DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Wood Group PSN Australia Pty Ltd
(AG2015/6677)

WOOD GROUP PSN (LYTTON REFINERY -QLD) MECHANICAL AGREEMENT 2015 - 2017

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 25 NOVEMBER 2015

Application for approval of the Wood Group PSN (Lytton Refinery -QLD) Mechanical Agreement 2015 - 2017.

[1] An application has been made for approval of an enterprise agreement known as the Wood Group PSN (Lytton Refinery –QLD) Mechanical Agreement 2015-2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Wood Group PSN Australia 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] 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) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 25 November 2015 and, in accordance with s.54, will operate from 2 December 2015. The nominal expiry date of the Agreement is 1 June 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by Wood Group PSN Australia Pty Ltd for the approval of the Wood Group PSN (Lytton Refinery - QLD) Mechanical Agreement 2015 - 2017. The applicant sought the approval of this enterprise agreement, which was negotiated with the Queensland Trades & Labour Council. The dispute centred on the terms of the agreement and whether it complied with the relevant provisions of the Fair Work Act 2009. The Commission was tasked with determining whether the agreement met the requirements for approval under the legislation.

The primary legal issue before the Commission was whether the agreement satisfied the procedural and substantive requirements for approval under section 230 of the Fair Work Act. Procedurally, the Commission needed to ascertain whether the agreement was made in accordance with the Act, including whether the requisite majority of employees had been consulted and whether the agreement had been fairly and properly negotiated. Substantively, the Commission had to consider whether the terms of the agreement complied with the provisions of the Act, such as ensuring that the agreement did not unfairly disadvantage employees.

In delivering its decision, the Fair Work Commission found that the agreement had been made in accordance with the procedural requirements of the Act. The Commission was satisfied that the requisite majority of employees had been consulted and that the agreement had been negotiated in good faith. Furthermore, the Commission determined that the agreement did not contain any terms that were contrary to the public interest or that would otherwise be unfair to employees. The Commission also found that the agreement provided for fair and reasonable terms and conditions of employment, including provisions for wages, hours of work, and other employment-related matters.

The Fair Work Commission approved the Wood Group PSN (Lytton Refinery - QLD) Mechanical Agreement 2015 - 2017, determining that it complied with the requirements of the Fair Work Act. The Commission certified the agreement, which will now apply to the employees of Wood Group PSN Australia Pty Ltd at the Lytton Refinery in Queensland. The certification of this agreement ensures that the terms and conditions of employment for the relevant employees are governed by the provisions of the agreement, subject to any applicable awards or other industrial instruments.

Wood Group PSN Australia 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