Cryoperl Australia Pty Ltd

Case

[2016] FWCA 2829

13 May 2016

No judgment structure available for this case.

[2016] FWCA 2829

FURTHER DECISION

Fair Work Act 2009
s. 602 – Application to correct or amend
Cryoperl Australia Pty Ltd
(AG2016/2369)

CRYOPERL AUSTRALIA PTY LTD WHEATSTONE PROJECT

AGREEMENT 2016

Building, metal and civil construction industries

COMMISSIONER GREGORY MELBOURNE, 13 MAY 2016

Application for approval of the Cryoperl Australia Pty Ltd Wheatstone Project Agreement

2016.

[1]        This decision deals with an application by Cryoperl Australia Pty Ltd (“Cryoperl”)

under s.602 of the Fair Work Act 2009 (Cth) (“the Act”) seeking amendments to correct

obvious errors and omissions in relation to the Cryoperl Australia Pty Ltd Wheatstone Project

Agreement 2016, which was approved by the Commission with undertakings on 7 March

2016.

[2]        The Employer’s Statutory Declaration provided by the Site Manager, Mr James

Keane, at the time the application was made to approve the Agreement indicated that only 4

employees are covered by the proposed Agreement.

[3] As indicated, Cryoperl now makes application under s.602 “seeking to correct or

amend obvious errors, defects or irregularities in the Agreement.”

[4]        The errors/omissions arise from the failure to correctly state in the Agreement the rates

of pay and allowances that are intended to apply at the project site under the terms of the

Agreement. Those pay rates and allowances are intended to replicate those contained in the

overall Site Agreement. However, the terms of the Agreement currently fail to make clear that

the commencement rate of pay and allowances are not intended to apply until 1 September

2016, and the increases in those rates, which is now stated in the Agreement to apply from 1

February 2017, are not to apply until 1 September 2017.

[5]        Cryoperl accordingly submits the rates of pay and allowances now in the Agreement

do not reflect the intended agreement of the parties and this has been caused by “a simple

administrative error.”

[6] Cryoperl has also provided the Commission with copies of correspondence from each

of the 4 employees covered by the Agreement confirming their understanding that the rates of
[2016] FWCA 2829

pay and allowances in the Agreement were intended to be the same as those applying in the

overall Site Agreement, and confirming their agreement to correct the errors in the Agreement

to confirm that this is, in fact, the case.

[7] Section 602 of the Fair Work Act states:

“602 Correcting obvious errors etc. in relation to the FWC’s decisions

(1) The FWC may correct or amend any obvious error, defect or irregularity (whether

in substance or form) in relation to a decision of the FWC (other than an error, defect

or irregularity in a modern award or national minimum wage order).

Note 1: If the FWC makes a decision to make an instrument, the FWC may correct etc.

the instrument under this section (see subsection 598(2)).

Note 2: The FWC corrects modern awards and national minimum wage orders under

sections 160 and 296.

(1) The FWC may correct or amend the error, defect or irregularity:

(a) on its own initiative; or

i

(b) on application.”

[8] Section 598(2) of the Act also relevantly states:

“(2) If the FWC makes a decision that makes or varies an instrument, a reference in this

Part to a decision of the FWC includes the FWC’s decision to make or vary the

instrument in the particular terms decided.”

[9]        The Full Bench also determined in the matter of Fair Work Australia v Schweppes

Australia Pty Ltd & Anor:

“…the power under s.602 is not confined to errors made by the Tribunal but could

extend to obvious errors made by the parties reflected in instruments the Tribunal

ii

makes.”

[10]      I am accordingly satisfied that the Commission has the power to amend the Agreement

under s.602 of the Act in the manner proposed in the present application. After considering

the application and the materials provided in support, as well as the nature of the changes

proposed, I am therefore prepared to make an order amending the Agreement in the terms

proposed by the Applicant.

[11]      Those changes are as follows.

 The wage rates and classification structure set out in sub clause 9(1) in section 2 of the

Agreement under the heading “Civil/Structural” are replaced by the following:

[2016] FWCA 2829

Transition $ $ $

Level

Group 01/09/2015 01/09/2016 01/09/2017
1 45.32 47.87 50.57
CW1 2 45.57 48.00 50.57
3 45.94 48.20 50.57
1 46.66 49.51 52.54
CW2 2 47.28 49.84 52.54
3 47.65 50.03 52.54
1 48.77 51.66 54.72
CW3 2 49.14 51.86 54.72
3 49.64 52.12 54.72
1 50.26 53.23 56.37
CW4
2 50.75 53.49 56.37
CW5 1 51.87 54.86 58.01
CW6 1 53.61 56.55 59.65
The wage rates and classification structure set out in sub clause 9(1) in section 2 of the
Agreement under the subheading “Trade and Technical Classifications” are deleted
and replaced by the following:
$ $ $
01/09/2015 01/09/2016 01/09/2017

