Wood Australia Pty Ltd T/A Wood Australia

[2022] FWCA 117

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Wood Australia Pty Ltd T/A Wood Australia

(AG2021/9037)

Wood Offshore Maintenance Services Greenfields Agreement 2021

Oil and gas industry
DEPUTY PRESIDENT EASTON	SYDNEY, 14 JANUARY 2022

Application for approval of the Wood Offshore Maintenance Services Greenfields Agreement 2021.

Wood Australia Pty Ltd T/A Wood Australia (the Employer) has made an application for the approval of the Wood Offshore Maintenance Services Greenfields Agreement 2021 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise greenfields agreement.

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.

I note that Clause 12.1 – Ordinary Hours of Work is potentially inconsistent with the National Employment Standards (NES). Noting the NES precedence clause at 6.2 in the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Workers’ Union (AWU) was a bargaining representative for the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the AWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 January 2022. The nominal expiry date of the Agreement is 14 January 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Wood Australia Pty Ltd, trading as Wood Australia, sought approval for the Wood Offshore Maintenance Services Greenfields Agreement 2021 from the Fair Work Commission. The dispute centred on whether the proposed agreement met the necessary standards under the Fair Work Act 2009, particularly regarding the terms and conditions of employment for the workers covered by the agreement. The matter was heard in the Fair Work Commission, which is tasked with overseeing and approving enterprise agreements under Australian labour law.

The key legal issues before the Commission were whether the agreement was genuinely an enterprise agreement, whether it provided for the proper protection of employee entitlements, and whether it met the "better off overall test" (BOOT) which requires that employees be no worse off financially under the new agreement than they would be under the applicable award or existing agreement. The Commission also had to consider whether the agreement included adequate provisions for the protection of employees' working conditions and whether it complied with the requirements set out in the Fair Work Act.

The Commission found that the Wood Offshore Maintenance Services Greenfields Agreement 2021 met the statutory requirements for an enterprise agreement. It was determined that the agreement provided for the proper protection of employee entitlements and met the BOOT. The Commission was satisfied that the agreement contained adequate provisions for the protection of working conditions and that it complied with the relevant provisions of the Fair Work Act. Consequently, the application for approval of the agreement was granted.

The Commission approved the Wood Offshore Maintenance Services Greenfields Agreement 2021, effective from the date of the decision. The agreement now binds the parties and applies to the relevant employees, establishing the terms and conditions of their employment as per the approved terms.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established