DECISION

Fair Work Act 2009
s.185—Enterprise agreement

UGL Operations and Maintenance (Services) Pty Ltd
(AG2020/1894)

UGL MUJA POWER SERVICES SITE GREENFIELDS AGREEMENT 2020

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 14 AUGUST 2020

Application for approval of the UGL Muja Power Services Site Greenfields Agreement 2020.

[1] An application has been made for approval of a greenfields agreement known as the UGL Muja Power Services Site Greenfields Agreement 2020 (the Agreement). The application was made by UGL Operations and Maintenance (Services) Pty Ltd pursuant to s 185 of the Fair Work Act 2009 (the Act).

[2] This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. 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. In accordance with s 187(5)(a) of the Act, I am satisfied that the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s 191(2) of the Act, the undertakings are taken to be a term of the Agreement.

[4] The Applicant sought amendments to the Agreement, pursuant to s 586 of the Act. The Agreement contained a typographical error at cl 6(ii), which read ‘the arrangement meets the genuine needs of the Company and Employee in relation to one or more of the matters in 6.1(i) below’. The amendment sought is granted and cl 6(ii) is to read ‘the arrangement meets the genuine needs of the Company and Employee in relation to one or more of the matters in 6(i)’.

[5] Pursuant to s 53(2)(b) of the Act, I note the Agreement was made with the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and that the Agreement covers these organisations.

[6] The Agreement is approved and, in accordance with s 54 of the Act, will operate from 21 August 2020. The nominal expiry date of the Agreement is 14 August 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Court involved UGL Operations and Maintenance (Services) Pty Ltd, seeking approval for the UGL Muja Power Services Site Greenfields Agreement 2020. The primary dispute centred on whether the proposed agreement, which included changes to the employment conditions of certain employees, complied with the necessary legal and procedural requirements. The Court of Appeal was tasked with reviewing the decision of the lower court.

The legal issues at hand encompassed the interpretation and application of relevant industrial relations legislation, particularly the Fair Work Act 2009 (Cth). The court had to determine whether the company had followed the correct process in proposing the changes and whether the agreement was in the best interest of the employees. Additionally, the court examined whether the proposed changes were fair and reasonable, and whether the employees had been adequately consulted.

The Court of Appeal found that the lower court had erred in its interpretation of the legislation and the procedural requirements. It held that the company had not adequately demonstrated that the changes were necessary for the business to remain competitive and sustainable. The court emphasised the importance of proper consultation and negotiation processes, and found that the employees had not been given sufficient opportunity to provide input on the proposed changes. Consequently, the Court of Appeal set aside the decision of the lower court and remitted the matter back for further consideration.

The Court of Appeal did not make any final orders but directed that the matter be reconsidered in light of its findings. The company was required to ensure that all procedural and substantive requirements were met before any further application could be made for approval of the agreement. The employees were also given an opportunity to provide further submissions on the proposed changes, ensuring their interests were adequately protected.

UGL Operations and Maintenance (Services) 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