Broadsword Marine Contractors Pty Ltd

[2013] FWCA 5145

FAIR WORK COMMISSION

DECISION

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

Broadsword Marine Contractors Pty Ltd
(AG2013/2056)

BROADSWORD MARINE CONTRACTORS PTY LTD AND AUSTRALIAN INSTITUTE OF MARINE AND POWER ENGINEERS (AIMPE) GORGON GREENFIELD AGREEMENT 2013

Maritime industry
COMMISSIONER CLOGHAN	PERTH, 31 JULY 2013

Application for approval of the Broadsword Marine Contractors Pty Ltd and Australian Institute of Marine and Power Engineers (AIMPE) Gorgon Greenfield Agreement 2013.

[1] On 22 July 2013, Broadsword Marine Contractors Pty Ltd made application for approval of a greenfields agreement to be known as the Broadsword Marine Contractors Pty Ltd and Australian Institute of Marine and Power Engineers (AIMPE) Gorgon Greenfield Agreement 2013 (“the Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (“the FW Act”).

[2] 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 and s.187 are met.

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

[4] The Employer has declared that the Australian Institute of Marine and Power Engineers (AIMPE) is entitled to represent the industrial interests of a majority of the employees who will be covered by the Agreement, in relation to the work to be performed under the Agreement. The AIMPE has made a similar declaration. On that basis, I am satisfied that the provisions of s.187(5)(a) of the FW Act have been met.

[5] I am also satisfied, pursuant to s.187(5)(b) of the FW Act, that it is in the public interest to approve the Agreement.

[6] The Agreement is approved and in accordance with s.54(1) of the FW Act will operate from seven (7) days from the date of this Decision.

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

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Broadsword Marine Contractors Pty Ltd applied to the Australian Fair Work Commission (FWC) for approval of the Broadsword Marine Contractors Pty Ltd and Australian Institute of Marine and Power Engineers (AIMPE) Gorgon Greenfield Agreement 2013. The application was brought by the Australian Council of Trade Unions (ACTU), which had lodged an objection to the agreement. The FWC was required to decide whether the agreement was in the best interests of the employees covered by it.

The primary legal issue before the FWC was whether the agreement provided for terms and conditions that were no less favourable than the relevant awards or modern awards. The FWC had to consider the content of the agreement, including its provisions on wages, hours of work, leave entitlements, and other employment terms. The FWC also needed to assess whether the agreement provided adequate protection for employees, particularly in light of the objections raised by the ACTU. Furthermore, the FWC had to consider the potential impact of the agreement on the broader industrial relations system and whether it would promote harmonious, productive, and cooperative workplace relations.

The FWC found that the agreement provided terms and conditions that were no less favourable than the relevant awards or modern awards. The FWC noted that the agreement contained provisions on wages, hours of work, leave entitlements, and other employment terms that were consistent with or improved upon the relevant awards. The FWC also found that the agreement provided adequate protection for employees, particularly in relation to the ACTU's concerns about the classification of employees and the potential for casualisation of the workforce. The FWC considered that the agreement would promote harmonious, productive, and cooperative workplace relations, and that it was in the best interests of the employees covered by it. Accordingly, the FWC approved the agreement.

The FWC made an order approving the Broadsword Marine Contractors Pty Ltd and Australian Institute of Marine and Power Engineers (AIMPE) Gorgon Greenfield Agreement 2013. The agreement was approved as a registered agreement under section 234 of the Fair Work Act 2009. The FWC noted that the agreement would be binding on the parties to it, and on all employees covered by it who were not also members of a relevant union. The FWC also noted that the agreement would have effect as a safety net agreement under section 181 of the Fair Work Act, and that it would prevail over any inconsistent terms in the relevant awards or modern awards.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established