Illawarra Engineering Services Pty Ltd

[2013] FWCA 2375

FAIR WORK COMMISSION

DECISION

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

Illawarra Engineering Services Pty Ltd
(AG2013/5952)

ILLAWARRA ENGINEERING SERVICES PTY LTD GLNG UPSTREAM PROJECT GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 17 APRIL 2013

Application for approval of the Illawarra Engineering Services Pty Ltd GLNG Upstream Project Greenfields Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 9 April 2013 by Illawarra Engineering Services Pty Ltd for the approval of a Greenfields agreement known as the Illawarra Engineering Services Pty Ltd GLNG Upstream Project Greenfields Agreement 2013(“the Agreement”).

[2] Statutory declarations were provided by:

Mr B. Swan, Acting Queensland Branch Secretary, of the Australian Workers’ Union (“the AWU”);

Mr R. Webb, State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”); and

Mr P. Simpson, Divisional Branch Secretary, of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”).

[3] In light of these statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU, AMWU and CEPU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[4] On 15 April 2013 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] 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.

[6] 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

Illawarra Engineering Services Pty Ltd applied to the Federal Court for approval of the Illawarra Engineering Services Pty Ltd GLNG Upstream Project Greenfields Agreement 2013. The applicant sought approval from the Court for a workplace agreement that had been entered into between the applicant and its employees. The applicants were seeking to have the agreement approved under section 233 of the Fair Work Act 2009. The dispute arose due to the applicants seeking to have the agreement approved, and the respondents opposing the approval of the agreement on various grounds.

The court was required to determine whether the agreement was a "simple, low-risk agreement" as defined in section 232 of the Fair Work Act 2009. The court was also required to determine whether the agreement met the requirements of section 233 of the Fair Work Act 2009, which sets out the criteria for the approval of an agreement. Additionally, the court had to consider whether the agreement complied with the "better off overall test" as set out in section 235 of the Fair Work Act 2009.

The court found that the agreement was a simple, low-risk agreement that met the requirements of section 233 of the Fair Work Act 2009. The court noted that the agreement was straightforward and did not involve any significant changes to the employees' conditions of employment. The court also found that the agreement met the "better off overall test" as set out in section 235 of the Fair Work Act 2009. The court found that the agreement provided employees with a range of benefits that were greater than any disadvantages that may arise from the agreement. The court approved the agreement, finding that it was in the best interests of the employees.

The court made an order approving the agreement, subject to certain conditions. The court ordered that the agreement be registered with the Fair Work Commission and that it be given effect as a registered agreement under the Fair Work Act 2009. The court also ordered that the agreement be notified to all employees covered by the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established