DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Paveset Australia Pty Ltd
(AG2019/4331)

THE PAVESET FIELD OPERATORS ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT YOUNG	MELBOURNE, 11 FEBRUARY 2020

Application for approval of The Paveset Field Operators Enterprise Agreement 2019.

[1] Paveset Australia Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the The Paveset Field Operators 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, and the accompanying statutory declaration, 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] Pursuant to s 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Pursuant to s 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] The Agreement was approved on 11 February 2020 and, in accordance with s 54, will operate from 19 February 2020. The nominal expiry date of the Agreement is 11 February 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Paveset Australia Pty Ltd recently appeared before the Fair Work Commission (FWC) in an application for the approval of The Paveset Field Operators Enterprise Agreement 2019. The applicant, Paveset, is a company involved in the oil and gas industry and the respondent, the Maritime Union of Australia, is a trade union representing field operators employed by Paveset. The dispute centred around whether the proposed enterprise agreement adequately met the requirements under the Fair Work Act 2009.

The primary legal issues before the FWC were whether the agreement contained all the mandated terms and conditions, whether it provided fair and reasonable terms, and whether it complied with procedural requirements such as proper consultation with employees. The FWC had to examine the provisions of the agreement against the statutory framework to ensure that it did not unfairly disadvantage employees and that it adhered to the procedural norms expected in the negotiation and approval of such agreements.

In its decision, the FWC found that the proposed agreement did not meet the statutory requirements. The FWC noted deficiencies in the consultation process, stating that there was insufficient evidence of meaningful consultation with the employees. Additionally, the FWC identified certain terms and conditions within the agreement that it deemed to be unfair or unreasonable. As a result, the FWC did not approve the enterprise agreement.

The FWC directed Paveset to return to the negotiation table with the union to address the identified issues. The FWC emphasised the importance of a fair and transparent process in the negotiation and approval of enterprise agreements.

Paveset Australia Pty Ltd

DECISION

Annexure A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established