Extra Low Voltage Installer/

47.65 50.03 52.54

Communication Technician

Mechanical Fitter

Welder

Pipe Fitter

Boilermaker

Mechanical Fitter

Carpenter

Painter 49.64 52.12 54.72
Refractory Tradesperson
Sheetmetal Worker (1st class)
Sprinkler Plumber
Communications
Tradesperson Tradesperson-
other

[2016] FWCA 2829

Electrical Fitter

Electrical Installer

Electrical Mechanic

Licensed Plumber 52.12 54.73 57.47
Welder Special Class
Mechanical Tradesperson
Special Class
Non Destructive Testing
Technical
Officer (or Non Destructive
Technician
Level 3 as defined by AS
399819992) 54.61 57.34 60.20
Electrician Special Class*
Instrument Electrical Grade
1* Instrument Tradesperson
Instrument and Controls
Tradesperson
57.09 59.94 62.94

Electronics Tradesperson*

The wage rates and classification structure set out in sub clause 9(1) in section 2 of the
Agreement under the heading “Crane Classifications” are deleted and replaced by the
following:
Classifications $ $ $
01/09/2015 01/09/2016 01/09/2017

Mobile Crane

45.32 47.87 50.57

Driver (Hiab)

Mobile Crane

operator - mobile

cranes with lifting

50.26 53.23 56.37

capacity up to and

including

15 tonnes

[2016] FWCA 2829

Classifications $ $ $
01/09/2015 01/09/2016 01/09/2017

Mobile Crane

Operator - mobile

crane with a

lifting capacity in

51.87 54.86 58.01

excess of 15

tonnes and up to

and including 100

tonnes

Mobile Crane

Operator - mobile

crane with a

lifting capacity in

53.61 56.55 59.65

excess of 100

tonnes and up to

and including 180

tonnes

Mobile crane

operator- mobile

crane with a

lifting capacity in

55.35 58.24 61.29

excess of 180

tonnes and up to

and including 260

tonnes

Tower crane

55.35 58.24 61.29

operator

Operates a crane

with lifting

57.08 59.94 62.93

capacity in excess

of 260 tonnes

The Site Allowances set out in clause 10 of the Agreement are deleted and replaced by
the following:
$ $ $
01/09/2015 01/09/2016 01/09/2017
8.31 8.73 9.17

[2016] FWCA 2829

The Leading Hand Allowances set out in clause 11(1) of the Agreement are deleted
and replaced by the following:
$ $ $

If placed in charge of

01/09/2015 01/09/2016 01/09/2017
up to three other 35.60 37.78 39.25
employees
Three and not more
75.23 78.99 82.94
than seven other
employees
More than seven other 124.10 130.31 136.82
employees

 The First Aid Allowances set out in clause 12 of the Agreement are deleted and

replaced by the following:

$ $ $
01/09/2015 01/09/2016 01/09/2017
4.96 5.21 5.47

 The provisions in respect of Income Protection Insurance contained in sub clause

14(1)(a)(i) of the Agreement are deleted and replaced by the following:

$ $ $
01/09/2015 01/09/2016 01/09/2017
2,800 2,875 2,950
The following provisions contained in Appendix 2 of the Agreement are deleted and
replaced by the following:
PRE-HEATED WORK ALLOWANCE
(2) An Employee who is required to perform work on pre-heated steel at temperatures

between 100° Celsius to 150° Celsius within tarpaulin shelters shall be paid, in

addition to any other allowances to which he/she is entitled, a special payment in

accordance with the table below whilst engaged on such work. This is a flat hourly

payment.

[2016] FWCA 2829

$ $ $
01/09/2015 01/09/2016 01/09/2017
0.97 1.02 1.07

WORKING WITHIN PIPES, PILES AND PRESSURE VESSELS

(3) With the exception of refractory and welding work, an Employee who is required

to perform work within pipes or piles or in pressure vessels or beneath the annular

ring or between the outer and inner walls of an LNG or propane tank shall be paid

in addition to any other allowances to which he/she is entitled, a special payment

in accordance with the table below while engaged on such work. This is a flat

hourly payment

$ $ $
01/09/2015 01/09/2016 01/09/2017
3.63 3.82 4.01

(4) An Employee required to perform welding work inside pipes or piles or pressure

vessels or beneath the annular ring or between the outer and inner walls of an LNG

or propane tank shall be paid an allowance in accordance with the table below

while engaged on such work. This is a flat hourly payment

$ $ $
01/09/2015 01/09/2016 01/09/2017
6.31 6.62 6.96

WELDING ALLOWANCES

(5) When employed by the Company to carry out the full range of duties involved in

welding work as specified hereunder, a welder special class shall in consideration

for the work they are required to carry out on site, be paid the applicable weekly

all purpose allowance specified hereunder in addition to the wage to which they

are otherwise entitled under their contract of employment. These allowances shall

only apply from the time the Employee concerned has commenced work on the

Site and has passed the tests required and qualified at the levels set out below.

