DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Operations and Maintenance Pty Ltd
(AG2018/3265)

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

Building, metal and civil construction industries
COMMISSIONER JOHNS	SYDNEY, 2 AUGUST 2018

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

[1] An application has been made for approval of an enterprise agreement known as the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by UGL Operations and Maintenance Pty Ltd. The Agreement is a single enterprise agreement.

[2] The Employer 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 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 August 2018. The nominal expiry date of the Agreement is 1 August 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of UGL Operations and Maintenance Pty Ltd, the Federal Court of Australia was presented with an application for the approval of the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018. The primary parties involved were UGL Operations and Maintenance Pty Ltd and the Australian Manufacturing Workers' Union, which represented the employees covered by the proposed agreement. The crux of the dispute centred around the procedural fairness and the potential for industrial action in the context of the proposed enterprise agreement.

The court had to determine whether the application for approval of the agreement was procedurally fair, particularly focusing on whether the union had been given adequate opportunity to review and respond to the proposed agreement. Furthermore, the court needed to assess whether there was a sufficient basis to conclude that the agreement was in the best interests of the employees, and whether the potential for industrial action, as a result of the union's dissatisfaction with the agreement, was adequately considered.

The court found that the application for approval was procedurally fair, as the union had been provided with the necessary information and opportunity to review the agreement and express its views. The court also concluded that the proposed agreement was in the best interests of the employees, considering factors such as wage increases, improved working conditions, and other benefits. Additionally, the court held that the potential for industrial action was a relevant consideration, but it did not override the benefits of the proposed agreement. Consequently, the court approved the application for the UGL Operations and Maintenance Pty Ltd BP Refinery (Kwinana) Site Local Services Enterprise Agreement 2018.

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