Compass Group (Australia) Pty Ltd

[2021] FWCA 5999

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Compass Group (Australia) Pty Ltd
(AG2021/6885)

COMPASS GROUP & AUSTRALIAN WORKERS’ UNION - ESS OFFSHORE OIL & GAS (VICTORIA) ENTERPRISE AGREEMENT 2021

Oil and gas industry
DEPUTY PRESIDENT MANSINI	MELBOURNE, 27 SEPTEMBER 2021

Application for approval of the Compass Group & Australian Workers’ Union - ESS Offshore Oil & Gas (Victoria) Enterprise Agreement 2021.

[1] Compass Group (Australia) Pty Ltd has applied for approval of a single enterprise agreement known as the Compass Group & Australian Workers’ Union - ESS Offshore Oil & Gas (Victoria) Enterprise Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act).

[2] Since the application was made, the Commission raised concerns about whether the Agreement contravenes s.55 of the Act and whether the Agreement passes the “better off overall” test.

[3] Written undertakings were given in accordance with s.190 of the Act and are attached at Annexure A (Undertakings). The bargaining representatives either supported or did not oppose the Undertakings. 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. Pursuant to s.201(3) of the Act, the Undertakings are taken to be terms of the Agreement.

[4] Noting Undertaking 2 of the Undertakings, I am satisfied that the more beneficial entitlements of the National Employment Standards in the Act (NES) will prevail where there is an inconsistency between the Agreement and the NES.

[5] On the basis of the material contained in the application and the Undertakings, 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.

[6] The Australian Workers’ Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act. In accordance with s.201(2), I note that the Agreement covers this organisation.

[7] The Agreement was approved on 27 September 2021 and, in accordance with s.54, will operate from 4 October 2021. The nominal expiry date of the Agreement is 28 September 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Compass Group (Australia) Pty Ltd applied for the approval of the Compass Group & Australian Workers’ Union - ESS Offshore Oil & Gas (Victoria) Enterprise Agreement 2021. The dispute arose between Compass Group, an employer, and the Australian Workers’ Union, representing the employees. The commission was tasked with examining the fairness and compliance of the proposed agreement.

The legal issues before the commission included assessing whether the agreement met the statutory requirements for enterprise agreements under the Fair Work Act 2009, particularly focusing on its compliance with the "better off overall test" and its adherence to the provisions that ensure fairness in the workplace. The commission had to determine whether the agreement was genuinely negotiated and whether it provided fair terms for the employees.

After thorough examination, the commission found that the agreement met all necessary statutory requirements. The terms and conditions of the agreement were fair and reasonable, and it was evident that the agreement was genuinely negotiated between the parties. The commission concluded that the agreement would be beneficial to the employees, satisfying the "better off overall test." Therefore, the application for approval was successful.

The commission approved the Compass Group & Australian Workers’ Union - ESS Offshore Oil & Gas (Victoria) Enterprise Agreement 2021, effective from the date of the decision. This approval ensures that the agreement is legally binding between the parties and will govern the employment conditions for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established