UGL Kaefer JV Summary

[2013] FWCA 6475

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Kaefer JV
(AG2013/2580)

UGL KAEFER, AMWU OFFSHORE MECHANICAL MAINTENANCE SERVICES ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER BLAIR	MELBOURNE, 3 SEPTEMBER 2013

Application for approval of the UGL Kaefer, AMWU Offshore Mechanical Maintenance Services Enterprise Agreement 2013.

[1] An application has been made for approval of a single-enterprise agreement known as the UGL Kaefer, AMWU Offshore Mechanical Maintenance Services Enterprise 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 to 28 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 “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), 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

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of UGL Kaefer JV, the Fair Work Commission was called upon to approve an enterprise agreement between UGL Kaefer, a joint venture, and the Australian Manufacturing Workers' Union (AMWU). The proposed agreement, titled the UGL Kaefer, AMWU Offshore Mechanical Maintenance Services Enterprise Agreement 2013, sought to govern the terms and conditions of employment for workers within the offshore mechanical maintenance services sector. The application for approval came about as a result of the parties' engagement in good faith bargaining and the AMWU's submission of the agreement for endorsement under the Fair Work Act 2009.

The legal issues before the Commission involved assessing the fairness of the proposed agreement and ensuring compliance with the legislative criteria set forth in the Fair Work Act. Specifically, the Commission had to determine whether the agreement met the "better off overall test" (BOOT), which required the agreement to provide employees with at least the same conditions as those provided under the applicable award or modern award. The Commission also needed to consider the procedural fairness of the bargaining process, the nature of the agreement, and whether it adhered to the principles of enterprise bargaining as outlined in the Act.

Upon reviewing the evidence and submissions presented, the Commission found that the proposed agreement met the BOOT and was procedurally fair. The agreement provided employees with conditions that were at least as good as, if not better than, those provided under the relevant award. The Commission acknowledged the parties' good faith efforts in negotiating the agreement and accepted that it reflected a genuine enterprise bargaining process. As a result, the Fair Work Commission approved the UGL Kaefer, AMWU Offshore Mechanical Maintenance Services Enterprise Agreement 2013, bringing the application to a successful conclusion.

The final orders of the Fair Work Commission included the approval of the UGL Kaefer, AMWU Offshore Mechanical Maintenance Services Enterprise Agreement 2013, effective from the date of the decision. The approved agreement now serves as the governing document for the employment conditions of workers within the offshore mechanical maintenance services sector, as represented by UGL Kaefer and the AMWU.

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