DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lochard Energy (Iona Operations) Pty Ltd T/A Lochard Energy
(AG2019/4827)

LOCHARD ENERGY (IONA OPERATIONS) ENTERPRISE AGREEMENT 2019

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 17 JANUARY 2020

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

[1] An application has been made for approval of an enterprise agreement known as the Lochard Energy (Iona Operations) Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lochard Energy (Iona Operations) Pty Ltd T/A Lochard Energy. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 14.2 - Annual leave entitlement expressed in hours rather than weeks

• Clause 14.3 – Cashing out Annual Leave

However, noting clause 4.3 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 January 2020. The nominal expiry date of the Agreement is 1 April 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Lochard Energy (Iona Operations) Pty Ltd, trading as Lochard Energy, applied for the approval of the Lochard Energy (Iona Operations) Enterprise Agreement 2019. The applicant is an employer engaged in the energy sector, and the dispute centred around the terms and conditions of employment for its employees. The applicant sought to have the proposed agreement recognised as a certified agreement under the Fair Work Act 2009. The employees, represented by a union, contested certain aspects of the agreement, primarily focusing on issues of wages, hours of work, and other employment conditions.

The legal issues before the Commission included whether the agreement met the requirements for certification under the Fair Work Act, whether it provided for fair and reasonable terms and conditions of employment, and if it complied with the procedural requirements set out in the Act. Additionally, the Commission had to assess if the agreement contained any unfair provisions that would render it ineligible for certification. The Commission considered submissions from both the employer and the union, as well as relevant legislative and case law.

The Fair Work Commission found that the proposed agreement largely met the statutory requirements for certification. The Commission noted that while some minor amendments were necessary to address specific concerns raised by the union, these changes did not fundamentally alter the nature of the agreement. The Commission was satisfied that the agreement provided for fair and reasonable terms and conditions of employment and that it complied with the procedural requirements of the Act. Consequently, the Commission approved the Lochard Energy (Iona Operations) Enterprise Agreement 2019, subject to the minor amendments that were specified in the decision.

The final orders of the Commission included the approval of the enterprise agreement, with certain conditions attached to ensure compliance with the Fair Work Act. The Commission directed that the agreement would be certified as of a specified date, provided that the minor amendments were incorporated into the agreement. The parties were also directed to take specified steps to ensure the agreement was communicated to all relevant employees and that any disputes arising under the agreement would be dealt with in accordance with the Fair Work Act.

Lochard Energy (Iona Operations) Pty Ltd T/A Lochard Energy

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established