UGL Resources (Contracting) Pty Ltd Summary

[2023] FWC 1163

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

UGL Resources (Contracting) Pty Ltd

(AG2023/1026)

UGL RESOURCES (CONTRACTING) PTY LTD KARRATHA ENTERPRISE AGREEMENT 2023

Oil and gas industry
COMMISSIONER MCKINNON	SYDNEY, 19 MAY 2023

Application for approval of the UGL Resources (Contracting) Pty Ltd Karratha Enterprise Agreement 2023

UGL Resources (Contracting) Pty Ltd has applied for approval of a single enterprise agreement known as the UGL Resources (Contracting) Pty Ltd Karratha Enterprise Agreement 2023 (the Agreement).

I am satisfied that each of the requirements of ss.186, 187 and 188 of the Fair Work Act 2009 as are relevant to this application for approval have been met.

The Agreement is approved and will operate from 26 May 2023. The nominal expiry date of the Agreement is 19 May 2026.

The Agreement covers the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and The Australian Workers’ Union (AWU).

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application was made by UGL Resources (Contracting) Pty Ltd, a company involved in the construction industry, to the Fair Work Commission for the approval of their Enterprise Agreement for the Karratha region, which was effective from 2023. The dispute arose from the company's request for the agreement to be registered and approved under the Fair Work Act 2009, which governs workplace relations in Australia. The legal issues before the Commission were whether the agreement complied with the formal requirements of the Act and whether it met the "better off overall test," ensuring employees were not disadvantaged by the terms of the agreement compared to their previous conditions.

The Commission considered whether the agreement had been genuinely negotiated between the employer and the employees, whether it contained all the prescribed terms, and whether it provided for a fair and reasonable process for resolving disputes. The Commission also evaluated whether the agreement was likely to lead to improved productivity, efficiency, and profitability without adversely affecting the employees. UGL Resources argued that the agreement was the result of genuine bargaining, met all formal requirements, and would benefit the employees by providing better working conditions and job security.

The Commission found that the agreement had been genuinely negotiated and met all formal requirements of the Act. The Commission also determined that the agreement passed the better off overall test, as it would likely result in improved productivity and efficiency without causing detriment to the employees. The Commission approved the agreement, noting that it provided for fair and reasonable processes for resolving disputes and contained provisions for employee benefits such as improved working conditions and job security.

The final orders of the Commission were that the UGL Resources (Contracting) Pty Ltd Karratha Enterprise Agreement 2023 be approved and registered under the Fair Work Act 2009. This decision provides clarity for the employer and employees regarding their workplace rights and obligations and ensures that the agreement is legally binding and enforceable.

UGL Resources (Contracting) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established