These allowances shall not apply to Employees engaged on tack welding and are

not cumulative. Only the highest allowance that each Employee has been tested to

and assessed as competent shall apply.

a. If engaged on arc welding of structural steel to AS1554SP - Welding of

Steel Structures (or similar standard).

[2016] FWCA 2829

$ $ $
01/09/2015 01/09/2016 01/09/2017
32.75 34.38 36.10
b. If engaged on welding of carbon steel pipework, to ASME B-31-3

standard or pressure vessels to AS1210.

$ $ $
01/09/2015 01/09/2016 01/09/2017
66.29 69.61 73.09
c. If engaged on welding allow pipework to ASME B-31-3 standard or 9%

nickel steel welding on LNG tanks to either API 620 or API 650 standard,

or allow pressure vessels and tanks to AS1210, API620 or API650

standard consisting of the following materials:

i.Stainless steel (304, 310, 316 and 904 grade); and

ii.Chrome molybdenum.

iii.Aluminium

$ $ $
01/09/2015 01/09/2016 01/09/2017
95.76 100.55 105.57
d. If engaged on welding any type of pipework to ASME B-31-3 standard

using FCAW or TGAX welding processes:

$ $ $
01/09/2015 01/09/2016 01/09/2017
162.03 170.13 178.63

ELECTRICAL LICENCE ALLOWANCE

(8) A tradesperson who holds, and in the course of their employment may be required

to use, a current "A" Grade or "B" Grade licence issued pursuant to the Electricity

(Licensing) Regulations 1991 shall be paid an hourly all purpose allowance in

accordance with the table below.

[2016] FWCA 2829

$ $ $
01/09/2015 01/09/2016 01/09/2017
2.67 2.81 2.95

(9) An employee working on a full time basis as a trades assistant assisting a

tradesperson holding an A or B grade Electrical Licence working for an electrical

contractor licensed under the Electricity Act 1945 and normally respondent to the

Electrical Contracting Industry Award R22 or 1978, shall be paid an hourly all

purpose allowance in accordance with the table below.

$ $ $
01/09/2015 01/09/2016 01/09/2017
1.29 1.35 1.42
(10) An employee who is engaged at Tradesperson level or higher, holding a

current tradesperson certificate or tradespersons rights recognition who is required

to perform the full range of duties of a Tradesperson, shall be paid an hourly all

purpose allowance in accordance with the table below:

$ $ $
01/09/2015 01/09/2016 01/09/2017
2.07 2.17 2.28

TUNNELING ENTITLEMENTS

(11) The following allowances are applicable only to the microtunnelling operation

of the Company. For clarification, the provisions of paragraphs 3 and 4 of this

appendix have no application to the tunneling construction.

a. COMPRESSED AIR ALLOWANCE -Employees directly engaged in

tunneling construction who work in compressed air shall be paid a flat hourly

allowance for each hour worked and spent in compression and decompression,

in accordance with the table below while engaged on such work:

[2016] FWCA 2829

Gauge $ $ $
reading 01/09/2015 01/09/2016 01/09/2017
1.52 1.60 1.68

0 to 35 kPA

Over 35 and 1.91 2.00 2.10
up to 65 kPA
Over 65 and
3.87 4.06 4.26
up to 100
kPA
Over 100 and
7.68 8.07 8.47
up to 170
kPA
Over 170 and
12.79 13.43 14.10
up to 225
kPA
Over 225 and
24.52 25.74 27.03
up to 275
kPA
b. TUNNELING ALLOWANCE -Employees directly engaged in tunneling

construction shall be paid a daily flat allowance for each day or shift

worked, in accordance with the table below while engaged on such work.

$ $ $
01/09/2015 01/09/2016 01/09/2017
21.82 22.91 24.06

 The provisions concerning the Local Living Subsidy in Appendix 4(2)(a) are deleted

and replaced by the following:

LOCAL LIVING SUBSIDY

(2) (a) Local Workers who are engaged to work the Project Working Hours will be

paid a flat weekly local living subsidy which shall be paid in lieu of any other

payment made in respect of location, living and accommodation related expenses.

$ $ $
01/09/2015 01/09/2016 01/09/2017
490 510 540

[2016] FWCA 2829

[12]      An Order to this effect will be issued in conjunction with this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

<Price code C, AE418115 PR580052>

i

Fair Work Act 2009 (Cth) at s.602

ii

Ibid at [348]

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