Application by Chevron Australia Pty Ltd - [2023] FWC 2445

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Fair Work Act 2009  

s.240—Bargaining dispute 

s.576(2)(aa)—Promoting cooperative and productive workplace relations and preventing 

disputes 

 

Chevron Australia Pty Ltd 

v 

The Australian Workers’ Union, Communications, Electrical, Electronic, 

Energy, Information, Postal, Plumbing and Allied Services Union & Others 
 

(B2023/914 & B2023/916 & CW2023/4) 

COMMISSIONER RIORDAN PERTH, 21 SEPTEMBER 2023 

 

Alleged disputes concerning Chevron Australia Pty Ltd’s proposed Wheatstone Platform, 

Wheatstone Downstream LNG Plant & Gorgon Barrow Island enterprise agreements 

 

[1] The parties are on the precipice of achieving historical first enterprise agreements for 

these Chevron LNG facilities in Western Australia. To date, a large number of issues have been 

settled, on a without prejudice basis, which should form the foundation of enterprise agreements 

between the parties for the future. However, a failure to settle all of the outstanding issues will 

result in those agreed provisions simply evaporating. 

 

[2] In an attempt to resolve the bargaining dispute (B2023/914, B2023/916 & CW2023/4), 

I hereby issue the following recommendation in relation to the outstanding issues. 

 

[3] I note that this industry uses terminology which is industrially unique. A ‘turnaround’ 

is universally known as a ‘shutdown’ and an ‘overcycle payment’ is universally known as 

‘overtime’. 

 

Field Loading Allowance 

 

[4] The Field Loading Allowance is defined in the proposed agreements to be: 

 

“The Field Loading Allowance recognises and is in payment for all current and future 

aspects of work performed under this Agreement at Remote Work Locations. This 

includes (but is not limited to) the location and nature of the operation, travel to and 

from Remote Work Locations (including any delays), accommodation and conditions, 

all hardships and disabilities of the work, mobilisation and demobilisation impacts and 

relevant safety controls.” 

 

[2023] FWC 2445 

RECOMMENDATION 


AUSTRALIA FairWork Commission




 

https://www.fwc.gov.au/documents/decisionssigned/pdf/2023fwc2445.pdf


[2023] FWC 2445 

 

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[5] I note that Field Loading Allowance is paid to compensate employees for travel delays 

including issues associated with mobilisation and demobilisation. I accept that there is some 

benefit to increase the Field Loading Allowance to a rate which is competitive within the 

industry where employees experience a similar level of disability. As such, I recommend an 

allowance of $103,000 per annum be paid to employees of the Wheatstone Platform and 

$85,000 per annum to employees at the Gorgon and Wheatstone Downstream facilities. This 

increase also compensates employees for slight delays in travel arrangements. 

 

Classification Progression 

 

[6] The classification structure currently has a barrier for automatic progression at Level 4. 

I recommend that all employees be able to progress to level 5 based on the attainment and 

utilisation of the appropriate competencies. To this end, a committee will be established to work 

over the next 3 months to complete the list of competencies required to move from Level 4 to 

Level 5. If agreement cannot be reached, then either party can seek the assistance of the 

Commission to resolve any dispute. 

 

[7] If Chevron fails to deliver the relevant training or prevent an employee from reasonably 

obtaining these skills and competencies with a reasonable timeframe (24 months), then the 

Commission will determine an appropriate operative date for the reclassification of that 

employee. This date will become the operative date for any back payment once the employee 

has obtained the required competencies. The employee will have to substantiate their ongoing 

commitment to competency acquisition during this period. 

 

[8] An anomaly exists in relation to the appropriate remuneration level for Schedulers and 

Planners at Chevron. Traditionally, these employees are experienced tradespersons who would 

nominally fit into the classification structure between Level 4 and Level 5. I recommend that 

Schedulers and Planners be located within Levels 4 and 5 of the classification structure based 

on the eligibility criteria of the agreement and their skills, competence and training. 

 

Overcycle Payments 

 

[9] Work performed on demobilisation day, when it forms part of an employee’s 168 

normal hours of their swing, should not attract any form of penalty payment. However, any 

work performed beyond the employee’s normal cycle hours will attract a minimum payment of 

four hours pay at overcycle rates. Any work beyond four hours will be paid for a full shift at 

overcycle rates. 

 

[10] A significant disagreement between the parties relates to the late arrival of a plane into 

Perth airport on the last day of cycle. I note that the Field Loading Allowance is in part 

compensation for delays in the transportation of employees. However, this lateness has the 

capacity to cause an employee to miss a connecting flight to their place of residence. Where 

this delay can be attributed to Chevron, then it is appropriate and industry-standard for a penalty 

payment to be made to the affected employees. 

 

[11] If the plane is more than two hours late, i.e. it lands after 3:50 PM, then Chevron will 

be required to pay each employee 4 hours pay at overcycle rates. If the plane is more than 4 

hours late, then Chevron will be required to pay 12 hours pay at overcycle rates. If an employee 








[2023] FWC 2445 

 

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misses their connecting flight and cannot travel until the next day, then Chevron will pay for 

the employee’s accommodation and provide a per diem allowance of $34.95 for breakfast, 

$49.35 for lunch and $69.20 dinner, in accordance with Taxation Determination 2023/3. 

