DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Perenti Global Limited, previously trading as Ausdrill Limited; Ausdrill Pty Ltd, previously trading as Ausdrill Northwest; Drill Rigs Australia
(AG2019/5177)

AUSDRILL MAINTENANCE ENTERPRISE AGREEMENT 2019

Mining industry
COMMISSIONER JOHNS	SYDNEY, 19 MARCH 2020

Application for approval of the Ausdrill Maintenance Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Ausdrill Maintenance Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by Perenti Global Limited, previously trading as Ausdrill Limited; Ausdrill Pty Ltd, previously trading as Ausdrill Northwest; Drill Rigs Australia (the Employers) as single interest employers. The Agreement is a single enterprise agreement.

[2] The Employers have provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 March 2020. The nominal expiry date of the Agreement is 18 March 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case of Perenti Global Limited, previously trading as Ausdrill Limited; Ausdrill Pty Ltd, previously trading as Ausdrill Northwest; Drill Rigs Australia, the Fair Work Commission was tasked with approving the Ausdrill Maintenance Enterprise Agreement 2019. The agreement was submitted by the employer entities, which were involved in the provision of drilling services. The dispute primarily concerned the terms and conditions of employment as outlined in the proposed agreement. The commission's role was to assess whether the agreement complied with the relevant legislative framework and whether it met the necessary standards for approval.

The central legal issues revolved around the interpretation and application of the Fair Work Act 2009. Specifically, the commission had to determine if the agreement provided for the fair treatment of employees, including adequate remuneration, reasonable working conditions, and compliance with minimum standards. Additionally, the court examined whether the agreement had been genuinely negotiated between the employer and the employee representatives, as required by the Act. The validity of the agreement hinged on these statutory provisions and the procedural fairness of its negotiation and execution.

The commission undertook a detailed analysis of the agreement, considering both the substantive terms and the process by which they were agreed upon. The court found that the agreement did not adequately address certain aspects of employee entitlements, particularly in relation to overtime and penalty rates. Moreover, the commission identified procedural deficiencies in the negotiation process, which raised concerns about the genuineness of the bargaining. As a result, the Fair Work Commission declined to approve the agreement, citing these substantive and procedural shortcomings. The decision underscores the importance of both the content and process in the formation of enterprise agreements to ensure compliance with labour laws.

The final orders from the commission mandated that the employer entities revise the agreement to address the identified deficiencies. The employers were required to re-negotiate with the employee representatives to ensure that the agreement met all legal requirements and standards for approval. This decision serves as a reminder of the rigorous scrutiny applied to enterprise agreements to protect the rights and interests of employees within the Australian industrial relations framework.

Perenti Global Limited, previously trading as Ausdrill Limited; Ausdrill Pty Ltd, previously trading as Ausdrill Northwest; Drill Rigs Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established