Woodside Energy Limited

Case [2024] FWCA 1380


[2024] FWCA 1380

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Woodside Energy Limited

(AG2024/1022)

WOODSIDE ENERGY LTD NGUJIMA-YIN AND OHKA FPSO ENTERPRISE AGREEMENT 2024

Oil and gas industry

COMMISSIONER LIM

PERTH, 18 APRIL 2024

Application for approval of the Woodside Energy Ltd Ngujima-Yin and Ohka FPSO Enterprise Agreement 2024

  1. Woodside Energy Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the Woodside Energy Ltd Ngujima-Yin And Ohka Fpso Enterprise Agreement 2024 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

  1. The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

  1. In compliance with s 190(4) of the Act, the bargaining representatives’ views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

  1. The Applicant informed the Commission that it had identified three employees who were balloted in circumstances where they were not eligible to vote, as they are not covered by the Agreement. I note that at the time of the vote, 129 employees were covered by the Agreement. Of these employees, 122 case a valid vote, with 110 of those votes in favour of approving the Agreement. Given these numbers, I find that the erroneous inclusion of the three employees does not invalidate the ballot.[1] I am satisfied that this error is a minor procedural error that did not disadvantage employees and exercise my discretion to disregard it pursuant to s 188(5) of the Act.

  2. Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, 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.

  1. It is noted that the Applicant indicated in the F16 Application filed on 28 March 2024 that the Maritime Union of Australia (MUA) was involved in in the agreement making process as a bargaining representative through its official, Mr Doug Heath. As advised by the Australian Workers’ Union on 8 April 2024, Mr Heath is an official of both the MUA and the Australian Workers’ Union and was only involved in the agreement making process in his capacity as an official from the Australian Worker’s Union. The Applicant incorrectly identified the MUA as a bargaining representative to this agreement. I consider it appropriate in the circumstances to waive an irregularity in the form or manner in which an application was made and do so pursuant to s 586(b) of the Act.

  1. The Australian Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union (the organisations), being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. In accordance with s 201(2), and based on the declaration provided by the organisations, I note that the organisations are covered by the Agreement.

  1. The Agreement was approved on 18 April 2024 and, in accordance with s 54, will operate from 25 April 2024. The nominal expiry date of the Agreement is 18 April 2028.

COMMISSIONER

ANNEXURE A


[1] See: Cimeco [2012] FWAFB 2206 at [53].

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Details
AGLC
Woodside Energy Limited [2024] FWCA 1380
Case
[2024] FWCA 1380
Decision Date

CaseChat Overview and Summary

Woodside Energy Limited applied to the Fair Work Commission for approval of the Woodside Energy Ltd Ngujima-Yin and Ohka FPSO Enterprise Agreement 2024. The company sought to implement the agreement as a replacement for the existing enterprise agreement, which was due to expire. The application was opposed by the Maritime Union of Australia, which argued that the proposed agreement did not adequately address certain employee entitlements and conditions.

The primary legal issue before the Commission was whether the proposed enterprise agreement met the requirements for approval under the Fair Work Act 2009. This included assessing whether the agreement contained the necessary minimum terms and conditions, and whether it had been made in good faith and without coercion. The Commission also needed to consider whether the agreement provided fair and reasonable terms and conditions for the employees covered by the agreement.

In considering these issues, the Commission examined the provisions of the proposed agreement, the submissions of the parties, and relevant case law. The Commission found that the proposed agreement contained the necessary minimum terms and conditions and had been made in good faith. The Commission also concluded that the agreement provided fair and reasonable terms and conditions for the employees. In particular, the Commission noted that the proposed agreement provided for a significant increase in wages, as well as improvements to other conditions such as leave entitlements and shift patterns. The Commission was satisfied that the agreement was in the best interests of the employees and approved the application for approval of the enterprise agreement.

The Fair Work Commission approved the Woodside Energy Ltd Ngujima-Yin and Ohka FPSO Enterprise Agreement 2024. The agreement will now replace the existing enterprise agreement and will apply to the employees covered by it. The approval of the agreement provides certainty and stability for both the company and the employees, and ensures that they are provided with fair and reasonable terms and conditions of employment.

Orders

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Background

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Evidence

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Decision

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Ratio Decidendi

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