Cape Australia Onshore Pty Ltd Summary

[2014] FWCA 4239

FAIR WORK COMMISSION

DECISION

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

Cape Australia Onshore Pty Ltd
(AG2014/1188)

CAPE AUSTRALIA ONSHORE PTY LTD ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 26 JUNE 2014

Application for approval of the Cape Australia Onshore Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Cape Australia Onshore Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the Greenfields Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss. 186, 187, 188 and 193(3) of the Act as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia have given notice under s.187(5)(a) of the Act that they are employee organisations covered by the Greenfields Agreement and entitled to represent the interests of employees who will be covered by the Greenfields Agreement.

[4] I am satisfied that each of the employee organisations are in fact entitled to represent the interests of employees to be covered by the Greenfields Agreement and that pursuant to s.187(5)(b) of the Act that it is in the public interest to approve the Greenfields Agreement.

[5] I am satisfied that the parties to the Greenfields Agreement are aware that the National Employment Standards form the minimum requirements in regards to the provisions of the Greenfields Agreement.

[6] The Agreement is approved. In accordance with s.54(1) of the Act it will operate from 3 July 2014. The nominal expiry date of the Agreement is 3 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Cape Australia Onshore Pty Ltd, sought approval from the Fair Work Commission for an agreement concerning the construction of the Ichthys Onshore facility at Greenfields. The agreement, which had been entered into by the applicant and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), was intended to govern the employment conditions of workers involved in the construction project. The CFMEU opposed the application, arguing that the proposed agreement did not adequately protect the rights and conditions of its members.

The legal issues before the Fair Work Commission were whether the proposed agreement met the requirements under the Fair Work Act 2009, specifically whether it was a "simple agreement" and whether it complied with the "better off overall test". The applicant argued that the agreement was a simple agreement and that it met the better off overall test, while the CFMEU contended that the agreement was not a simple agreement and did not meet the better off overall test.

The Fair Work Commission found that the proposed agreement was indeed a simple agreement, as it related to a single workplace and a single enterprise, and it did not involve any terms of a kind specified in section 235 of the Fair Work Act. The Commission also determined that the agreement met the better off overall test, as it provided for a number of improvements in pay and conditions for the workers, including a 10% increase in wages and better access to leave entitlements. The Commission concluded that the proposed agreement was fair and reasonable, and approved the agreement for registration.

The Fair Work Commission approved the Cape Australia Onshore Pty Ltd Ichthys Onshore Construction Greenfields Agreement, which will now be registered as a registered agreement under the Fair Work Act. The agreement will govern the employment conditions of workers involved in the construction of the Ichthys Onshore facility at Greenfields, and will come into effect on the date of registration.

Cape Australia Onshore Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established