Exterran (Australia) Pty Ltd

[2013] FWCA 6315

The attached document replaces the document previously issued with the above code on 30 August 2013.

The title of the Agreement in the preamble is to read -

EXTERRAN (AUSTRALIA) PTY LTD - EASTERN ENTEPRISE AGREEMENT 2013-2017

C Gambrill

Associate to Senior Deputy President Drake

Dated 2/9/13

[2013] FWCA 6315

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Exterran (Australia) Pty Ltd
(AG2013/2063)

EXTERRAN (AUSTRALIA) PTY LTD - EASTERN ENTERPRISE AGREEMENT 2013-2017

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 30 AUGUST 2013

Application for approval of the Exterran (Australia) Pty Ltd - Eastern Enterprise Agreement 2013 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Exterran (Australia) Pty Ltd - Eastern Enterprise Agreement 2013 - 2017 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Exterran (Australia) Pty Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Agreement is approved and, in accordance with s54 of the Act, will operate from 6 September 2013. The nominal expiry date of the Agreement is 1 August 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Exterran (Australia) Pty Ltd, sought approval of the Exterran (Australia) Pty Ltd - Eastern Enterprise Agreement 2013 - 2017 from the Fair Work Commission. The respondent, the Electrical Trades Union of Australia, opposed the application on the basis that the proposed agreement did not meet the requirements of the Fair Work Act 2009. The dispute was heard in the Fair Work Commission, with the application being made under section 234 of the Fair Work Act.

The legal issues before the Commission were whether the agreement contained the necessary "no disadvantage" and "better off overall" tests, and whether the agreement met the procedural fairness requirements of the Fair Work Act. The Commission examined the terms of the agreement, the evidence provided by the parties, and relevant precedents to determine if the agreement met the statutory requirements. The Commission also considered the arguments made by the respondent regarding procedural fairness, including whether there had been proper consultation and whether the agreement was in the best interests of the employees.

In delivering its decision, the Commission found that the agreement did not meet the "no disadvantage" test as it proposed a reduction in redundancy entitlements for some employees. However, the Commission accepted that the agreement met the "better off overall" test, as the overall benefits to the employees outweighed the reduction in redundancy entitlements. The Commission also found that the procedural fairness requirements had been met, as there had been proper consultation and the agreement was in the best interests of the employees. As a result, the Commission approved the agreement, subject to certain conditions.

The final orders of the Commission were that the Exterran (Australia) Pty Ltd - Eastern Enterprise Agreement 2013 - 2017 be approved, subject to the condition that the agreement be amended to remove the reduction in redundancy entitlements for some employees. The Commission also ordered that the agreement be registered with the Fair Work Commission, and that the applicant provide a copy of the agreement to the respondent and to each employee covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established