 

[12] The divisor utilised for the overcycle calculation has been appropriately calculated for 

those employees who will work the four by ten roster, Monday to Thursday. This calculation is 

based on the number of days worked per annum for those employees. There is no mathematical 

or industrial justification to utilise a divisor which does not correlate with the number of shifts 

these employees work in a year. It is not in dispute that these employees will work 208 shifts 

in a year. 

 

Cabins 

 

[13] In relation to cabins, it is not appropriate for cabins to be shared by employees in the 

2020’s when they are expected to obtain sufficient rest to ensure that fatigue is not an issue in 

their next twelve-hour shift. However, there will be exceptional circumstances which occur 

from time to time which require this practice to occur. Chevron will need to be able to justify 

the use of this practice. Any sharing of cabins should first occur with any contractors or labour 

hire workers before any direction is given to a Chevron employee to share accommodation. 

 

Hours of Work 

 

[14] The concept of employees being required to stay back and ‘complete a task’ is one which 

is open to managerial misapplication, particularly in circumstances where employees are 

rostered on a 24/7 basis. In order to prevent any abuse or misinterpretation of this phrase, the 

obligation upon an employee to compete a task after the expiry of their normal hours is limited 

to a requirement to make safe, or the time taken to undertake an appropriate handover to another 

employee of the same skill and competency, or in exceptional circumstances, to work with the 

rostered employee in order to facilitate the expeditious return of the plant to service. 

 

Travel Allowance for Training 

 

[15] Due to the vagaries of the operation of these plants, and the tightness of the manning 

levels, training cannot be accommodated during a normal cycle. This means training has to be 

undertaken outside of the normal work cycles. This may result in employees being required to 

attend Perth on the days before or after a cycle or to travel to Perth at times not associated with 

a cycle. I am of the view that an employee should be paid to travel to Perth to attend this training. 

For those employees who reside outside of Perth, they should receive flights, accommodation, 

a per diem as outlined in the ATO Taxation Determination and taxi fares to attend the training. 

Employees who reside within a six-hour drive of Perth would not be entitled to flights but 

instead would receive a kilometre allowance for driving their own car of $0.83 per kilometre 

from their place of residence to their training. This allowance includes any parking fees which 

may be incurred by the employee and has a maximum limit of $230 per trip. 

 

Salary Continuance  

 

[16] It is the parties’ current intention to establish a workplace consultative committee which 

will meet on a quarterly basis. Any change to the salary continuance policy should be subject 








[2023] FWC 2445 

 

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to review by the consultative committee. It is understood that Chevron will only modify this 

policy in a matter which can be sustained as being fair and reasonable. 

 

Job Security 

 

[17] The job security clause is a very important clause which acknowledges the current 

industry standard in relation to outsourcing. The only outstanding component of this provision 

is the actual number of employees to which it applies. I recommend that the parties adopt the 

actual numbers utilised by the AEC in the ballot for any future agreement. 

 

Travel 

 

[18] All employees will receive a $7,000 allowance. Employees who do not have Perth as 

their point of engagement will be paid an additional amount for all expenses associated with 

flights, accommodation, taxis and a per diem as outlined in the ATO Taxation Determination. 

Regional Western Australian employees will be paid for their accommodation and a per diem 

as outlined in the ATO Taxation Determination. 

 

Training 

 

[19] The traditional training provisions for Chevron employees over the last ten years have 

ranged from a full day’s pay for every day of training to zero payment for ten days of training 

a year. The parties provided a plethora of different proposals in relation to this issue. I 

recommend that employees be paid single time (consisting of Base and Field Loading 

Allowance) for the first eight days of training per year. Any additional training will be paid 

eight hours pay (consisting of Base and Field Loading Allowance) at overcycle rates. 

 

Panel Change 

 

[20] I accept that exceptional circumstances may require an employee to change panels. This 

panel change has the capacity to significantly modify an employee’s life. I recommend that 

Chevron give employees who are required to change panels 6 weeks’ notice. Any employee 

who swaps panels at the direction of Chevron will not be required to make up any shortfall to 

their cycle hours. 

 

Conclusion 

 

[21] In my view, the parties are close to achieving their desired outcome of registered 

enterprise agreements to cover the wages and employment conditions for employees working 

for Chevron at their three facilities in the north-west of Western Australia. The parties have 

been negotiating for these agreements for a long period of time and have spent countless hours 

at the negotiating table. These discussions have resulted in widespread agreement on the 

majority of provisions of the proposed enterprise agreements. It would be a very unfortunate 

circumstance if the parties did not utilise the good work that has been done during this period 

in adopting these agreed outcomes. It would be a pity and very frustrating to simply throw out 

these agreed positions and have the parties return to their respective logs of claims for any future 

arbitration. As a result, I strongly recommend that the parties adopt the recommendations given 

above which will hopefully resolve these disputes. 








[2023] FWC 2445 

 

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[22] As a result, the parties are required to advise my Chambers of the acceptance or rejection 

of this recommendation by 9:00 AM (AEST) on 22 September 2023.  

 

 

 

 

 

COMMISSIONER 

 

Printed by authority of the Commonwealth Government Printer 

 

PR76640 

 

 

Cases cited by this decision: