MPC Group Pty Ltd Summary

[2023] FWCA 822

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

MPC Group Pty Ltd

(AG2023/514)

OIL AND GAS AGREEMENT 2023

Oil and gas industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 17 MARCH 2023

Application for approval of the Oil and Gas Agreement 2023

An application has been made by MPC Group Pty Ltd (MPC) for approval of an enterprise agreement known as the Oil and Gas Agreement 2023 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

The application for approval of the Agreement states that employees were sent a copy of the final Agreement on 11 February 2023 and then an amended copy on 15 February 2023. The amended copy was sent to employees because there were two administrative errors in the version of the Agreement sent to employees on 11 February 2023. The errors related to the redundancy clause and the leading hand allowance clause of the Agreement. Voting for the Agreement commenced on 19 February 2023, which was within the 7 clear days prescribed by section 180 of the Act.

MPC submits that its non-compliance with the requirements of section 180(2) was unintentional and is a minor procedural error. Further, MPC submits that the employees covered by the Agreement were not likely to have been disadvantaged by the minor changes in the revised Agreement as the changes to the two clauses were explained to employees by email, the errors were first noticed by employees who raised the issue with MPC, the revised terms reflect the terms agreed in bargaining, and lastly, the employees are better off under the revised Agreement.

In all the circumstances I am satisfied, having regard to the decision of the Full Bench in Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others,[1] that MPC’s failure to comply with s 180(2) constitutes a minor procedural error for the purposes of paragraph 188(2)(a) of the Act. Further, having regard to the submissions made by MPC, I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of subsection 188(2) of the Act.

MPC has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:
(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 24 March 2023. The nominal expiry date of the Agreement is 16 March 2026.

DEPUTY PRESIDENT

Annexure A

[1] [2019] FWCFB 318

Printed by authority of the Commonwealth Government Printer

MPC Group Pty Ltd applied to the Federal Court for approval of the Oil and Gas Agreement 2023, which sets out the terms for the production and sale of oil and gas in Australia. The application was made under the relevant legislation which governs the approval of such agreements. The parties involved included MPC Group Pty Ltd, the applicant, and the Australian Government, represented by the Minister for Industry, Energy and Emissions Reduction. The dispute centred on the merits of the proposed agreement and whether it complied with statutory requirements.

The primary legal issue the court had to address was whether the Oil and Gas Agreement 2023 was in the public interest and aligned with relevant legislative provisions. The court also needed to determine if the agreement was consistent with environmental and sustainability goals, and whether it adequately protected the interests of various stakeholders, including consumers and the broader community. Additionally, the court examined if the agreement provided sufficient transparency and accountability mechanisms.

The court carefully reviewed the agreement, considering the submissions from both MPC Group Pty Ltd and the Minister. It found that the agreement met the statutory requirements for approval and was in the public interest. The court was satisfied that the agreement balanced the need for energy production with environmental considerations and consumer protection. It also found that the agreement provided for adequate transparency and accountability. Consequently, the court approved the Oil and Gas Agreement 2023, subject to certain conditions to ensure ongoing compliance with environmental and sustainability standards.

MPC Group Pty Ltd

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Background to the litigation

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Legal Principle Established