Flo-Max (Australia) P/L

[2014] FWCA 959

FAIR WORK COMMISSION

DECISION

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

Flo-Max (Australia) P/L
(AG2014/3555)

FLO-MAX AUSTRALIA PTY LTD GLNG UPSTREAM PROJECT ENTERPRISE AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 11 FEBRUARY 2014

Application for approval of the Flo-Max Australia Pty Ltd GLNG Upstream Project Enterprise Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 3 February 2014 by Flo-Max (Australia) P/L for the approval of a single-enterprise agreement known as the Flo-Max Australia Pty Ltd GLNG Upstream Project Enterprise Agreement 2013 (“the Agreement”).

[2] On 10 February 2014 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[3] In light of the Employer’s undertaking, 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.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the applicant, Flo-Max (Australia) Pty Ltd, sought approval of an enterprise agreement that would govern the terms and conditions of employment for its employees. The applicant, a provider of industrial services to the gas industry, proposed the Flo-Max Australia Pty Ltd GLNG Upstream Project Enterprise Agreement 2013. The dispute centred on whether the proposed agreement met the requirements of the Fair Work Act 2009, specifically concerning its compliance with the good faith bargaining provisions and whether it provided for fair and reasonable terms and conditions of employment.

The court was tasked with determining if the agreement was made in good faith, whether it contained terms and conditions that were fair and reasonable, and if it adhered to the procedural requirements set out in the Fair Work Act. The primary concern was the process through which the agreement was negotiated and the extent to which both parties had engaged in genuine discussions aimed at reaching a consensus. Additionally, the court had to consider if the proposed terms and conditions were equitable, taking into account industry standards and the economic context of the gas industry.

The Fair Work Commission found that the applicant had engaged in good faith bargaining, as evidenced by the negotiations and the willingness of both parties to reach a consensus. The commission also concluded that the terms and conditions proposed in the agreement were fair and reasonable, taking into account the specific circumstances of the industry and the bargaining process. Consequently, the court approved the Flo-Max Australia Pty Ltd GLNG Upstream Project Enterprise Agreement 2013, recognising it as compliant with the legislative requirements and appropriate for the industry context.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established