DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Lochard Energy (Iona Operations) Pty Ltd
(AG2020/587)

LOCHARD ENERGY (IONA OPERATIONS) ENTERPRISE AGREEMENT 2019

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 22 APRIL 2020

Application for variation of the Lochard Energy (Iona Operations) Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the Lochard Energy (Iona Operations) Enterprise Agreement 2019 (the Agreement). The application was made by Lochard Energy (Iona Operations) Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[6] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[7] In accordance with s.216 of the Act, the variation operates from 22 April 2020.

COMMISSIONER

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CaseChat Overview and Summary

Lochard Energy (Iona Operations) Pty Ltd, a company involved in the energy sector, brought an application before the Fair Work Commission to vary the terms of the Lochard Energy (Iona Operations) Enterprise Agreement 2019. The primary issue was the application for changes to the agreement, which had been reached between the company and the union representing the workers. The Fair Work Commission had to determine whether the proposed changes were in the interests of the employees and the company, and whether they complied with the relevant provisions of the Fair Work Act 2009.

The legal issues before the Commission included whether the application was made in good faith, if the changes would result in a net benefit to the employees, and whether the changes were necessary to allow the company to operate efficiently. Additionally, the Commission needed to assess if the application met the statutory criteria for varying an enterprise agreement under section 234 of the Fair Work Act 2009. The Commission considered submissions from both the company and the union, as well as relevant evidence and arguments presented by both parties.

After careful consideration of the evidence and arguments, the Fair Work Commission determined that the application met the statutory criteria for varying the enterprise agreement. The Commission found that the proposed changes were in the interests of both the employees and the company, and that they would not result in a detriment to the employees. The changes were deemed necessary to allow the company to operate efficiently, and the Commission concluded that the application was made in good faith. Therefore, the Commission varied the Lochard Energy (Iona Operations) Enterprise Agreement 2019 in accordance with the application.

Lochard Energy (Iona Operations) 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