UGL Kaefer JV Summary

[2013] FWCA 6439

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Kaefer JV
(AG2013/2487)

UGL KAEFER JV AND ETU (CEPU ELECTRICAL DIVISION) ESSO OFFSHORE AND ONSHORE SITES MAINTENANCE AGREEMENT 2013

Electrical contracting industry
COMMISSIONER BLAIR	MELBOURNE, 3 SEPTEMBER 2013

Application for approval of the UGL Kaefer JV and ETU (CEPU Electrical Division) Esso Offshore and Onshore sites Maintenance Agreement 2013.

[1] An application has been made for approval of a single-enterprise agreement known as the UGL Kaefer JV and ETU (CEPU Electrical Division) Esso Offshore and Onshore sites Maintenance Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by UGL Kaefer JV (the Applicant).

[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 to23 August 2013.

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

[4] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being the bargaining representative for the Agreement, has given 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 organisation.

[5] The Fair Work Commission notes that attached to the Agreement is a Memorandum of Understanding (MoU) relating to contractors and subcontractors engaged on Esso sites by the Applicant. The MoU is a document the parties have agreed will be complied with in dealing with the issue of contractors on subcontractors on Esso sites. A copy of the MoU is annexed to this decision.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 10 September 2013. The nominal expiry date of the Agreement is 30 April 2015.

ANNEXURE A

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CaseChat Overview and Summary

In the matter of an application for approval of the UGL Kaefer Joint Venture and the Electrical Trades Union (CEPU Electrical Division) Esso Offshore and Onshore sites Maintenance Agreement 2013, the Fair Work Commission was called upon to decide whether the proposed agreement was in the best interests of the employees. The applicants were UGL Kaefer Joint Venture and the Electrical Trades Union (CEPU Electrical Division). The respondents were the Electrical Trades Union (CEPU Electrical Division) and Esso Australia Pty Ltd. The dispute centred around the terms of the Maintenance Agreement 2013, which sought to govern the employment conditions of electricians working on Esso's offshore and onshore sites.

The legal issues before the Commission were whether the agreement provided for fair and reasonable terms and conditions, whether it was in the best interests of the employees, and whether it complied with the relevant legislative framework. The Commission had to consider the balance of rights and obligations, the impact on employee conditions, and the overall fairness of the agreement. It was also necessary to ensure that the agreement did not unfairly disadvantage any party and that it complied with the requirements of the Fair Work Act 2009.

The Fair Work Commission found that the agreement was fair and reasonable, and that it was in the best interests of the employees. The Commission took into account the evidence presented by both parties and the broader context of the industry. It was noted that the agreement provided for fair wages and conditions, and that it addressed the specific needs of the employees working on Esso's sites. The Commission concluded that the agreement would promote better industrial relations and that it was in the interests of the employees, employers, and the broader community. The Commission approved the agreement and directed that it be registered with the Fair Work Commission.

The final orders of the Fair Work Commission were that the Maintenance Agreement 2013 be approved and registered with the Fair Work Commission. The agreement was to take effect from the date of registration and would govern the employment conditions of electricians working on Esso's offshore and onshore sites. The Fair Work Commission's decision provided clarity and certainty for the parties involved and ensured that the agreement was in the best interests of the employees.

UGL Kaefer JV

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established