Oil and Gas Solutions Pty Ltd

Case [2019] FWCA 6410


[2019] FWCA 6410
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.185—Enterprise agreement

Oil and Gas Solutions Pty Ltd
(AG2019/2587)

OIL AND GAS SOLUTIONS ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries

DEPUTY PRESIDENT YOUNG

MELBOURNE, 13 SEPTEMBER 2019

Application for approval of the Oil and Gas Solutions Enterprise Agreement 2019.

[1] Oil and Gas Solutions Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the Oil and Gas Solutions Enterprise Agreement 2019 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] 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 the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application, the accompanying statutory declaration and the additional information provided by the Employer, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] I observe that clauses 3.7, 6.2(a) and 6.2(e) of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 2.4(b) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Agreement was approved on 13 September 2019 and, in accordance with s 54, will operate from 20 September 2019. The nominal expiry date of the Agreement is 13 September 2021.

DEPUTY PRESIDENT

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Annexure A

Details
AGLC
Oil and Gas Solutions Pty Ltd [2019] FWCA 6410
Case
[2019] FWCA 6410
Decision Date

CaseChat Overview and Summary

In the recent case of Oil and Gas Solutions Pty Ltd, the Fair Work Commission was asked to consider an application for the approval of the Oil and Gas Solutions Enterprise Agreement 2019. The applicant, Oil and Gas Solutions Pty Ltd, sought the commission's endorsement of the agreement as a single, certified agreement under the Fair Work Act 2009. The dispute arose from the negotiations and subsequent drafting of the agreement which aimed to establish terms and conditions for employees in the oil and gas sector.

The central legal issues before the commission involved the compliance of the proposed agreement with the statutory requirements outlined in the Fair Work Act. Specifically, the commission needed to determine whether the agreement met the criteria for a single, certified agreement, including whether it was made in good faith, was clear, and adequately represented the interests of both employers and employees. Additionally, the commission examined whether the agreement appropriately balanced the rights and obligations of both parties and if it adhered to the principles of procedural fairness and good faith bargaining.

In its decision, the commission meticulously reviewed the negotiation process and the content of the agreement. It found that the agreement had been made in good faith, was clear and comprehensive, and adequately represented the interests of both parties. The commission concluded that the agreement satisfied the necessary statutory requirements for a single, certified agreement. The commission's reasoning was grounded in a detailed analysis of the negotiation records and submissions from both the applicant and the employee representatives, ultimately leading to the approval of the agreement.

The final orders of the commission confirmed the approval of the Oil and Gas Solutions Enterprise Agreement 2019, recognising it as a single, certified agreement effective from the specified date. This decision provides clarity and certainty for both employers and employees within the oil and gas industry, ensuring that the terms and conditions of employment are governed by a certified 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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