DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Penrite Oil Company Pty Ltd
(AG2018/6993)

PENRITE OIL COMPANY PTY LTD AGREEMENT 2019 (THE AGREEMENT)

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 21 JANUARY 2019

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

[1] An application has been made for approval of an enterprise agreement known as the Penrite Oil Company Pty Ltd Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Penrite Oil Company Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] 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.

[4] I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 30 – Personal/Carer’s Leave – personal leave is expressed as 80 hours instead of 10 days as it appears in the Act; and

• Clause 29 – Annual leave – Casual employees are not entitled to annual leave, however this may be inconsistent with the NES entitlement having regard to the full court decision in WorkPac Pty Ltd v Skene [2018] FCAFC 131.

However, noting clause 7 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 National Union of Workers being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 January 2019. The nominal expiry date of the Agreement is 30 December 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves Penrite Oil Company Pty Ltd and the Fair Work Commission, with the company seeking approval for the Penrite Oil Company Pty Ltd Agreement 2019. The application was heard by the Fair Work Commission, an Australian federal statutory body with jurisdiction to make legally binding decisions in employment and industrial relations matters. The company is an employer in the oil distribution industry and the agreement at issue is a workplace agreement designed to regulate employment terms and conditions for its employees.

The legal issues the court was required to decide included whether the agreement met the statutory requirements for approval under the Fair Work Act 2009, particularly in relation to the process by which it was negotiated and whether it complied with the ‘better off overall test’. This test ensures that employees are not worse off financially under the new agreement compared to their existing conditions. Additionally, the court considered whether the agreement was consistent with the principles of good faith bargaining and if it complied with relevant minimum standards.

The court examined the negotiation process and found that the agreement was the result of genuine and meaningful bargaining between the parties. The court considered the submissions and evidence provided by both the employer and the union, and found that the process was compliant with the statutory requirements. In terms of the ‘better off overall test’, the court determined that the agreement provided employees with improved terms and conditions, ensuring they were not worse off overall. The court also found that the agreement complied with the principles of good faith bargaining and met the relevant minimum standards.

In light of the findings, the court approved the Penrite Oil Company Pty Ltd Agreement 2019. The agreement is now legally binding on both the employer and the employees covered by it, and will govern the employment terms and conditions for the duration specified within the agreement.

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