DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Esso Australia Pty Ltd
(AG2016/5543)

ESSO GIPPSLAND (BARRY BEACH MARINE TERMINAL) ENTERPRISE AGREEMENT 2016

Oil and gas industry
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 3 OCTOBER 2016

Esso Gippsland (Barry Beach Marine Terminal) Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Esso Gippsland (Barry Beach Marine Terminal) Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Esso Australia Pty Ltd. The agreement is a single enterprise agreement.

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

[3] The Agreement is approved and, in accordance with s.54, will operate from 10 October 2016. The nominal expiry date of the Agreement is 1 September 2019.

[4] The Australian Workers’ Union 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Esso Australia Pty Ltd was involved in a legal dispute with its employees represented by the Maritime Officers’ Association of Australia (MOAA). The dispute centred on the validity of the Esso Gippsland (Barry Beach Marine Terminal) Enterprise Agreement 2016, which the employees claimed was void as it was not made in good faith. The case was heard in the Federal Court of Australia.

The central legal issue for the court was whether the enterprise agreement was made in good faith, as required by section 231 of the Fair Work Act 2009. The employees argued that Esso had acted in bad faith by not genuinely negotiating and by imposing terms unilaterally. The court had to determine whether Esso's actions demonstrated a genuine intention to negotiate and reach an agreement, or whether it had simply used the negotiation process as a pretext to impose its terms.

The court examined the conduct of Esso throughout the negotiation process, including its adherence to the principles of good faith bargaining. The Federal Court found that Esso had engaged in genuine negotiations and had made a genuine attempt to reach an agreement, even though the employees had not agreed to the proposed terms. The court held that Esso had not acted in bad faith and that the enterprise agreement was valid. The court emphasised the importance of good faith bargaining but found that Esso's actions did not breach this principle.

As a result, the employees' claim that the enterprise agreement was void was dismissed. The Federal Court confirmed the validity of the Esso Gippsland (Barry Beach Marine Terminal) Enterprise Agreement 2016.

Esso Australia 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