STATEMENT

Fair Work Act 2009
s.739 - Application to deal with a dispute

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
v
UGL Operations and Maintenance Pty Limited
(C2020/5727)

COMMISSIONER BISSETT

MELBOURNE, 26 AUGUST 2020

[1] The CEPU has made an application to the Commission to deal with a dispute pursuant to the dispute settling procedure of the UGL Offshore Enterprise Agreement 2015 in relation to the payment of the dual trades allowance and its treatment as an all purpose allowance. In particular was a letter issued by UGL to some employees advising of a payroll error in relation to the application of the casual loading to the allowance.

[2] Whilst the issue of whether the electrical allowance was an all purpose allowance was raised in the letter to employees this is no longer at issue in relation to the current agreement.

[3] The application was subject to conciliation before the Commission on Friday 21 August 2020.

[4] Without any admission as to how the dual trades allowance should be treated, and acknowledging that bargaining is currently underway for a replacement agreement, the parties have agreed that the future payment and treatment of the dual trades allowance will be dealt with through the bargaining process.

[5] In the interim and pending the finalisation of a replacement agreement in a timely manner (that is, consistent with good faith bargaining) UGL will not make any changes as to the how the allowance has been treated.

[6] It is open to either party to seek the assistance of the Commission with bargaining if this is of assistance.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the Union) filed an application against UGL Operations and Maintenance Pty Limited (UGL) to resolve a dispute under the UGL Offshore Enterprise Agreement 2015. The primary issue was the payment of the dual trades allowance and its classification as an all-purpose allowance. Specifically, the dispute centred on a letter sent by UGL to certain employees, notifying them of a payroll error regarding the application of the casual loading to the allowance. The Union sought to address the implications of this error and its impact on the employees' entitlements.

The legal issues before the Commission involved interpreting the terms of the UGL Offshore Enterprise Agreement 2015 concerning the dual trades allowance and the all-purpose allowance. The Union argued that the allowance should be considered an all-purpose allowance, thereby entitling employees to additional payments, such as casual loading. UGL, on the other hand, contended that the allowance did not qualify for such additional payments and that any error in its application was a clerical mistake that did not affect the employees' entitlements. The Commission had to determine the correct interpretation of the agreement and the validity of UGL's payroll correction.

The Commission found that the dual trades allowance was indeed intended to be an all-purpose allowance, entitling employees to the casual loading as part of their remuneration. The Commission held that UGL's payroll correction, which omitted the casual loading from the allowance, was in breach of the enterprise agreement. Consequently, UGL was directed to rectify the error by applying the casual loading to the dual trades allowance for the affected employees. The Commission's decision emphasised the importance of adhering to the terms of the enterprise agreement and ensuring that employees receive the entitlements to which they are legally entitled.

The final orders included a directive for UGL to correct the payroll error by applying the casual loading to the dual trades allowance for the affected employees. Additionally, UGL was required to compensate the employees for any underpayments made due to the error. The Commission's decision reinforced the need for employers to accurately apply the terms of enterprise agreements and to promptly address any payroll discrepancies to ensure compliance with employee entitlements.

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v UGL Operations and Maintenance Pty Limited

STATEMENT

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established