Castrol Australia Pty Ltd

[2024] FWCA 3779

[2024] FWCA 3779

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Castrol Australia Pty Ltd

(AG2024/3731)

CASTROL & UWU PLANT OPERATORS AGREEMENT 2024

Oil and gas industry
COMMISSIONER PLATT	ADELAIDE, 31 OCTOBER 2024

Application for approval of the Castrol & UWU Plant Operators Agreement 2024

1. An application has been made for approval of an enterprise agreement known as the Castrol & UWU Plant Operators Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Castrol Australia Pty Ltd (the Applicant). The agreement is a single enterprise agreement.

1. The matter was allocated to my Chambers on 18 October 2024.

1. On 22 October 2024, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

1. There are three National Employment Standard (NES) issues that require comment:

·  Part C – Clause 1.1 states that employees shall work a minimum of 80 ordinary hours per fortnight which averages to 40 hours per week. This is inconsistent with s.62 of the Act provides for no more than 40 ordinary hours worked per week.

·  Part E – Clause 3 provides for compassionate leave where a member of an employee’s immediate family or household contracts or develops a serious illness or sustains a serious injury or dies however it is silent in relation to compassionate leave for stillbirth/miscarriage which is provided by s.104(1)(b) and (c) of the Act.

·  Part B – Clause 18 states that redundancy provisions will be in accordance with the BP redundancy policy. The retrenchment policy provides that employees who join the company after 1 January 2003 will be paid 3 weeks salary for each year of pro-rated service. This appears to be less than the NES entitlements for employees with more than 1 year of service but less than 2 as per s.119 of the Act.

1. Clause 6.1 of the Agreement acts as an effective NES precedence clause. As a result, the above clauses will not apply to the extent they are inconsistent with the NES.

1. The Applicant has submitted an undertaking in the required form dated 24 October 2024. The undertaking deals with the following topics:

·  Despite there being two shiftworker definitions, the definition in Part E, Clause 1.10.1 will be applicable and amended as follows:

1.10.1 For the purposes of the additional week of annual leave as provided for in the National Employment Standards, a shift worker is a worker who is regularly rostered to work on a seven day roster, and is regularly rostered to work on Sunday and Public Holidays.

·  In addition to Part B, Clause 11, the Dispute Resolution Procedure will include the following provision:

A party to the dispute may appoint a person, organisation or association to support an/or represent them in any discussion or process under Part B – clause 11.

·  In respect of better off overall issues relating to annualised pay, the Applicant has provided a system consistent with that in Shop, Distributive and Allied Association v Beechworth Bakery Employee Co Pty Ltd T/A Beechworth Bakery.[1]

1. A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

1. The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

1. The United Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers this organisation.

1. I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 June 2028.

COMMISSIONER

[1] [2017] FWCFB 1664

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