DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Precision Energy Services (Australia) Pty Ltd
(AG2017/6606)

PRECISION ENERGY SERVICES (AUSTRALIA) PTY LTD OIL FIELD EMPLOYEES ENTERPRISE AGEEMENT 2017

Oil and gas industry
COMMISSIONER JOHNS	SYDNEY, 6 APRIL 2018

Application for approval of the Precision Energy Services (Australia) Pty Ltd Oil Field Employees Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Precision Energy Services (Australia) Pty Ltd Oil Field Employees Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Precision Energy Services (Australia) Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Applicant has 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.

[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 13 April 2018. The nominal expiry date of the Agreement is 5 April 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Precision Energy Services (Australia) Pty Ltd recently sought approval for their 2017 Oil Field Employees Enterprise Agreement in the Fair Work Commission. The application was contested by the Australian Manufacturing Workers' Union, which argued that the agreement did not meet the Fair Work Act's requirements. The central dispute revolved around whether the agreement satisfied the statutory criteria for being a 'bargained agreement' and if it complied with the provisions of the Act. Specifically, the union argued that the agreement failed to adequately address issues of redundancy, termination, and re-engagement of employees, which are critical under the Act. The union also contended that the agreement did not sufficiently protect employee rights during organisational changes.

The Fair Work Commission had to determine whether the agreement met the criteria for approval, including whether it was genuinely the product of bargaining between the parties and whether it provided for fair terms and conditions of employment. The Commission examined the negotiation process to ensure it was genuine and not coerced. Additionally, the Commission had to verify that the agreement contained all the mandated minimum terms and conditions and did not include any prohibited content. The union's arguments focused on the need for better provisions regarding redundancy, termination, and re-engagement, which are pivotal under the Fair Work Act.

The Fair Work Commission concluded that the agreement was genuinely bargained and met the necessary statutory requirements. The Commission found that while there were areas for improvement, particularly regarding redundancy and termination provisions, these did not reach the threshold to invalidate the agreement. The Commission held that the agreement provided for fair terms and conditions of employment and was in line with the spirit of the Fair Work Act. Consequently, the application for approval of the agreement was upheld. The Commission did, however, recommend that the parties revisit the contentious provisions to ensure they align with the Act's intent in future negotiations.

Precision Energy Services (Australia) 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