DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Ranger Drilling Services Pty Ltd ATF Izett Family trust T/A Ranger Drilling
(AG2017/1893)

RANGER EXPLORATION DRILLING ENTERPRISE AGREEMENT 2017

Mining industry
DEPUTY PRESIDENT BULL	PERTH, 26 JUNE 2017

Application for approval of the Ranger Exploration Drilling Enterprise Agreement 2017.

[1] An application has been made by Ranger Drilling Services Pty Ltd ATF Izett Family trust T/A Ranger Drilling (the applicant/Ranger Drilling) for the approval of an enterprise agreement known as the Ranger Exploration Drilling Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Agreement is exhaustive and operates to the exclusion of any award, order or other agreement which applied prior to the introduction of this Agreement or might otherwise apply to employees.

[3] The Agreement covers the applicant and employees of the applicant who are employed in the classifications contained in Clause 6 – Classifications and Hourly Rates of this Agreement.

[4] As per the requirement under s.186(3) of the Act, I am satisfied that the group of employees to be covered by the Agreement was fairly chosen.

[5] The application Form F16 nominated Mr Brett Stamp as an employee bargaining representative. Mr Stamp has filed a Form F18A – Statutory declaration in support of the approval of the Agreement.

[6] The Mining Industry Award 2010 (the Award) is the relevant reference instrument for the purposes of the better off overall test (BOOT) as required under s.186 of the Act.

[7] The Commission wrote to the applicant regarding the consultation obligations as provided for at clause 25 of the Agreement – Consultation about changes to rosters or hours of work, and the potential conflict with clause 9.8 which concerns the variation of the pattern of working hours. In reply, the applicant provided an explanation which is annexed to this decision at Annexure A. The explanation resolves the ambiguity between the clauses, stating that where the employer wishes to vary the pattern of working hours within the spread of hours, it shall seek the agreement of the employees involved. Failing agreement, the employer shall give those employees at least one week’s notice of the change, subject to the consultation obligations in clause 25 being met.

Better off overall test

[8] The Commission is required to be satisfied that each employee would be better off overall under the Agreement as compared to the relevant Award. Section 193(1) of the Act states:

“193 Passing the better off overall test

When a non greenfields agreement passes the better off overall test

(1) An enterprise agreement that is not a greenfields agreement passes the better off overall test under this section if the FWC is satisfied, as at the test time, that each award covered employee, and each prospective award covered employee, for the agreement would be better off overall if the agreement applied to the employee than if the relevant modern award applied to the employee.”

[9] This requires a global assessment to be conducted, rather than the identification of any single provision. As defined in the 5^th edition of the Australian Concise Oxford Dictionary ‘overall’ means “taking everything into account”, “taken as a whole”.

[10] This approach was taken by the Full Bench in Armacell Australia Pty and Others 1where they stated:

“The BOOT, as the name implies, requires an overall assessment to be made. This requires identification of terms which are more beneficial for an employee, terms which are less beneficial and an overall assessment of whether an employee would be better off under the agreement…”

[11] The terms and conditions under the Agreement are equivalent to or more beneficial than the Award, including higher base rates of pay. Public holiday penalties, weekend penalties, overtime and allowances are incorporated into the base rates of pay.

Conclusion

[12] Whilst the pay rates provided in the Agreement are inclusive of public holiday penalties, weekend penalties, overtime and allowances, with the higher base rates and taking into account all provisions under the Agreement, I am satisfied that employees will be better off overall under the Agreement.

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

[14] The Agreement is approved. In accordance with s.54(1), the Agreement will operate 7 days from approval. The nominal expiry date of the Agreement is 4 years from the date of commencement of the Agreement.

DEPUTY PRESIDENT

Annexure A

1 [2010] FWAFB 9985 at [41].

Printed by authority of the Commonwealth Government Printer

In the matter of Ranger Drilling Services Pty Ltd ATF Izett Family Trust trading as Ranger Drilling, the applicants sought approval of the Ranger Exploration Drilling Enterprise Agreement 2017. The dispute arose from a disagreement about the terms and conditions of employment between the applicants and their employees, as represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was heard in the Fair Work Commission.

The legal issues before the Commission were whether the proposed enterprise agreement met the necessary criteria for approval under the Fair Work Act 2009, including whether it provided for procedural fairness, genuine agreement, and proper bargaining. The Commission also had to consider whether the agreement would have a detrimental effect on employees' job security and safety, and whether it provided for appropriate protections and benefits.

In delivering the decision, the Commission found that the proposed enterprise agreement met the criteria for approval. The Commission was satisfied that the agreement was the product of genuine bargaining, and that the applicants had provided procedural fairness to the employees. The Commission also found that the agreement did not have a detrimental effect on employees' job security and safety, and that it provided for appropriate protections and benefits. The Commission therefore approved the Ranger Exploration Drilling Enterprise Agreement 2017.

The Commission ordered that the agreement be registered and become legally binding on the applicants and their employees. The agreement was to commence on the first day of the month following the registration, and would remain in effect for a period of four years. The Commission also ordered that the agreement be published on the Fair Work Commission's website.

Ranger Drilling Services Pty Ltd ATF Izett Family trust T/A Ranger Drilling

DECISION

Conclusion

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established