DECISION

Fair Work Act 2009
s.185—Enterprise agreement

EnerMech Pty Ltd
(AG2019/381)

ENERMECH PTY LIMITED NORTH WEST SHELF (PILBARA) ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 14 MAY 2019

Application for approval of the EnerMech Pty Limited North West Shelf (Pilbara) Enterprise Agreement 2018

[1] EnerMech Pty Ltd has made an application for approval of an enterprise agreement known as the EnerMech Pty Limited North West Shelf (Pilbara) Enterprise Agreement 2018 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). 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, 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.

[4] The Agreement was approved on 14 May 2019 and, in accordance with s 54, will operate from 21 May 2019. The nominal expiry date of the Agreement is 14 May 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, EnerMech Pty Ltd, sought approval of an enterprise agreement from the Fair Work Commission. The agreement, referred to as the EnerMech Pty Limited North West Shelf (Pilbara) Enterprise Agreement 2018, was intended to regulate the terms and conditions of employment for its employees working in the Pilbara region of Western Australia. The application was opposed by the applicant's employees and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), who raised concerns about certain provisions of the agreement.

The primary legal issue before the court was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. The court needed to determine if the agreement had been made in good faith, if it provided for the proper operation of enterprises, and if it met the criteria for being a "better off overall test" (BOOT) agreement. The court also needed to consider if the agreement provided for the resolution of disputes and if it had been made in accordance with the provisions of the Fair Work Act.

The Fair Work Commission held that the agreement had been made in good faith and met the criteria for approval under the Fair Work Act. The court found that the agreement provided for the proper operation of enterprises and that the parties had negotiated in a manner consistent with the principles of good faith. The court also found that the agreement met the BOOT criteria and provided for the resolution of disputes. The court was satisfied that the agreement had been made in accordance with the provisions of the Fair Work Act.

The Fair Work Commission approved the EnerMech Pty Limited North West Shelf (Pilbara) Enterprise Agreement 2018, subject to certain modifications to address the concerns raised by the employees and the CFMEU. The modifications included changes to the agreement's provisions relating to overtime, shift patterns, and the role of the CFMEU in the enterprise. The court noted that the modifications did not significantly alter the overall terms and conditions of the agreement and that the agreement remained a BOOT agreement.

EnerMech 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