DECISION

Fair Work Act 2009
s.210—Enterprise agreement

UGL Operations and Maintenance Pty Ltd
(AG2019/37)

UGL OPERATIONS AND MAINTENANCE PTY LTD BP REFINERY (KWINANA) SITE LOCAL SERVICES ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 15 MAY 2019

Application for variation of the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018.

[1] Application has been made for approval of a variation to the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018 (the Agreement). The application was made by UGL Operations and Maintenance Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 2 August 2018. Those undertakings form part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 15 May 2019.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, UGL Operations and Maintenance Pty Ltd sought a variation to the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018. The applicant sought to alter the definition of “casual employee” to include employees engaged under fixed term contracts. UGL argued that the proposed variation was necessary to provide flexibility in its workforce, particularly in the context of fluctuating operational demands at the BP Refinery site. The Australian Manufacturing Workers Union opposed the application, contending that the changes would undermine employee security and potentially lead to the casualisation of the workforce.

The central legal issues before the Commission were whether the proposed changes to the definition of "casual employee" were consistent with the principles of the Fair Work Act 2009 and whether they served a legitimate workplace purpose. The Commission considered the broader implications of the proposed changes, including their impact on employee conditions and the principles of fairness and equity in the workplace. In assessing the application, the Commission needed to balance the employer's need for flexibility with the rights and protections afforded to employees under the enterprise agreement.

The Commission concluded that the proposed variation was not consistent with the principles of the Fair Work Act. The Commission found that the changes sought by UGL were not for a legitimate workplace purpose and would result in a significant reduction in job security and entitlements for employees. The Commission emphasised the importance of maintaining clear and fair definitions within enterprise agreements to protect employees from arbitrary changes to their employment conditions. As a result, the application for variation was dismissed. The decision underscored the Commission's commitment to ensuring that any changes to enterprise agreements are fair and do not undermine the protections afforded to employees.

UGL Operations and Maintenance Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established