Sulzer Chemtech Pty Ltd

[2013] FWCA 5677

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sulzer Chemtech Pty Ltd
(AG2013/7687)

SULZER CHEMTECH PTY LTD - AMWU - GORGON PROJECT - BARROW ISLAND GREENFIELDS AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 5 SEPTEMBER 2013

Application for approval of the Sulzer Chemtech Pty Ltd - AMWU - Gorgon Project - Barrow Island Greenfields Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Sulzer Chemtech Pty Ltd - AMWU - Gorgon Project - Barrow Island Greenfields Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 of the Act 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 seven days from the date of this decision. The nominal expiry date of the Agreement is 30 June 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Sulzer Chemtech Pty Ltd sought approval of an enterprise agreement under the Fair Work Act 2009. The Australian Manufacturing Workers' Union (AMWU) had negotiated the agreement on behalf of certain employees working on the Gorgon Project on Barrow Island. The nature of the dispute involved the approval of the terms and conditions of employment as outlined in the proposed enterprise agreement. The matter was heard in the Fair Work Commission.

The primary legal issues before the Commission were whether the agreement met the "better off overall test" (BOOT) and if it complied with procedural fairness. The BOOT required that employees be no worse off financially under the agreement than they would be under their existing awards. Additionally, procedural fairness was assessed to ensure that the agreement was negotiated fairly and that employees had an opportunity to be heard. The Commission had to determine if the agreement met these legal standards.

The Fair Work Commission found that the agreement did meet the BOOT as employees would be better off overall with the proposed conditions, including wage increases and other benefits. It also concluded that the agreement was negotiated in good faith and that procedural fairness was observed. The Commission was satisfied that the agreement provided for fair terms and conditions of employment and approved the agreement. The decision was made on the basis that the agreement provided a fair and reasonable outcome for all parties involved.

The Fair Work Commission approved the enterprise agreement, allowing it to be registered and enforced. The agreement outlined the terms and conditions of employment for the employees involved in the Gorgon Project on Barrow Island, as negotiated by the AMWU. This decision provided clarity and legal certainty for both the employer and the employees regarding their rights and obligations under the new agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established