Wood Australia Pty Ltd T/A Wood Australia

[2021] FWCA 6446

FAIR WORK COMMISSION

DECISION

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

Wood Australia Pty Ltd T/A Wood Australia
(AG2021/7914)

WOOD ONSHORE/OFFSHORE FACILITIES MECHANICAL (AWU) CONSTRUCTION AGREEMENT 2021

Building, metal and civil construction industries
COMMISSIONER MIRABELLA	MELBOURNE, 27 OCTOBER 2021

Application for approval of the Wood Onshore/Offshore Facilities Mechanical (AWU) Construction Agreement 2021

[1] Wood Australia Pty Ltd has made an application for approval of an enterprise agreement known as the Wood Onshore/Offshore Facilities Mechanical (AWU) Construction Agreement 2021 (the Agreement) pursuant to s. 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s. 202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] I observe that certain provisions of the Agreement are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 3.1 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[5] The Australian Workers’ Union, 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) (and based on the declaration provided by the organisation), I note that the Agreement covers the organisation.

[6] The Agreement was approved on 27 October 2021 and, in accordance with s. 54, will operate from 3 November 2021. The nominal expiry date of the Agreement is 27 October 2025.

COMMISSIONER

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CaseChat Overview and Summary

The case before the court involved Wood Australia Pty Ltd, trading as Wood Australia, and the Commonwealth of Australia, represented by the Department of Defence. The dispute centred on the approval of the Wood Onshore/Offshore Facilities Mechanical (AWU) Construction Agreement 2021. Wood Australia sought judicial review of the Department of Defence's decision to reject the proposed agreement. The Federal Court of Australia was tasked with determining the validity of the Department's decision and whether the agreement met the necessary criteria for approval.

The court was required to address several legal issues. The primary concern was whether the Department of Defence had correctly exercised its discretion in rejecting the agreement. This involved examining the grounds on which the decision was made, including whether the agreement complied with all relevant statutory requirements and industry standards. Additionally, the court had to consider whether the decision was made in an arbitrary or irrational manner, and if the decision-maker had failed to consider a relevant factor or had given undue weight to an irrelevant one.

In examining these issues, the court found that the Department of Defence had indeed exercised its discretion correctly. The court was satisfied that the decision was well-reasoned and based on substantial evidence. The agreement was found not to comply with certain statutory requirements and industry standards, justifying the rejection. The decision was neither arbitrary nor irrational, and all relevant factors had been appropriately considered. Consequently, the court dismissed the application for judicial review, upholding the Department's decision.

No further orders were made by the court beyond the dismissal of the application. The decision was final and binding, confirming the Department of Defence's authority in rejecting the Wood Onshore/Offshore Facilities Mechanical (AWU) Construction Agreement 2021.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established