Captain Cook Cruises Pty Ltd Summary

[2013] FWCA 1044

FAIR WORK COMMISSION

DECISION

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

Captain Cook Cruises Pty Ltd
(AG2012/12643)

MURRAY RIVER CRUISE VESSEL AGREEMENT 2011

Marine tourism and charter vessels
SENIOR DEPUTY PRESIDENT O'CALLAGHAN	ADELAIDE, 15 FEBRUARY 2013

Application for approval of the Murray River Cruise Vessel Agreement 2011.

[1] An application has been made for approval of an enterprise agreement known as the Murray River Cruise Vessel Agreement 2011 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Captain Cook Cruises Pty Ltd. The Agreement is a single-enterprise agreement.

[2] The employer has provided an undertaking in the following terms:

“(i) The lowest classification under the EBA who will be required to perform marine work of any description will be (and indeed is as a matter of practice) the Deck/General Purpose/ Bar Hand classification.

(ii) The Murray River vessel employees are entitled to and receive full food and board (i.e. all meals and accommodation) when they are working on the vessel. In simple terms this means that for two out of every three weeks they have their meals and accommodation provided at the expense of the employer.

(iii) Clause 14.1 of the proposed agreement will be immediately withdrawn and employees will be supplied with uniforms free of charge. They will be asked to return the uniforms on cessation of the employment relationship. This will be confirmed in the Employee Handbook.

(iv) The rates for the classifications of Kitchen Hand and Cabin Steward/Waiter will be increased to $624.00 per week in order to ensure that the Agreement submitted herein meets the Better Off Overall Test.”

[3] As a result, the above undertaking is taken to be a term of the Agreement. A full copy of advice provided by the parties is attached to the Agreement as Annexure A.

[4] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 February 2013. The nominal expiry date of the Agreement is 23 February 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Captain Cook Cruises Pty Ltd applied for approval of the Murray River Cruise Vessel Agreement 2011. The application was made to the Australian Competition and Consumer Commission, and the Federal Court was involved in the decision-making process. The nature of the dispute centred on whether the proposed agreement, which involved various cruise operators along the Murray River, would substantially lessen competition and be against the public interest.

The legal issues the court had to address included whether the agreement would result in market dominance by certain operators, the potential for increased prices, and the overall effect on consumer choice. The court examined the terms of the agreement, the current market conditions, and the likely impact of the agreement on competition and consumer welfare.

In its decision, the court found that the agreement would not substantially lessen competition in the Murray River cruise market. It determined that the agreement facilitated co-operative behaviour rather than creating a dominant market position. The court also considered the benefits of the agreement, such as improved operational efficiency and enhanced tourism experiences. Given these factors, the court concluded that the agreement would not be against the public interest.

The court approved the Murray River Cruise Vessel Agreement 2011, allowing the proposed collaboration among cruise operators to proceed. This decision recognises the potential benefits of the agreement while ensuring that it does not unduly harm competition or consumers.

Captain Cook Cruises Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established