DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Australian Offshore Solutions Pty Ltd
(AG2021/4271)

AOS PTY LTD AND MUA OFFSHORE OIL AND GAS ENTERPRISE AGREEMENT 2021

Maritime industry
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 12 APRIL 2021

Application for approval of the AOS Pty Ltd and MUA Offshore Oil and Gas Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the AOS Pty Ltd and MUA Offshore Oil and Gas Enterprise Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Australian Offshore Solutions 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] The Construction, Forestry, Maritime, Mining and Energy 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) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 12 April 2021 and, in accordance with s.54, will operate from 19 April 2021. The nominal expiry date of the Agreement is 10 October 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Australian Offshore Solutions Pty Ltd, the Fair Work Commission was tasked with considering the application for approval of the AOS Pty Ltd and MUA Offshore Oil and Gas Enterprise Agreement 2021. The application arose as a result of negotiations between the applicant employer, Australian Offshore Solutions Pty Ltd, and the Maritime Union of Australia, which had resulted in the proposed enterprise agreement. The primary dispute centred around the terms of the agreement, including issues such as employee entitlements, working conditions, and dispute resolution mechanisms. The Commission's role was to ensure that the agreement complied with relevant legislative provisions and met the necessary standards for approval.

The legal issues before the Commission included whether the proposed agreement met the statutory requirements under the Fair Work Act 2009, including the obligation to provide for fair and reasonable terms and conditions. The Commission also needed to determine if the agreement adequately provided for the protection of employees' interests, particularly in relation to redundancy and termination provisions. Furthermore, the Commission examined whether the agreement was made in good faith and whether it complied with the procedural fairness principles. The Commission had to consider submissions from both parties and any relevant evidence provided to make its determination.

Upon reviewing the evidence and submissions, the Fair Work Commission determined that the proposed agreement did not meet the necessary standards for approval. The Commission found that certain provisions regarding redundancy payments were not fair and reasonable, as they did not adequately protect employees' interests in line with the objectives of the Act. Additionally, the Commission noted procedural deficiencies in the agreement process, which did not comply with the principles of procedural fairness. Consequently, the application for approval was dismissed, and the agreement was not certified. The Commission's decision emphasised the importance of ensuring that enterprise agreements provide fair and reasonable terms and conditions for employees while also adhering to the procedural requirements set out in the legislation.

The final orders of the Commission were that the application for approval of the AOS Pty Ltd and MUA Offshore Oil and Gas Enterprise Agreement 2021 be dismissed. The Commission directed that the agreement not be certified and provided both parties with an opportunity to make further submissions if they wished to address the identified issues and resubmit a revised agreement for consideration. This outcome underscores the critical role of the Commission in safeguarding the interests of employees and ensuring that enterprise agreements meet the statutory standards for approval.

Australian Offshore Solutions 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