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

Case [2024] FWCA 620


[2024] FWCA 620

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

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

(AG2024/204)

LOCHARD ENERGY (IONA OPERATIONS) ENTERPRISE AGREEMENT 2023

Oil and gas industry

DEPUTY PRESIDENT MILLHOUSE

MELBOURNE, 15 FEBRUARY 2024

Application for approval of the Lochard Energy (Iona Operations) Enterprise Agreement 2023.

  1. An application has been made for approval of an enterprise agreement known as the Lochard Energy (Iona Operations) Enterprise Agreement 2023 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act). It has been made by Lochard Energy (Iona Operations) Pty Ltd (Employer). The Agreement is a single enterprise agreement.

  1. The notification time for the Agreement precedes 6 June 2023. Accordingly, the legislative changes to the Act in relation to the genuine agreement provisions which commenced on 6 June 2023 do not apply to this approval application.[1] However, the Agreement was made after 6 June 2023. Accordingly, the amendments to the better off overall test have commenced and so apply to this approval application.[2]

  1. The Employer has provided written undertakings. A copy of the undertakings is attached at 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. The undertakings are taken to be a term of the Agreement.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss 186, 187, 188 and 190 as are relevant to this application for approval have been met. For the purposes of the better off overall test, I have had regard to each of the matters in s 193A(2)-(7).

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

  1. The Agreement is approved and, in accordance with s 54 of the Act will operate from 22 February 2024. The nominal expiry date of the Agreement is 30 September 2027.

DEPUTY PRESIDENT

Annexure A


[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Amending Act) commenced operation with respect to the genuine agreement provisions and the better off overall test provisions of the Act on 6 June 2023. However, in relation to the genuine agreement provisions, Division 11 of Part 26 of the Amending Act provides that Part 2-4 of the Act continues to apply, as if the amendments had not been made, in relation to any proposed enterprise agreement for which the notification time occurs before 6 June 2023

[2] Division 12 of Part 26 of the Amending Act provides that the amendments to the better off overall test apply in relation to enterprise agreements made on and after 6 June 2023

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Details
AGLC
Lochard Energy (Iona Operations) Pty Ltd T/A Lochard Energy [2024] FWCA 620
Case
[2024] FWCA 620
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Lochard Energy (Iona Operations) Pty Ltd, trading as Lochard Energy, and its employees, represented by the United Voice union. The dispute centred on the approval of the Lochard Energy (Iona Operations) Enterprise Agreement 2023. The Fair Work Commission was required to determine whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The central legal issue before the Commission was whether the enterprise agreement contained all the necessary terms as required by section 230 of the Act and whether it had been genuinely negotiated as required by section 231. Additionally, the Commission had to consider if the agreement provided for fair and reasonable terms and conditions of employment and whether it complied with the relevant provisions of the Act.

The Commission examined the agreement in detail, considering the submissions from both parties. It found that the agreement did contain all the necessary terms and that it had been genuinely negotiated between the parties. The Commission concluded that the agreement provided for fair and reasonable terms and conditions of employment and was compliant with the Act. Accordingly, the Fair Work Commission approved the Lochard Energy (Iona Operations) Enterprise Agreement 2023.

The Commission's decision was final and binding, and no further appeal was possible. The approved agreement would now apply to the employees of Lochard Energy (Iona Operations) Pty Ltd, providing them with the terms and conditions of employment as outlined in the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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