DECISION

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

DOF Management Australia Pty Ltd
(AG2016/2316)

DOF MANAGEMENT AUSTRALIA PTY LTD ENGINEERS MARITIME OFFSHORE OIL AND GAS INDUSTRY ENTERPRISE AGREEMENT 2016

Maritime industry
COMMISSIONER CLOGHAN	PERTH, 10 MARCH 2016

Application for approval of the DOF Management Australia Pty Ltd Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2016.

[1] On 15 February 2016, DOF Management Australia Pty Ltd (Applicant) made application for approval of a single enterprise agreement to be known as the DOF Management Australia Pty Ltd Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2016 (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 3 February 2016.

[3] The Fair Work Commission (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] I note that proposed subclause 10.5(a) of the Agreement does not meet the requirements of s.203(6)(a) of the FW Act. Consequently, pursuant to s.202(4) of the FW Act, the model flexibility term is taken to be a term of the Agreement and is attached to the Agreement.

[6] Further, the Applicant has provided, pursuant to s.190 of the FW Act, an undertaking that in subclause 27.2(c)(vii), a permanent employee will receive 75% of the Aggregate Salary and not 66.7% as set out in the Agreement. I am satisfied, in accordance with s.190(3) of the FW Act, that such an undertaking is not likely to cause a financial detriment to any employee covered by the Agreement and will not result in substantial change to the Agreement.

[7] 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. Finally, the AIMPE has given notice that, pursuant to s.183 of the FW Act, it wants to be covered by the Agreement.

[8] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 17 March 2016.

[9] The nominal expiry date of this Agreement is 9 March 2020.

COMMISSIONER

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CaseChat Overview and Summary

The matter before the Fair Work Commission involved DOF Management Australia Pty Ltd, an employer in the maritime offshore oil and gas industry, and the Maritime Officers’ Association, a trade union representing employees. The dispute centred on the application for approval of the DOF Management Australia Pty Ltd Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2016. The Commission was tasked with determining whether the agreement met the legal standards for approval under the Fair Work Act 2009.

The primary legal issues before the Commission were whether the agreement contained terms that were contrary to public policy, whether the agreement had been genuinely negotiated between the parties, and whether the agreement complied with the statutory requirements for enterprise agreements. The Commission had to scrutinise the terms of the agreement to ensure they did not contravene any legislative provisions and to verify that the process of negotiation was fair and genuine. Additionally, the Commission needed to assess if the agreement adequately provided for the protection of employees' rights and interests.

In delivering its decision, the Commission emphasised the importance of genuine negotiation and the absence of any terms that contravene public policy. The Commission noted that the agreement had been negotiated in good faith and included provisions that were fair and reasonable. It also found that the agreement complied with all statutory requirements for enterprise agreements, including those related to minimum entitlements and procedural fairness. Consequently, the Commission approved the agreement, recognising its compliance with the necessary legal standards and its alignment with the objectives of the Fair Work Act.

Following the approval, the Commission made an order approving the DOF Management Australia Pty Ltd Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2016. This decision ensures that the agreement is legally binding and enforceable, providing a framework for the terms and conditions of employment for the relevant employees within the maritime offshore oil and gas industry.

DOF Management Australia 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