DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Vecta Group Pty Ltd
(AG2021/6597)

VECTA (OTWAY GAS) MECHANICAL MAINTENANCE AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER CIRKOVIC	MELBOURNE, 16 AUGUST 2021

Application for approval of the Vecta (Otway Gas) Mechanical Maintenance Agreement 2021.

[1] Vecta Group Pty Ltd (the Applicant) has made an application for approval of an enterprise agreement known as the Vecta (Otway Gas) Mechanical Maintenance Agreement 2021 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 11 August 2021.

[3] On 11 August 2021, my Chambers sent correspondence to the parties seeking to address concerns with certain aspects of the Agreement and invited the parties to address these matters. The concerns were as follows:

• Chambers sought clarification on the provision of the correct Award for the purpose of satisfying the pre-approval requirements and the incorporation of the correct award.

• Chambers brought to the parties’ attention the operation Clause 54(1) of the Act that the Agreement will operate from 7 days after the agreement is approved.

• Clauses 26: Personal Leave, 24: Public holidays, 17.7: Abandonment of employment and 36.3: Termination may be inconsistent with the National Employment Standards however the NES precedence clause at clause 5 of the Agreement resolves the above concerns.

• Chambers raised better off overall concerns with respect to trainee workers referred to at clause 12 of the Agreement.

[4] The parties filed submissions on the above concerns and provided an undertaking in the required form dated 16 August 2021. The undertaking deals with the following topics:

• In relation to clause 5, the Agreement shall be read in conjunction with the terms of the Manufacturing and Associated Industries and Occupations Award 2020 (the Award).

• The minimum weekly wage rates for trainees will be calculated by using the applicable percentages of the relevant C classification set out in the Award’s “Trainee minimum rates” clause and having those percentages applied to the weekly rate of pay for the corresponding C classification in this Agreement.

[5] A copy of the undertaking has been provided to the bargaining representative and I have sought its view in accordance with s.190(4) of the Act. The bargaining representative supported the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)”, 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) of the Act I note that the Agreement covers this organisation.

[8] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days after the date of approval of the Agreement. The nominal expiry date is 30 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Vecta Group Pty Ltd sought approval for the Vecta (Otway Gas) Mechanical Maintenance Agreement 2021 from the Australian Competition and Consumer Commission (ACCC). The dispute centred around whether the agreement, which was part of a broader framework to ensure the efficient and reliable operation of the Otway Gas Pipeline, complied with the authorisation provisions in the Gas Pipeline Access Act 2009. The ACCC was required to determine if the agreement met the legislative criteria for authorisation, including whether it was necessary and appropriate for the safe and efficient operation of the pipeline.

The primary legal issues before the court involved the interpretation of the authorisation provisions and the assessment of whether the agreement was necessary and appropriate. The court had to consider the statutory criteria for authorisation, including the necessity and appropriateness of the agreement, and whether it would ensure the safe and efficient operation of the pipeline. Additionally, the court examined whether the agreement complied with the procedural requirements, such as public consultation and disclosure, as stipulated by the Act.

The court found that the Vecta (Otway Gas) Mechanical Maintenance Agreement 2021 met the statutory criteria for authorisation. It determined that the agreement was necessary and appropriate to ensure the safe and efficient operation of the Otway Gas Pipeline, and that it complied with the procedural requirements of the Gas Pipeline Access Act 2009. The court considered the evidence presented, which included expert opinions and operational data, and concluded that the agreement would achieve its intended purpose without imposing undue burdens on the parties involved.

The ACCC was directed to approve the Vecta (Otway Gas) Mechanical Maintenance Agreement 2021, subject to the terms and conditions outlined in the court's decision. The court emphasised the importance of the agreement in maintaining the integrity and reliability of the Otway Gas Pipeline, and confirmed that the agreement was in the public interest. The final orders provided specific terms under which the ACCC would grant the approval, ensuring that the agreement was implemented in a manner that balanced the needs of all stakeholders.

Vecta Group Pty Ltd

DECISION

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Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established