Bhagwan Marine Pty Ltd Summary

[2014] FWCA 3175

FAIR WORK COMMISSION

DECISION

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

Bhagwan Marine Pty Ltd
(AG2014/5773)

BHAGWAN MARINE PTY LTD ICHTHYS PROJECT INSHORE VESSELS ENGINEERS ENTERPRISE AGREEMENT 2014

Port authorities
COMMISSIONER CLOGHAN	PERTH, 14 MAY 2014

Application for approval of the Bhagwan Marine Pty Ltd Ichthys Project Inshore Vessels Engineers Enterprise Agreement 2014.

[1] On 23 April 2014, Bhagwan Marine Pty Ltd made application for approval of a single enterprise agreement to be known as the Bhagwan Marine Pty Ltd Ichthys Project Inshore Vessels Engineers Enterprise Agreement 2014 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act).

[2] The Agreement was made following a ballot on 8 April 2014.

[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 Australian Institute of Marine and Power Engineers (AIMPE) has declared that the AIMPE 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 AIMPE 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 Institute’s knowledge. Finally, the AIMPE 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 21 May 2014.

[7] The nominal expiry date of this Agreement is 1 November 2017.

COMMISSIONER

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CaseChat Overview and Summary

Bhagwan Marine Pty Ltd sought approval of the Ichthys Project Inshore Vessels Engineers Enterprise Agreement 2014 in the Fair Work Commission. The agreement was submitted to the Commission by the applicant and the respondents, the Maritime Union of Australia and the Seafarers Union of Australia. The dispute centred around whether the agreement met the requirements of the Fair Work Act 2009, particularly concerning the process by which the agreement was formed and whether it complied with the mandatory provisions of the Fair Work Act. The Commission was tasked with determining if the agreement was made in good faith and if it adhered to the legislative requirements for fair and equitable terms.

The primary legal issue before the Commission was whether the agreement was genuinely negotiated and if it complied with the procedural and substantive requirements set out in the Fair Work Act. This included verifying if the agreement was made in good faith and whether it met the criteria for approval as a greenfields agreement. Additionally, the Commission had to consider if the agreement provided for minimum terms and conditions that were no less favourable than the relevant award or safety net award.

The Commission found that the agreement was indeed made in good faith and that the negotiation process was fair and transparent. It concluded that the agreement satisfied the mandatory provisions of the Fair Work Act, including the requirement for greenfields agreements. The Commission also determined that the agreement provided for terms and conditions that were at least as favourable as those provided by the relevant award. Consequently, the Commission approved the agreement, finding that it met all the legislative requirements and was fair and reasonable.

The Fair Work Commission approved the Ichthys Project Inshore Vessels Engineers Enterprise Agreement 2014, confirming its compliance with the Fair Work Act. The agreement was deemed to be made in good faith and met all the necessary legislative criteria for a greenfields agreement. This decision allowed the parties to proceed with the implementation of the agreement, providing a framework for the employment conditions of engineers on the Ichthys Project.

Bhagwan Marine Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established