DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Compass Group (Australia) Pty Ltd T/A ESS Support Services Worldwide
(AG2015/220)

COMPASS GROUP & AWU - ESS OFFSHORE OIL & GAS (SHELL PRELUDE) GREENFIELDS AGREEMENT 2014

Hospitality industry
DEPUTY PRESIDENT KOVACIC	CANBERRA, 24 APRIL 2015

Application for approval of the Compass Group & AWU - ESS Offshore Oil & Gas (Shell Prelude) Greenfields Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Compass Group & AWU - ESS Offshore Oil & Gas (Shell Prelude) Greenfields Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Compass Group (Australia) Pty Ltd. The Agreement is a greenfields agreement.

[1] The Applicant 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.

[2] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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.

[3] Based on the statutory declaration provided by the organisation, I am satisfied that the Australian Workers’ Union (West Australian Branch), the employee organisation to be covered by the agreement, is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 May 2015. The nominal expiry date of the Agreement is 24 April 2019.

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application for the approval of a new enterprise agreement between Compass Group (Australia) Pty Ltd, trading as ESS Support Services Worldwide, and the Australian Workers' Union (AWU). The agreement, titled the Compass Group & AWU - ESS Offshore Oil & Gas (Shell Prelude) Greenfields Agreement 2014, sought to govern the terms and conditions of employment for workers in the offshore oil and gas sector, specifically for the Shell Prelude project. The primary dispute centred on whether the proposed agreement met the necessary requirements for approval under the Fair Work Act 2009.

The court had to determine several key legal issues, including whether the agreement was genuinely negotiated, if it met the "better off overall test" (BOOT), and if it included any provisions that were contrary to public policy or unfair. Additionally, the court examined whether the agreement contained appropriate dispute resolution mechanisms and if it adhered to the relevant provisions of the Fair Work Act and the National Workplace Relations Tribunal (FW Act). The central issue was whether the proposed agreement could be approved as a new enterprise agreement under the legislative framework.

The Fair Work Commission found that the agreement was genuinely negotiated between the parties, met the BOOT, and did not include any provisions that were contrary to public policy or unfair. The court noted that the agreement contained appropriate dispute resolution mechanisms and adhered to the relevant provisions of the Fair Work Act. The Commission also took into consideration the complexity of the work involved in the offshore oil and gas sector and the need for specific arrangements to ensure the safety and well-being of the employees. Ultimately, the court approved the agreement, acknowledging the need for tailored enterprise agreements in specialised industries such as offshore oil and gas.

Compass Group (Australia) Pty Ltd T/A ESS Support Services Worldwide

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established