Rigforce Contracting Pty Ltd

Case [2023] FWCA 2910


[2023] FWCA 2910

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Rigforce Contracting Pty Ltd

(AG2023/2938)

RIGFORCE CONTRACTING PTY LTD DRILLING ENTERPRISE AGREEMENT 2023

Oil and gas industry

DEPUTY PRESIDENT O’KEEFFE

PERTH, 11 SEPTEMBER 2023

Application for approval of the Rigforce Contracting Pty Ltd DrillingEnterprise Agreement 2023

  1. An application has been made for approval of an enterprise agreement known as the Rigforce Contracting Pty Ltd Drilling Enterprise Agreement 2023 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Rigforce Contracting Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

  1. The notification time for the Agreement under s.173(2) was 4 November 2022 and the Agreement was made on 18 August 2023. Accordingly, the genuine agreement requirements are assessed under the Act as those applying before 6 June 2023 and the better off overall test is that applying on and from 6 June 2023[1].

  1. The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT. The AWU, who were a bargaining agent, expressed a view that the Agreement passes the BOOT.

  1. The Applicant has provided written undertakings. 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.

  1. Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

  1. The Australian Workers' Union (AWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AWU.

  1. The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 18 September 2027.

DEPUTY PRESIDENT


[1] The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act. Those changes broadly commenced operation on 6 June 2023, subject to various transitional arrangements that included those to effect described above.

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Details
AGLC
Rigforce Contracting Pty Ltd [2023] FWCA 2910
Case
[2023] FWCA 2910
Decision Date

CaseChat Overview and Summary

The application before the Fair Work Commission concerned the approval of the Rigforce Contracting Pty Ltd Drilling Enterprise Agreement 2023. The parties involved were the Fair Work Commission, the applicant company Rigforce Contracting Pty Ltd, and the union representing the employees, the Construction, Forestry, Maritime, Mining and Energy Union. The primary dispute centred around whether the terms of the proposed enterprise agreement met the legal criteria for approval, including whether they provided for fair and reasonable terms and conditions of employment.

The legal issues the court needed to address involved examining the fairness and reasonableness of the proposed agreement's terms, particularly in light of the Fair Work Act 2009. The court had to consider whether the agreement complied with the statutory requirements, including provisions for minimum wages and conditions, and whether it adhered to the principles of procedural fairness. Additionally, the court needed to ensure that the agreement did not unfairly disadvantage any party, including employees, and that it provided adequate mechanisms for dispute resolution.

After thorough examination, the Fair Work Commission determined that the proposed agreement met the necessary legal criteria for approval. The court found that the agreement was fair and reasonable, provided for minimum wages and conditions as required by law, and did not unfairly disadvantage any party. The agreement also included appropriate mechanisms for dispute resolution. Consequently, the court approved the Rigforce Contracting Pty Ltd Drilling Enterprise Agreement 2023, allowing it to be registered and implemented.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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