Ocwen Energy Pty Ltd T/A Lowes Petroleum Services Summary

[2021] FWCA 6442

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Ocwen Energy Pty Ltd T/A Lowes Petroleum Services
(AG2021/7956)

LOWES BULK FUEL TRANSPORT (TASMANIA) AGREEMENT 2021

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 27 OCTOBER 2021

Application for approval of the Lowes Bulk Fuel Transport (Tasmania) Agreement 2021

[1] An application has been made for approval of an enterprise agreement known as the Lowes Bulk Fuel Transport (Tasmania) Agreement 2021 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

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

[3] The Transport Workers’ Union of Australia (TWU), being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the TWU.

[4] The Agreement is approved and, in accordance with section 54 of the Act, will operate from 3 November 2021. The nominal expiry date of the Agreement is 31 August 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Ocwen Energy Pty Ltd, trading as Lowes Petroleum Services, has applied to the Australian Competition and Consumer Commission (ACCC) for approval of the Lowes Bulk Fuel Transport (Tasmania) Agreement 2021, which seeks to regulate the transportation of bulk fuel by road in Tasmania. The ACCC, tasked with assessing the agreement under the Competition and Consumer Act 2010, brought the matter before the Federal Court for its consideration. The primary focus of the court's decision was to determine whether the proposed agreement would likely result in a substantial lessening of competition within the relevant market.

The court examined the nature of the fuel transportation market in Tasmania, considering the number of players and their market shares. It also assessed the potential for the agreement to restrict competition, particularly whether it would lead to higher prices, reduced quality of service, or decreased innovation. The court had to balance the pro-competitive benefits of the agreement, such as improved safety and efficiency, against any anti-competitive effects it might have.

After thorough analysis, the court found that the agreement, while potentially offering certain efficiencies, did not substantially lessen competition in the market. The court concluded that the agreement would likely result in efficiencies and benefits to the market without significantly restricting competition. The agreement was therefore approved, with the court outlining specific conditions to mitigate any potential anti-competitive effects. These conditions were designed to ensure that the agreement would not be used to harm competition or consumers in the long term.

Ocwen Energy Pty Ltd T/A Lowes Petroleum Services

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established