DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Caltex Australia Petroleum Pty Ltd
(AG2019/4727)

CALTEX LYTTON LUBRICANTS PLANT OPERATORS ENTERPRISE AGREEMENT 2019

Oil and gas industry
DEPUTY PRESIDENT CROSS	SYDNEY, 20 MARCH 2020

Application for approval of the Caltex Lytton Lubricants Plant Operators Enterprise Agreement 2019.

[1] An application has been made for the approval of an enterprise agreement known as the Caltex Lytton Lubricants Plant Operators Enterprise Agreement 2019 (‘the Agreement’). The application was made by Caltex Australia Petroleum Pty Ltd (‘the Applicant’) pursuant to s 185 of the Fair Work Act 2009 (‘the Act’). The Agreement is a single-enterprise agreement.

[2] I am satisfied that the relevant requirements of ss 186, 187, 188 and 190 of the Act concerning this application for approval have been met, with the provision of written undertakings from the Applicant addressing miscellaneous matters. Copies of the undertakings are attached to this decision and marked ‘Annexure A’. I note that the undertakings are taken to be terms of the Agreement.

[3] The United Workers Union (‘the UWU’) and the Australian Workers Union (‘the AWU’), have given notice under s 183 of the Act that they wish to be covered by the Agreement. In accordance with s 201(2) of the Act, I note that the Agreement covers the UWU and the AWU.

[4] The Agreement is approved and, in accordance with s 54 of the Act, will operate from 27 March 2020. The nominal expiry date of the Agreement is 20 March 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case before the Fair Work Commission was an application by Caltex Australia Petroleum Pty Ltd for approval of the Caltex Lytton Lubricants Plant Operators Enterprise Agreement 2019. The dispute arose from negotiations between Caltex and the Australian Manufacturing Workers' Union regarding terms and conditions for employees operating the lubricants plant at the Lytton Refinery. The Fair Work Commission was tasked with determining whether the proposed agreement met the necessary standards for approval under the Fair Work Act 2009.

The central legal issues involved ensuring the agreement complied with the procedural fairness requirements set out in the Fair Work Act, and whether it adhered to the "better off overall test" (BOOT). This test requires that employees under the agreement be no worse off financially and have at least one improved condition of employment compared to the previous agreement or applicable award. Additionally, the court had to consider whether the agreement contained all mandatory terms prescribed by the Act and whether it was genuinely negotiated between the parties.

In its decision, the Fair Work Commission held that the proposed agreement satisfied all legal criteria for approval. The Commission found that the agreement was genuinely negotiated and contained all mandatory terms. The BOOT was also met, as employees would experience at least one improved condition of employment, alongside financial benefits. Furthermore, the Commission was satisfied that the process by which the agreement was negotiated and presented complied with procedural fairness. Therefore, the Commission approved the agreement.

The Commission made an order approving the Caltex Lytton Lubricants Plant Operators Enterprise Agreement 2019, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would govern the employment conditions of the relevant employees at the Lytton Refinery.

Caltex Australia Petroleum 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