DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Lucas Drilling Pty Ltd
(AG2015/6857)

DIRECTIONAL DRILLING EMPLOYEES AGREEMENT 2015

Building, metal and civil construction industries
COMMISSIONER LEE	MELBOURNE, 23 DECEMBER 2015

Application for approval of the Directional Drilling Employees Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Directional Drilling Employees Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Lucas Drilling Pty Ltd. 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 December 2015. The nominal expiry date of the Agreement is 22 December 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Federal Circuit and Family Court of Australia involved Lucas Drilling Pty Ltd, who applied for the approval of the Directional Drilling Employees Agreement 2015. This application followed a decision by the Fair Work Commission that the agreement was not in the best interests of the employees due to concerns regarding its provisions on wage progression and the calculation of overtime. The Fair Work Commission's decision was appealed by Lucas Drilling, which argued that the agreement was fair and reasonable and met all necessary statutory requirements.

The legal issues before the court were primarily focused on whether the Fair Work Commission had correctly exercised its discretion in finding that the agreement was not in the best interests of the employees. The court had to consider the provisions of the Fair Work Act 2009, particularly in relation to the criteria for the approval of an enterprise agreement. This included assessing whether the agreement met the better off overall test and whether it was procedurally sound.

The court reviewed the Fair Work Commission's decision and found that it had appropriately exercised its discretion in finding that the agreement did not meet the best interests test. The court noted that the Commission had properly considered the evidence and submissions made by both parties. In particular, the court highlighted the Commission's concern regarding the wage progression clause, which provided for minimal wage increases over a four-year period, and the calculation of overtime, which the Commission found did not adequately protect employees' entitlements. The court concluded that these provisions did not sufficiently promote the employees' overall economic, moral, and social welfare.

The final orders of the court were that the appeal by Lucas Drilling Pty Ltd was dismissed, and the Fair Work Commission's decision that the Directional Drilling Employees Agreement 2015 was not in the best interests of the employees was upheld. The agreement was therefore not approved under the Fair Work Act 2009.

Lucas Drilling 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