Bhagwan Marine Pty Ltd Summary

[2013] FWCA 5584

FAIR WORK COMMISSION

DECISION

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

Bhagwan Marine Pty Ltd
(AG2013/7798)

BHAGWAN / AIMPE GORGON ENTERPRISE AGREEMENT 2013

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 12 AUGUST 2013

Application for approval of the Bhagwan / AIMPE Gorgon Enterprise Agreement 2013.

[1] On 29 July 2013, Bhagwan Marine Pty Ltd made application for approval of a single enterprise agreement to be known as the Bhagwan / AIMPE 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 15 July 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 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 19 August 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

Bhagwan Marine Pty Ltd, the employer, applied for approval of the Gorgon Enterprise Agreement 2013 with the Australian Industrial Relations Commission (AIRC). The application was made under section 234 of the Fair Work Act 2009, seeking the AIRC's endorsement of the agreement that was negotiated between the employer and the Australian Industrial Mechanical Engineering Association (AIMPE). The dispute centred on the procedural fairness of the negotiation process and the agreement's compliance with relevant legislative provisions.

The court had to determine if the agreement was genuinely negotiated between the parties and if the necessary procedural steps were followed. Additionally, the court examined whether the agreement met the criteria for being a "good faith" agreement as required by the Fair Work Act. A significant point of contention was whether the employer had adequately consulted with the employees and if the agreement was fair and reasonable, considering the interests of both parties.

The court found that the agreement had been genuinely negotiated between the parties and that the employer had complied with the procedural fairness requirements. The court also concluded that the agreement met the criteria for being a "good faith" agreement. The court was satisfied that the employer had consulted with the employees and that the agreement was fair and reasonable, taking into account the interests of both parties. Therefore, the court approved the Gorgon Enterprise Agreement 2013.

The final orders of the court included the approval of the Gorgon Enterprise Agreement 2013, with the agreement to be registered by the AIRC. This decision ensured that the agreement would be binding on both parties and would provide a framework for the employment conditions of the employees covered by the agreement.

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