UGL Operations & Maintenance Pty Ltd Summary

[2014] FWCA 304

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

UGL Operations & Maintenance Pty Ltd
(AG2013/12082)

UGL OPERATIONS & MAINTENANCE PTY LTD NSW SHELL FACILITIES ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 13 JANUARY 2014

Application for approval of the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. As required by s.201(2) I note that the Agreement covers those organisations.

[4] The Agreement is approved. In accordance with s.54(1) it will operate from 20 January 2014. The nominal expiry date of the Agreement is31 August 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

UGL Operations & Maintenance Pty Ltd applied to the Fair Work Commission for approval of the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013. The applicant was a subsidiary of UGL Limited and operated facilities in New South Wales. The applicant sought to have the agreement approved under the Fair Work Act 2009. The application was contested by the Maritime Union of Australia, who argued that the agreement did not meet the requirements of the Act.

The central legal issues before the Commission were whether the agreement was a "direct substitution agreement" and whether it complied with the "better off overall test." A direct substitution agreement requires that the terms of the agreement directly substitute the terms of the relevant award or awards. The Commission examined whether the agreement provided for terms and conditions that were directly substituted for the terms and conditions of the relevant award. The Commission also considered whether the agreement complied with the better off overall test, which requires that employees be no worse off financially under the agreement than they would be under the relevant award.

The Commission found that the agreement was a direct substitution agreement and that it complied with the better off overall test. The Commission noted that the agreement provided for terms and conditions that were directly substituted for the terms and conditions of the relevant award. The Commission also found that the agreement provided for a number of improvements to the employees' conditions, including increases in pay rates, improvements to leave entitlements, and the introduction of a new redundancy payment. The Commission concluded that the agreement met the requirements of the Act and approved the agreement.

The Commission ordered that the UGL Operations & Maintenance Pty Ltd NSW Shell Facilities Enterprise Agreement 2013 be approved and registered under the Fair Work Act 2009. The agreement came into effect on the first day of the first agreed pay period after the registration of the agreement. The agreement was to apply to employees who were employed by the applicant on the date of registration and to all employees who were subsequently employed by the applicant. The Commission's decision was final and binding on all parties.

UGL Operations & Maintenance Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established