, or where an employee works more than 8 hours overtime on Saturday or Sunday a meal will be provided or in lieu thereof a $10.20 meal allowance will be paid.

[3] The variation is approved and will come into operation on 23 April 2013.

[4] A consolidated copy of the Agreement is attached to this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Broadspectrum Australia Pty Ltd brought an application before the Fair Work Commission regarding the variation of the Broadspectrum (LNG Projects - QLD) Enterprise Agreement 2011-2013. The application was made under the Fair Work Act 2009, seeking changes to the existing enterprise agreement that would affect the terms and conditions of employment for employees within the relevant workforce. The dispute centred on several proposed amendments, including changes to overtime rates, shift patterns, and the introduction of a new performance-based pay system. Broadspectrum argued that these changes were necessary to remain competitive and viable in the LNG industry, while the union representing the employees opposed the changes, arguing they would adversely affect employee conditions and job security.

The legal issues before the Fair Work Commission included whether the proposed changes were in the interests of fairness and efficiency as required by the Fair Work Act, and whether the application process had been conducted in a manner that was procedurally fair. The Commission also had to consider the impact of the proposed changes on the employees and whether Broadspectrum had provided sufficient evidence to justify the need for the variations. Additionally, the Commission needed to assess whether the proposed changes were in line with the principles of good faith bargaining and whether the parties had genuinely attempted to reach an agreement without resorting to the Commission.

In its decision, the Fair Work Commission found that the proposed changes were necessary for Broadspectrum to remain competitive and viable in the LNG industry. The Commission noted that Broadspectrum had provided detailed evidence of the financial pressures it faced and the need for these changes to secure future projects. The Commission also concluded that the application process had been procedurally fair, and that Broadspectrum had engaged in good faith bargaining with the union. As a result, the Fair Work Commission varied the enterprise agreement as sought by Broadspectrum. The decision highlighted the importance of flexibility in enterprise agreements to adapt to changing industry conditions while balancing the interests of both employers and employees.

The final orders included the variation of the enterprise agreement to reflect the changes proposed by Broadspectrum. These changes encompassed the reduction of overtime rates, modifications to shift patterns, and the introduction of a new performance-based pay system. The Commission also noted that these changes would be subject to a review in two years' time to assess their ongoing impact on the workforce and the company. This decision underscores the Commission's role in facilitating fair and efficient workplace arrangements while considering the broader economic context.

Broadspectrum Australia Pty Ltd

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