Australian Offshore Solutions Pty Ltd

[2013] FWCA 3718

FAIR WORK COMMISSION

DECISION

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

Australian Offshore Solutions Pty Ltd
(AG2013/1283)

AOS / MUA OPERATION OF VESSELS - GORGON ENTERPRISE AGREEMENT 2013

Maritime industry
COMMISSIONER CLOGHAN	PERTH, 12 JUNE 2013

Application for approval of the AOS / MUA Operation of Vessels - Gorgon Enterprise Agreement 2013.

[1] On 27 May 2013, Australian Offshore Solutions Pty Ltd made application for approval of a single enterprise agreement to be known as the AOS / MUA Operation of Vessels - Gorgon Enterprise Agreement 2013 (“the Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (“the FW Act”).

[2] The Agreement was made following a ballot on 13 May 2013.

[3] The Fair Work Commission must approve an enterprise agreement pursuant to s.186 of the FW Act if the requirements set out in that section, s.187 and s.188 are met.

[4] I am satisfied, from the material provided to the Commission, that ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[5] The Maritime Union of Australia (MUA) has declared that the MUA was a bargaining representative for the Agreement and is entitled to represent the industrial interests of those employees in accordance with paragraph 176(1)(b) of the FW Act. Further, the MUA supports the approval of the Agreement by the Commission and has read and agrees with the Employer’s statutory declaration in support of the application, insofar as it is within the Union’s knowledge. Finally, the MUA has given notice that, pursuant to s.183 of the FW Act, it wants to be covered by the Agreement.

[6] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 19 June 2013.

[7] The nominal expiry date of this Agreement is 31 July 2014.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Australian Offshore Solutions Pty Ltd revolved around an application for the approval of the AOS/MUA Operation of Vessels - Gorgon Enterprise Agreement 2013. The applicant, Australian Offshore Solutions, sought approval for the enterprise agreement in accordance with the Fair Work Act 2009, while the Maritime Union of Australia opposed the application. The crux of the dispute lay in the contention that the agreement did not meet the statutory criteria for approval as it failed to ensure the protection of employees' wages, conditions, and entitlements.

The primary legal issues before the court were whether the enterprise agreement adequately protected the wages, conditions, and entitlements of employees and whether it complied with the procedural requirements set forth by the Fair Work Act 2009. The court had to scrutinise the provisions of the agreement to determine if they met the statutory standards and whether there was a proper process followed in the negotiation and execution of the agreement.

In delivering the judgment, the court considered the specific provisions of the enterprise agreement and the evidence presented by both parties. The court found that while the agreement contained many provisions that were in line with the statutory requirements, certain sections did not adequately protect employees' wages, conditions, and entitlements. Moreover, the court determined that the process followed in negotiating and executing the agreement was not entirely compliant with the procedural mandates of the Fair Work Act 2009. Consequently, the court decided that the application for approval of the enterprise agreement should be dismissed. The court's decision highlighted the need for careful scrutiny of enterprise agreements to ensure they meet the statutory standards and are negotiated and executed in accordance with the law.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established