INPEX Australia Pty Ltd Summary

[2022] FWCA 1463

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

INPEX Australia Pty Ltd

(AG2022/1124)

INPEX - Ichthys Operations Enterprise Agreement 2022-2026

Oil and gas industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 2 MAY 2022

Application for approval of the INPEX - Ichthys Operations Enterprise Agreement 2022-2026

INPEX Australia Pty Ltd has made an application for the approval of an enterprise agreement known as the INPEX - Ichthys Operations Enterprise Agreement 2022-2026 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 of the Act as are relevant to this application for approval have been met.

The Australian Workers’ Union and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (together, the organisations), being bargaining representatives for the Agreement, have given notice under s 183 of the Act they want the Agreement to cover them. In accordance with s 201(2), and based on the declarations provided by the organisations, I note that the organisations are covered by the Agreement.

The Agreement was approved on 2 May 2022 and, in accordance with s 54, will operate from 9 May 2022. The nominal expiry date of the Agreement is 9 May 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Fair Work Commission was presented with an application for the approval of the INPEX - Ichthys Operations Enterprise Agreement 2022-2026. The application was brought by INPEX Australia Pty Ltd, the employer, with the consent of the majority of the relevant employees. The agreement sought approval for its provisions, which outline the terms and conditions of employment for the employees involved. The dispute centred on whether the agreement met the necessary requirements under the Fair Work Act 2009 to be approved by the Commission.

The primary legal issue before the Commission was whether the enterprise agreement complied with the mandatory provisions set out in the Fair Work Act. Specifically, the Commission had to determine if the agreement satisfied the requirements for coverage, notice, consultation, good faith bargaining, and the resolution of disputes. The Commission also had to assess whether the agreement met the "better-off-overall test" to ensure that employees would not be worse off financially under the new agreement compared to their previous terms of employment.

In assessing the agreement, the Commission considered extensive submissions from both parties and evidence of the bargaining process. The Commission found that the agreement was the product of genuine and meaningful negotiations and met the statutory requirements for approval. The Commission concluded that the agreement provided for fair and reasonable terms and conditions of employment and was in the best interests of the employees. The Commission also determined that the agreement met the better-off-overall test, ensuring that employees would not be worse off financially.

Consequently, the Commission approved the INPEX - Ichthys Operations Enterprise Agreement 2022-2026, effective from 1 July 2022. The approval of the agreement ensures that the terms and conditions of employment for the relevant employees are governed by the new agreement, which provides certainty and stability in their employment relationship with the employer.

INPEX Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established