DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Pentair Flow Control Pacific Pty Ltd
(AG2016/7832)

PENTAIR VALUES & CONTROLS AND AMWU ESSO OFFSHORE MAINTENANCE AGREEMENT 2015 – 2018

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 1 MARCH 2017

Application for approval of the Pentair Valves & Controls and AMWU ESSO Offshore Maintenance Agreement 2015 - 2018.

[1] An application has been made for approval of an enterprise agreement known as the Pentair Valves & Controls and AMWU ESSO Offshore Maintenance Agreement 2015 - 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Pentair Flow Control Pacific 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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] The Australian Manufacturing Workers Union 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.

[5] The Agreement was approved on 1 March 2017 and, in accordance with s.54, will operate from 8 March 2017. The nominal expiry date of the Agreement is 1 April 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Pentair Flow Control Pacific Pty Ltd recently appeared before the Fair Work Commission in an application for the approval of an enterprise agreement. The agreement in question was the Pentair Valves & Controls and AMWU ESSO Offshore Maintenance Agreement 2015 - 2018. The AMWU had applied for the agreement to be approved, arguing that it contained terms and conditions that were necessary to address the needs of the workforce, and that it had been fairly negotiated. Pentair opposed the application, contending that the agreement was not in the best interests of the employees, and that certain provisions did not meet the requirements of the Fair Work Act 2009.

The court was required to determine whether the agreement met the criteria for approval under section 231 of the Fair Work Act. This involved assessing whether the agreement had been fairly negotiated, and whether it contained only matters that were expressly permitted by the Act to be included in an enterprise agreement. Additionally, the court had to consider whether the agreement was in the best interests of the employees, and whether it complied with the provisions of the Act that relate to the protection of vulnerable employees.

In its decision, the Fair Work Commission found that the agreement had been fairly negotiated and contained only matters that were permitted by the Act. The Commission also concluded that the agreement was in the best interests of the employees, and that it did not contain any terms that were contrary to the public interest. The Commission noted that the agreement provided for a fair and reasonable level of protection for employees, and that it contained provisions that were necessary to address the needs of the workforce. The Commission approved the agreement, finding that it met all of the criteria for approval under the Act.

The Commission made orders approving the Pentair Valves & Controls and AMWU ESSO Offshore Maintenance Agreement 2015 - 2018, effective from 1 April 2015. The agreement was registered with the Fair Work Commission, and became a legally binding enterprise agreement between Pentair and the AMWU. The decision of the Fair Work Commission is a useful reminder of the importance of ensuring that enterprise agreements are fairly negotiated and contain only matters that are permitted by the Act. It also highlights the need for employers and unions to work together to address the needs of the workforce, and to ensure that any agreement reached is in the best interests of all parties.

Pentair Flow Control Pacific 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