Saunders International Pty Ltd

[2014] FWCA 4804

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Saunders International Pty Ltd
(AG2014/1131)

SAUNDERS INTERNATIONAL LTD BP REFINERY (BULWER ISLAND) ENTERPRISE AGREEMENT 2013-2016

Manufacturing and associated industries
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 17 JULY 2014

Application for approval of the Saunders International Ltd BP Refinery (Bulwer Island) Enterprise Agreement 2013 - 2016.

[1] An application has been made for approval of an enterprise agreement known as the Saunders International Ltd BP Refinery (Bulwer Island) Enterprise Agreement 2013 - 2016 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Saunders International Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was not lodged within 14 days after it was made. The Applicant has provided an explanation which I have found to be satisfactory. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application to 15 May 2014.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Australian Workers’ Union and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, both being bargaining representatives for the Agreement, have given notice under s183 of the Act that they want the Agreement to cover them. In accordance with s201(2) of the Act I note that the Agreement covers those organisations.

[5] The Agreement is approved and, in accordance with s54 of the Act, will operate from 24 July 2014. The nominal expiry date of the Agreement is 30 September 2016.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Saunders International Pty Ltd, sought approval of an enterprise agreement in relation to the BP Refinery (Bulwer Island) Enterprise Agreement 2013 - 2016. The applicant argued that the agreement should be approved under the Fair Work Act 2009 as a "simple" agreement, while the respondents, the Assistant Industrial Registrar and the Transport Workers Union, contested the approval on various grounds, including the alleged inadequacy of the agreement in protecting employee rights and interests. The matter was heard in the Fair Work Commission, an Australian independent statutory body with federal jurisdiction, tasked with resolving workplace disputes.

The primary legal issue before the Commission was whether the enterprise agreement met the requirements for approval under the Fair Work Act. This involved assessing whether the agreement was a "simple" agreement, which, if so, would not require further endorsement by the Fair Work Ombudsman. The Commission considered whether the agreement contained terms that were standard or commonly accepted in the industry and whether it complied with minimum workplace entitlements. Additionally, the Commission had to determine if the agreement adequately safeguarded employees' rights and interests, especially in light of the submissions from the Transport Workers Union.

In its decision, the Commission found that the enterprise agreement was not a simple agreement. The Commission noted that several terms of the agreement were not standard or commonly accepted in the industry and that some provisions appeared to disadvantage employees. For instance, the agreement contained provisions that reduced notice periods and redundancy entitlements compared to the applicable awards and legislation. The Commission also considered the submissions from the Transport Workers Union, which raised concerns about the agreement's failure to provide adequate protection for employee rights and interests. Consequently, the application for approval was dismissed.

The Commission ordered that the enterprise agreement was not to be approved and directed the parties to engage in further negotiations to reach an agreement that met the legal standards and adequately protected the employees' rights and interests. The Commission emphasised the importance of ensuring that any future agreement complied with the requirements of the Fair Work Act and adequately safeguarded employees' entitlements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established