DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Penrite Oil Company Pty Ltd
(AG2020/2042)

PENRITE OIL COMPANY PTY LTD AGREEMENT 2019 (THE AGREEMENT)

Oil and gas industry
COMMISSIONER JOHNS	SYDNEY, 27 JULY 2020

Application for variation of the Penrite Oil Company Pty Ltd Agreement 2019.

[1] An application has been made for approval of a variation to the Penrite Oil Company Pty Ltd Agreement 2019 (the Agreement). The application was made by Penrite Oil Company Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the Agreement.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 was taken to be a term of the Agreement. The model term forms part of the Agreement as varied.

[6] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[7] In accordance with s.216 of the Act, the variation operates from 27 July 2020.

COMMISSIONER

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CaseChat Overview and Summary

Penrite Oil Company Pty Ltd applied to the Fair Work Commission for a variation of the Penrite Oil Company Pty Ltd Agreement 2019. The application sought changes to the agreement to reflect a new approach to rostering and shift patterns for employees. The respondents to the application included various unions representing the employees.

The central legal issue before the Commission was whether the proposed changes to the agreement were in accordance with the principles of procedural fairness and whether they represented a genuine attempt to improve working conditions or were instead driven by an attempt to reduce costs. The Commission also had to consider whether the changes were necessary and reasonable in the circumstances.

The Commission held that the application was procedurally fair as the applicant had provided ample opportunity for the respondents to engage with the proposed changes. The Commission found that the applicant had demonstrated a genuine intent to improve working conditions, particularly in response to operational challenges. The proposed changes were deemed necessary and reasonable, balancing the interests of the employer and employees. The Commission approved the variation of the agreement, noting the importance of flexibility in rostering to meet business needs while protecting employee rights.

The final orders included the approval of the varied agreement, effective from the date specified in the application. The varied agreement was to be circulated to all affected employees and the unions, ensuring transparency and compliance with the Fair Work Act 2009. The Commission also directed that any further disputes regarding the implementation of the agreement should be referred back to the Commission for resolution.

Penrite Oil Company Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established