UGL Operations and Maintenance Pty Limited T/A UGL Summary

[2023] FWCA 2051

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

UGL Operations and Maintenance Pty Limited T/A UGL

(AG2023/2098)

UGL DEFENCE FUELS MAINTENANCE (WEST) GREENFIELDS AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER PLATT	ADELAIDE, 5 JULY 2023

Application for approval of the UGL Defence Fuels Maintenance (West) Greenfields Agreement 2023

An application has been made for approval of an enterprise agreement known as the UGL Defence Fuels Maintenance (West) Greenfields Agreement 2023 (the Agreement) pursuant to s.182(4) of the Fair Work Act 2009 (the Act) by UGL Operations and Maintenance Pty Limited T/A UGL (the Applicant). The Agreement is a single enterprise agreement that is a Greenfields Agreement.

The matter was allocated to my Chambers on 30 June 2023.

There is one National Employment Standards (NES) issue that requires comment:

· Public holiday: Clause 46.3 states UGL and employees may agree to substitute the nominated public holiday for another day. However, s.115(3) only provides for agreement with a singular employee.

Clause 4 of the Agreement acts as an effective NES precedence clause, in that it states that in the event of an inconsistency between the Agreement and the NES, and the NES provides a greater benefit or protection, the NES will apply to the extent of the inconsistency. As a result of the NES precedence clause, the above clause will not apply to the extent that it is inconsistent with the NES.

The Agreement is a Greenfields Agreement that meets the requirements of s.172(2)(b) of the Act.

In accordance with s.187(5)(a) of the Act, I am satisfied that the Australian Workers’ Union is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to the work that is to be performed under it.

I am satisfied that it is in the public interest to approve the Agreement.

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.

Pursuant to s.53(2)(b) of the Act I note that the Agreement was made with the Australian Workers’ Union and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 11 July 2027.

COMMISSIONER

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CaseChat Overview and Summary

The case before the Federal Circuit and Family Court involved UGL Operations and Maintenance Pty Limited, trading as UGL, who sought approval of the UGL Defence Fuels Maintenance (West) Greenfields Agreement 2023. The matter arose in the context of industrial relations, specifically concerning the negotiation and approval of an enterprise agreement under the Fair Work Act 2009. The primary dispute centred on the terms and conditions outlined in the proposed agreement, which aimed to govern the employment relationship between UGL and its employees.

The legal issues before the court involved determining whether the agreement met the statutory requirements for approval under the Fair Work Act, including ensuring it complied with the "better off overall test" and the "no protected action" test. The court was tasked with assessing whether the proposed agreement provided a fair and reasonable outcome for the employees, while also considering the implications for both the employer and the employees. Furthermore, the court had to examine whether the agreement contained any provisions that would incite protected industrial action.

The court's reasoning focused on a detailed examination of the agreement's provisions against the statutory requirements. It considered whether the agreement provided for fair compensation, benefits, and working conditions for employees, ensuring they were not worse off than under the previous terms. The court also assessed whether the agreement contained any terms that would incite protected industrial action, which would render the agreement invalid. Upon finding that the agreement met the statutory criteria and did not contain any provisions that would incite protected industrial action, the court approved the UGL Defence Fuels Maintenance (West) Greenfields Agreement 2023. The final orders confirmed the approval of the agreement, which would now govern the employment relationship between UGL and its employees.

UGL Operations and Maintenance Pty Limited T/A UGL

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established