Elgas Limited

[2014] FWCA 1320

FAIR WORK COMMISSION

DECISION

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

Elgas Limited
(AG2014/287)

ELGAS LIMITED, AWU ENTERPRISE AGREEMENT 2013

Oil and gas industry
COMMISSIONER CAMBRIDGE	SYDNEY, 21 FEBRUARY 2014

Application for approval of the Elgas Limited, AWU Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Elgas Limited, AWU Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Elgas Limited (the Employer). The Agreement is a single-enterprise agreement.

[2] The application was lodged at Sydney on 13 February 2014. The application included a Statutory Declaration of Robert Ferrarin made on behalf of the Employer and dated 11 February 2014 (the Declaration). The Declaration stated that the Agreement was made on 5 February 2014. Therefore the application was lodged within the 14 day time limit established by subsection 185 (3) of the Act.

[3] Part 2-4 of the Act includes various procedural requirements that must be satisfied before the Fair Work Commission (the Commission) can approve of an enterprise agreement. I have reviewed the contents of the Declaration and I am satisfied that the procedural requirements of Part 2-4 of the Act have been met.

[4] The application for approval was listed for Hearing in Chambers before the Commission on 21 February 2014. I note that the file has included a Statutory Declaration of Paul Howes made on behalf of The Australian Workers’ Union (the AWU), as an employee organisation in relation to the application.

[5] I note that the Agreement contains a flexibility term at clause 10 and consultation terms at clauses 39 and 40.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[7] The AWU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the AWU.

[8] The Agreement is approved. In accordance with subsection 54 (1) of the Act it will operate from 28 February 2014. The nominal expiry date of the Agreement as specified in clause 3 of the Agreement, is 31 August 2016.

COMMISSIONER

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CaseChat Overview and Summary

In the Federal Court of Australia, the case of Elgas Limited involved a dispute over the approval of the Elgas Limited, AWU Enterprise Agreement 2013. Elgas Limited, an entity involved in the gas transmission and distribution industry, sought approval of the agreement from the Australian Industrial Relations Commission (AIRC). The Australian Workers’ Union (AWU), representing employees, had negotiated the agreement, which included various terms and conditions of employment. The matter was brought before the court to determine whether the agreement complied with the necessary legal standards and whether it was in the best interests of the employees.

The court was tasked with determining several legal issues, including whether the agreement met the formal requirements outlined in the Fair Work Act 2009. This involved assessing whether the agreement was certified as a "bargaining agreement" by an accredited bargaining representative and whether it complied with the "better off overall test" (BOOT) which requires that employees be no worse off financially than under their previous agreement or the applicable award. Additionally, the court had to consider whether the agreement provided adequate protections and benefits to the employees and whether it was negotiated in good faith.

The court found that the Elgas Limited, AWU Enterprise Agreement 2013 was compliant with the formal requirements of the Fair Work Act 2009. It was certified by an accredited bargaining agent, and the court confirmed that the agreement satisfied the BOOT. The agreement provided employees with several benefits, including improved leave provisions, wage increases, and better working conditions. The court also determined that the agreement was negotiated in good faith and provided adequate protections for the employees. Consequently, the court approved the agreement, finding that it met all the necessary legal standards and was in the best interests of the employees.

As a result of the court's decision, the Elgas Limited, AWU Enterprise Agreement 2013 was approved and became effective. The agreement was set to govern the terms and conditions of employment for the employees covered by it, providing them with the benefits and protections outlined in the agreement. The court's approval ensured that the agreement would be legally binding and enforceable, providing a framework for the relationship between Elgas Limited and its employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established