Compass Group (Australia) Pty Ltd

[2014] FWCA 2448

[2014] FWCA 2448

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s 185 - Application for approval of a single-enterprise agreement

Compass Group (Australia) Pty Ltd
(AG2014/700)

COMPASS GROUP - WOODSIDE FPSOS - ENTERPRISE AGREEMENT 2013

Hospitality industry
DEPUTY PRESIDENT SAMS	SYDNEY, 15 APRIL 2014

Application for approval of the Compass Group - Woodside FPSOs - Enterprise Agreement 2013.

[1] This is an application, pursuant to s 185 of the Fair Work Act 2009 (the ‘Act’), filed by Compass Group (Australia) Pty Ltd (the ‘applicant’) which seeks the approval of the Fair Work Commission (the ‘Commission’) of a single enterprise agreement to be known as the Compass Group - Woodside FPSOs - Enterprise Agreement 2013 (the ‘Agreement’). The Agreement was negotiated with the Maritime Union of Australia (the ‘Union’). The Agreement is to cover 46 employees who are engaged in the provision of catering services on Floating, Production, Storage and Offloading (FPSO) vessels, pursuant to a contract between the applicant and Woodside Energy Ltd. For the purposes of s 186(3) of the Act, I am satisfied that the group of employees to be covered by this Agreement has been fairly chosen.

[2] The employees were last notified of their representational rights on 18 May 2012, and voting for the Agreement’s approval took place between 7 and 14 March 2014. The time limits under s 181(2) of the Act are thereby satisfied. In a ballot, 36 of the 37 employees who cast a valid vote, agreed to approve the Agreement. The application for approval of the Agreement was lodged on 28 March 2014, thereby satisfying s 185(3) of the Act.

[3] In the Employer’s Declaration in support of the application (Form F17) Mr G Blyth, General Manager - Workplace Relations, identified the Hospitality Industry (General) Award 2010 [MA000009] and the Hydrocarbons & Gas (Production and Processing Employees) Award 2002 [AP820493] as the relevant reference instruments for the purposes of the Better Off Overall Test (the ‘BOOT’). Mr Blythsaid that the Agreement provides for a number of conditions that are in excess of, or are more beneficial than the terms of the relevant reference instruments and that there are no less beneficial terms. The Agreement provides for annualised salaries that are substantially higher than the wages, penalties and allowances under the references instruments, more generous superannuation entitlements and enhanced redundancy benefits. Rates of pay are to be increased by 3% on 1 July 2013, 1 July 2014 and 1 July 2015. I am satisfied that the Agreement passes the BOOT. The Agreement provides for the mandatory consultation term at clauses 33, and a disputes resolution procedure at clause 22 provides for conciliation and arbitration by the Commission. Clause 36 sets out that the model flexibility clause applies as a term of this Agreement. The model clause is annexed to the Agreement.

[4] At a hearing of the application on 10 April 2014, Mr G Blyth appeared for the applicant and Mr B Farrelly for the Union. The Union had filed a Declaration in relation to the application (Form 18) supporting the approval of the Agreement and giving notice that it wishes to be covered by the Agreement (s 183). For the purposes of s 201(2) of the Act, I note that the Union is to be covered by the Agreement. Mr Blyth outlined the main features of the Agreement and submitted that all of the legislative requirements for approval of the Agreement have been satisfied and the Agreement should be approved by the Commission. He explained that the Agreement was based on one which had applied on the FPSO vessel, Nganhurra. At the time that that enterprise agreement was made, it was the only FPSO vessel on which the applicant had operations with Woodside. Subsequently, other vessels have become part of the applicant’s operations with Woodside and the parties had agreed that the employees working in these operations should be covered by a single enterprise agreement. Mr Farrelly supported the submissions of Mr Blyth.

[5] Having heard the parties’ submissions and upon reviewing the terms of the preapproval process documentation and the Agreement itself, I am satisfied that all of the requirements of the Act, in particular ss 180, 186, 187 and 188, in so far as relevant to this application, have been met. Accordingly, I approve a single enterprise agreement known as the Compass Group - Woodside FPSOs - Enterprise Agreement 2013. Pursuant to s 54 of the Act, the Agreement shall operate from 17 April 2014 and have a nominal expiry date of 1 December 2015.

DEPUTY PRESIDENT

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