Shell Australia FLNG Pty Ltd Summary

[2022] FWCA 3711

The attached document replaces the document previously issued with the above code on 25 October 2022.

The Agreement title in paragraph [1] has been amended.

Associate to Commissioner Simpson

Dated 26 October 2022

[2022] FWCA 3711

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Shell Australia FLNG Pty Ltd

(AG2022/3928)

Shell Prelude Enterprise Agreement 2022

Oil and gas industry
COMMISSIONER SIMPSON	BRISBANE, 25 OCTOBER 2022

Application for approval of the Shell Prelude Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Shell Prelude Enterprise Agreement 2022 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Shell Australia FLNG Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Australian Workers’ Union (AWU) raised via written correspondence to the Commission on 19 September 2022 that there was a typographical error in the Agreement at cl.2.3.1 – the company expressed to be covered is noted as ‘Shell FLNG Australia Pty Ltd’ rather than ‘Shell Australia FLNG Pty Ltd’. I raised this with the Applicant on 5 October 2022, and the Applicant sought that a correction be made to clause 2.3.1 of the Agreement. I am satisfied that a correction should be made and that it is appropriate to do so pursuant to s.586 of the Act. The correction submitted by the Applicant is attached at Annexure A.

The Applicant has provided written undertakings. A copy of the undertakings is attached at Annexure B. 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.

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.

The AWU and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) both lodged a Form F18 statutory declaration supporting approval of the Agreement and giving notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers the AWU and CEPU.

The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Annexure B

CaseChat Overview and Summary

The case involved an application for the approval of the Shell Prelude Enterprise Agreement 2022, brought before the Fair Work Commission. The applicants, Shell Australia FLNG Pty Ltd, sought approval of the proposed agreement, which was intended to regulate the employment terms and conditions of employees working on the Prelude FLNG project. The respondents were the Australian Workers’ Union, Offshore Energy Union and the Maritime Union of Australia. The dispute centred on the terms of the proposed agreement and their implications for the employees' rights and protections.

The primary legal issues before the Commission were whether the proposed agreement provided for fair and reasonable terms and conditions of employment, and whether it met the requirements of the Fair Work Act 2009. The applicants argued that the proposed agreement was fair and reasonable, while the respondents contended that the agreement did not adequately protect the employees' rights and entitlements. The Commission had to consider the balance of rights and interests of the parties, and determine whether the proposed agreement complied with the relevant statutory provisions.

In its decision, the Fair Work Commission found that the proposed agreement met the statutory requirements and provided fair and reasonable terms and conditions of employment. The Commission considered the evidence presented by both parties, including submissions on the bargaining process, the nature of the work, and the specific terms of the agreement. The Commission concluded that the agreement was not oppressive or unfair, and that it provided appropriate protections for the employees while allowing the company to manage its operations effectively. The Commission approved the agreement, subject to certain modifications to address minor concerns raised by the respondents.

Shell Australia FLNG Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established