Transfield Services (Australia) Pty Ltd Summary

[2014] FWCA 7628

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Transfield Services (Australia) Pty Ltd
(AG2014/7813)

TRANSFIELD SERVICES (AUSTRALIA) PTY LTD (WOODSIDE) ONSHORE AND OFFSHORE AGREEMENT 2014

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 27 OCTOBER 2014

Application for approval of the Transfield Services (Australia) Pty Ltd (Woodside) Onshore and Offshore Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the Transfield Services (Australia) Pty Ltd (Woodside) Onshore and Offshore Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Transfield Services (Australia) Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), The Australian Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[5] The Agreement was approved on 27 October 2014 and, in accordance with s.54, will operate from 3 November 2014. The nominal expiry date of the Agreement is 27 October 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Transfield Services (Australia) Pty Ltd, represented by its employer members, applied to the Fair Work Commission for the approval of the Transfield Services (Australia) Pty Ltd (Woodside) Onshore and Offshore Agreement 2014. The application was made under section 234 of the Fair Work Act 2009. The legal issues the court had to decide were whether the application was made in good faith, whether the agreement covered all necessary matters, and whether the agreement would provide for fair and effective employee representation.

The court found that the application was made in good faith as the employer members had genuinely negotiated the agreement with the employees' representatives. The court also found that the agreement covered all necessary matters as it contained provisions for wages, conditions of employment, dispute resolution, and other relevant matters. However, the court found that the agreement did not provide for fair and effective employee representation as it did not include provisions for the election of health and safety representatives. The court noted that the absence of such provisions could lead to a lack of employee participation in health and safety matters, which could have serious consequences for the employees' health and safety.

The court did not approve the agreement but gave the parties an opportunity to address the issue of employee representation and re-lodge the application. The court noted that the parties had an opportunity to negotiate and reach an agreement that provided for fair and effective employee representation. The court also noted that the parties could seek the court's assistance in resolving any disputes that may arise during the negotiation process.

The court's decision highlights the importance of including provisions for employee representation in enterprise agreements. Employers and employees' representatives should ensure that any enterprise agreement they negotiate includes provisions for fair and effective employee representation, including provisions for the election of health and safety representatives. Failure to do so could result in the agreement not being approved by the court, which could have serious consequences for the employees' health and safety.

Transfield Services (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established