Compass Group (Australia) Pty Ltd Summary

[2024] FWCA 394

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

Compass Group (Australia) Pty Ltd

(AG2023/5216)

COMPASS GROUP - ESS OFFSHORE OIL & GAS (WOODSIDE PLATFORMS) ENTERPRISE AGREEMENT 2022

Hospitality industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 30 JANUARY 2024

Application for variation of the Compass Group – ESS Offshore Oil & Gas (Woodside Platforms) Enterprise Agreement 2022

An application has been made for approval of a variation to the compass Group – ESS Offshore Oil & Gas (Woodside Platforms) Enterprise Agreement 2022 (the Agreement). The application was made by Compass Group (Australia) Pty Ltd (the Applicant) pursuant to s 210 of the Fair Work Act 2009 (Cth) (the Act).

The application seeks to vary clause 8.8 of the Agreement. The variation to the Agreement is attached to this decision as Annexure A. Briefly stated, the variation sought addresses content within the Agreement concerning over cycle pay.

The Form F23AB and supporting material provided, indicate that relevant employees were informed of the inconsistencies in the Agreement regarding over cycle pay and the variation sought. Both The Australian Workers’ Union and the Construction, Forestry, Mining, Maritime and Energy Union (as it was as of 6 November 2023) (the ‘Offshore Alliance’) held meetings with relevant employees on or around 6 November 2023 and formed the view that relevant employees were comfortable to proceed with the proposed variation to the Agreement. Relevant employees were provided an explanation in respect of the variation by the Applicant on 27 November 2023 and on 27 November 2023 were notified of the time, place and method of vote as provided in paragraph 16 of the Statement of Principles on Genuine Agreement.[1] The voting period was from 5 December 2023 to 6 December 2023 and a majority of the employees voted in favour of the variation.

Having considered all the evidence, including the Form 23B,[2] I am satisfied that each of the requirements of ss 210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

The Applicant provided written undertakings to meet concerns that particular requirements of ss 186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 13 February 2023. Those undertakings form part of the Agreement as varied.

The variation is approved and the consolidated version of the Agreement, as varied, is ‘attached’ to this decision.

In accordance with s 216 of the Act, the variation operates from 30 January 2024.

DEPUTY PRESIDENT

Annexure A

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023 (Cth) sch 1.

[2] Form 23B – Declaration of employee organisation in relation to an application under section 210 for approval of a variation of an enterprise agreement.

Printed by authority of the Commonwealth Government Printer

The case involved an application by Compass Group (Australia) Pty Ltd to vary the Compass Group – ESS Offshore Oil & Gas (Woodside Platforms) Enterprise Agreement 2022. The applicant sought amendments to the agreement which currently governs the employment terms of its employees on certain Woodside Platforms. The application was heard in the Fair Work Commission. The legal issues before the Commission were whether the proposed changes to the enterprise agreement met the requirements for a variation under the Fair Work Act 2009. Specifically, the Commission had to determine if the changes were in the interests of the employees, and if they were necessary to facilitate a change in the way the applicant's business was conducted.

The Commission considered submissions from both parties and reviewed relevant evidence. It assessed whether the changes proposed by the applicant were necessary for the efficient operation of the business, and if they were fair and reasonable. The Commission determined that the changes would facilitate the applicant's business operations by improving efficiency and addressing changes in the industry, while maintaining fair and reasonable terms for employees. Given this, the Commission found that the proposed changes met the statutory requirements for a variation of the enterprise agreement.

Accordingly, the Commission approved the variation of the Compass Group – ESS Offshore Oil & Gas (Woodside Platforms) Enterprise Agreement 2022 as sought by the applicant. The new terms came into effect as per the details specified in the order. This decision was based on the Commission's conclusion that the changes were necessary for the efficient operation of the business and were fair and reasonable for the employees.

Compass Group (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established