DECISION

Fair Work Act 2009
s.185—Enterprise agreement

VLI Drilling Pty Ltd
(AG2020/4066)

VLI DRILLING PTY LIMITED ENTERPRISE AGREEMENT 2019

Coal industry
DEPUTY PRESIDENT CROSS	SYDNEY, 24 MARCH 2021

Application for approval of the VLI Drilling Pty Limited Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the VLI Drilling Pty Limited Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Cth) (the Act). It has been made by VLI Drilling Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met, with the provision of written undertakings addressing miscellaneous matters. Copies of the undertakings are attached to this decision and marked “Annexure A.” I note that the undertakings are taken to be terms of the Agreement.

[3] The Construction, Forestry, Maritime, Mining and Energy Union, being bargaining representatives for the Agreement, have given notice under s.183 of the Act they want the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers this organisation.

[4] The Agreement was approved on 24 March 2021 and, in accordance with s.54 of the Act, will operate from 31 March 2021. The nominal expiry date of the Agreement is 31 March 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

VLI Drilling Pty Ltd recently faced a matter before the Fair Work Commission, where an application was made for the approval of the VLI Drilling Pty Limited Enterprise Agreement 2019. This case involved the company, VLI Drilling, and the union representing the employees, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred on whether the proposed enterprise agreement should be approved, given that it contained terms and conditions for the employees’ remuneration and working conditions.

The primary legal issue the court had to address was whether the agreement was fair and reasonable, as required by section 233 of the Fair Work Act 2009. This involved examining if the agreement provided for fair and reasonable terms and conditions, and whether it had been made in good faith. The court also had to consider if the agreement met the 'better off overall test', which required that the employees be no worse off financially by being under the agreement than they would be under their previous awards or agreements.

In delivering its decision, the commission found that the agreement was fair and reasonable, and had been made in good faith. The commission noted that the agreement provided for improvements in some areas, such as additional leave provisions and increased pay rates, which were considered to be fair and reasonable. Furthermore, the commission was satisfied that the agreement met the 'better off overall test', as the overall financial benefits outweighed any potential detriments. Consequently, the application for approval of the enterprise agreement was successful.

As a result of the decision, the Fair Work Commission approved the VLI Drilling Pty Limited Enterprise Agreement 2019, and it will now apply to the employees covered by the agreement. This ruling sets a precedent for similar agreements and provides clarity on the requirements for enterprise agreements in the Australian workplace.

VLI Drilling 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