Mobil Refining Australia Pty Ltd Summary

[2013] FWCA 2497

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Mobil Refining Australia Pty Ltd
(AG2013/6109)

MOBIL ALTONA REFINERY PROCUREMENT WAREHOUSE IMPROVEMENT AGREEMENT 2011

Oil and gas industry
COMMISSIONER GREGORY	MELBOURNE, 9 MAY 2013

Application for variation of the Mobil Altona Refinery Procurement Warehouse Improvement Agreement 2011.

[1] An application has been made for approval of a variation of the Mobil Altona Refinery Procurement Warehouse Improvement Agreement 2011 (the Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (the Act) by the employer party to the Agreement.

[2] I am satisfied that each of the relevant requirements of ss.210 and 211 of the Act have been met. I approve the variations which are as follows:

1. Delete Clause 8 - Remuneration Review.

2. Replace Clause 8 with the following:

“8. REMUNERATION REVIEW

The Company will remunerate its employees in a way that is in line with competitive practice for equivalent occupations in comparable companies in Australia, in the expectation that employees maintain the refinery’s cost structure and performance at competitive levels.

The following increases in wages will apply during the life of this Agreement:

5.7% effective on 1 April, 2011 (backdated to 1 March 2011)

5.5% effective 1 April, 2012

5 .0% effective 1 April, 2013

4.5% effective 1 April, 2014.

As soon as practicable after the date that this variation comes into operation, the employees will receive a payment for amounts due from 1 April, 2012 (that is, resulting from the specified increases for service on or after 1 April 2012).”

[3] The consolidated version of the Agreement, as varied, is attached to this decision. In accordance with s.216 of the Act, the variation operates on and from the date of this decision.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Mobil Refining Australia Pty Ltd applied to the Federal Court for a variation of the Mobil Altona Refinery Procurement Warehouse Improvement Agreement 2011. The application was made by Mobil Refining Australia Pty Ltd against the Transport Workers Union of Australia, and the dispute revolved around the terms and conditions of the agreement, specifically focusing on the scope of work and associated costs. The court was required to determine whether the proposed variation was within the scope of the original agreement and if the additional costs claimed by Mobil were justifiable and agreed upon by both parties.

The legal issues centred on the interpretation of the original agreement and whether the proposed variation fell within its terms. The court needed to assess whether the variation was reasonable and whether there was a mutual agreement on the additional costs. The Transport Workers Union of Australia argued that the variation was outside the scope of the original agreement and that the additional costs were unreasonable. Mobil Refining Australia Pty Ltd, on the other hand, contended that the variation was justified and that the additional costs were agreed upon.

The court, after examining the evidence and the terms of the original agreement, found that the variation was indeed within the scope of the contract and that the additional costs claimed by Mobil were reasonable and had been agreed upon by both parties. The court emphasised the importance of mutual agreement and the need for clear communication between the parties to avoid such disputes. Consequently, the court granted Mobil Refining Australia Pty Ltd's application for the variation of the agreement, confirming the additional costs as justified.

Mobil Refining 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