DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Enerflex Service Pty Ltd
(AG2018/7409)

ENERFLEX SERVICE PTY LTD ENTERPRISE AGREEMENT 2018

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 18 FEBRUARY 2019

Application for approval of the Enerflex Service Pty Ltd Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Enerflex Service Pty Ltd Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Enerflex Service Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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.

[3] Subject to the undertakings referred to above, 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.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 11.7 - Casual employment.

• Clause 45 - Abandonment

However, noting the undertakings mentioned above, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 25 February 2019. The nominal expiry date of the Agreement is 30 March 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Enerflex Service Pty Ltd sought approval for an enterprise agreement that would regulate the employment conditions of its employees. The Fair Work Commission was tasked with determining whether the agreement met the legal requirements for approval under the Fair Work Act 2009. The company argued that the agreement contained appropriate terms and conditions that were necessary for the efficient operation of its business, while a union representing the employees contended that the agreement failed to adequately protect the rights and interests of the workforce.

The primary legal issue before the Commission was whether the enterprise agreement complied with the statutory provisions outlined in the Fair Work Act. This included assessing whether the agreement had been made in good faith, whether it contained only matters that were negotiable and not prohibited by law, and whether it provided for a minimum rate of pay that met or exceeded the relevant award or registered agreement. Additionally, the Commission considered whether the agreement satisfied the "better off overall test," meaning that the employees would be no worse off and at least some would be better off financially under the new agreement compared to their previous conditions.

In reaching its decision, the Commission evaluated the evidence and submissions presented by both parties. It found that the agreement had been negotiated in good faith and contained terms that were not prohibited by law. The Commission also determined that the agreement provided for a minimum rate of pay that met the legal requirements and satisfied the better off overall test for a majority of the employees. Consequently, the Commission approved the Enerflex Service Pty Ltd Enterprise Agreement 2018, concluding that it met all necessary legal criteria for endorsement.

The Commission's decision was made under the authority granted by section 173 of the Fair Work Act. The approval of the enterprise agreement means that it will now form the basis of employment conditions for the employees covered by the agreement, effective from the date of the Commission's decision.

Enerflex Service Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established