DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Castrol Australia Pty Ltd
(AG2021/6088)

CASTROL & UWU PLANT OPERATORS AGREEMENT 2021

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 22 JULY 2021

Application for approval of the Castrol & UWU Plant Operators Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Castrol & UWU Plant Operators Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Castrol Australia Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 July 2021. The nominal expiry date of the Agreement is 30 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Castrol Australia Pty Ltd applied to the Fair Work Commission (FWC) for the approval of a new enterprise agreement, the Castrol & UWU Plant Operators Agreement 2021. The applicant argued that the agreement was in the best interests of the employees, particularly considering the exceptional circumstances posed by the COVID-19 pandemic. The union, United Workers Union (UWU), also supported the application. The Australian Manufacturing Workers' Union (AMWU) opposed the application, arguing that the agreement did not adequately protect employees' rights and conditions.

The primary legal issue before the FWC was whether the Castrol & UWU Plant Operators Agreement 2021 should be approved under the Fair Work Act 2009. This required the FWC to consider various factors, including whether the agreement would provide fair and better off overall for the employees, whether it complied with the good faith bargaining requirements, and whether it was in the best interests of the employees. The FWC had to balance the rights and interests of the parties, taking into account the economic and operational context, including the impact of the COVID-19 pandemic.

In its decision, the FWC acknowledged the challenging economic environment and the need for flexibility in enterprise agreements. The FWC found that the agreement provided reasonable protections for employees, including provisions for redundancy and job security, while also allowing for necessary flexibility in response to the pandemic. The FWC was satisfied that the agreement had been negotiated in good faith and that it was in the best interests of the employees overall. Consequently, the FWC approved the Castrol & UWU Plant Operators Agreement 2021, highlighting the importance of reaching a balance between the needs of the employer and the rights of the employees during these unprecedented times.

The final orders of the FWC included the approval of the Castrol & UWU Plant Operators Agreement 2021, effective from the date of the decision. The agreement was to be registered with the Fair Work Commission and would apply to the relevant employees until the next scheduled review or termination. The FWC's decision provided a framework for future negotiations and highlighted the importance of considering the broader economic context in the approval of enterprise agreements.

Castrol Australia 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