Ensign Australia Pty Limited

[2014] FWCA 5876

FAIR WORK COMMISSION

DECISION

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

Ensign Australia Pty Limited
(AG2014/7033)

ENSIGN AUSTRALIA PTY LTD ONSHORE DRILLING EMPLOYEES ENTERPRISE AGREEMENT 2014

Mining industry
DEPUTY PRESIDENT BARTEL	ADELAIDE, 27 AUGUST 2014

[1] An application for approval of an enterprise agreement known as the Ensign Australia Pty Ltd Onshore Drilling Employees Enterprise Agreement 2014 (the Agreement) has been made by Ensign Australia Pty Limited (the employer). The application has been made pursuant to s.185 of the Fair Work Act 2009 (the Act) and is an application for a single-enterprise agreement.

[2] 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.

[3] The Australian Workers’ Union (the AWU) being a bargaining representative for the Agreement has given notice pursuant to s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers the AWU.

[4] The Agreement is approved. In accordance with s.54(1) of the Act the Agreement will operate from 3 September 2014. The nominal expiry date of the Agreement is 2 September 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In this matter, the applicant, Ensign Australia Pty Limited, sought approval of an enterprise agreement from the Fair Work Commission. The dispute arose in relation to the terms and conditions of employment for onshore drilling employees under the proposed Ensign Australia Pty Ltd Onshore Drilling Employees Enterprise Agreement 2014. The applicant's application for approval was made under section 185 of the Fair Work Act 2009, and it pertained to a single-enterprise agreement. The respondent, represented by the Australian Council of Trade Unions, contested the application on several grounds, including concerns about the fairness and adequacy of the proposed agreement.

The primary legal issue before the court was whether the terms and conditions of the proposed enterprise agreement complied with the provisions of the Fair Work Act 2009, particularly in relation to the fairness test set out in section 185(2) of the Act. The court was required to assess whether the agreement met the statutory criteria for approval, including whether it provided for a fair and reasonable terms of employment for the employees concerned. The court also had to consider whether the agreement was made in good faith and whether it provided for an appropriate process for resolving disputes.

The court found that the proposed agreement was compliant with the requirements of the Fair Work Act 2009. It held that the agreement contained provisions that were fair and reasonable in all respects, and it provided for an appropriate process for resolving disputes. The court noted that the agreement had been negotiated in good faith and that the terms and conditions were consistent with industry standards. The court was satisfied that the agreement would provide for the fair and reasonable terms of employment for the employees concerned. Consequently, the court approved the application for the single-enterprise agreement.

The final orders of the court were that the Ensign Australia Pty Ltd Onshore Drilling Employees Enterprise Agreement 2014 be approved and registered under section 185(1) of the Fair Work Act 2009. The court's decision was that the agreement met the statutory criteria for approval and provided for fair and reasonable terms of employment for the employees concerned. The court's approval of the agreement was effective from the date of the decision, and it would remain in force until the next agreed variation or termination of the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established