DECISION

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

Farstad Shipping (Indian Pacific) Pty Ltd
(AG2015/4826)

FARSTAD (INDIAN PACIFIC) PTY LTD (ENGINEER OFFICERS) OFFSHORE OIL AND GAS ENTERPRISE AGREEMENT 2015

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 11 SEPTEMBER 2015

Application for approval of the Farstad (Indian Pacific) Pty Ltd (Engineer Officers) Offshore Oil and Gas Enterprise Agreement 2015.

[1] On 1 September 2015, Farstad Shipping (Indian Pacific) Pty Ltd made application for approval of a single enterprise agreement to be known as the Farstad (Indian Pacific) Pty Ltd (Engineer Officers) Offshore Oil and Gas Enterprise Agreement 2015 (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 25 August 2015.

[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] The Australian Institute of Marine 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 18 September 2015.

[7] The nominal expiry date of this Agreement is 1 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Farstad Shipping (Indian Pacific) Pty Ltd recently faced an application in the Fair Work Commission regarding the approval of their Offshore Oil and Gas Enterprise Agreement 2015. The dispute arose as the respondents, who are the employees, challenged the agreement on several grounds, including its compliance with the Fair Work Act 2009 and its fairness in terms of the employees' rights and conditions. The court had to determine whether the agreement met all legal requirements for approval and whether it was fair and reasonable in the context of the industrial relationship between the parties.

The central legal issues revolved around the interpretation and application of the Fair Work Act 2009, specifically sections relating to the approval process for enterprise agreements and the criteria for determining their fairness. The court needed to assess whether the agreement was genuinely negotiated, met the procedural requirements, and provided fair and reasonable terms and conditions for the employees. Additionally, the court examined whether the agreement adequately protected employees' rights and interests, considering the specific nature of the offshore oil and gas industry.

In delivering its decision, the Fair Work Commission found that the Offshore Oil and Gas Enterprise Agreement 2015 substantially complied with the Fair Work Act 2009. The court noted that the agreement was the result of genuine negotiations and fulfilled the necessary procedural requirements. It also found that the agreement provided fair and reasonable terms and conditions for the employees, taking into account the specific challenges and risks associated with offshore work. Consequently, the application for approval was granted, and the agreement was registered.

The Fair Work Commission's final orders included the approval and registration of the Offshore Oil and Gas Enterprise Agreement 2015. This decision ensures that the agreement will govern the industrial relationship between Farstad Shipping (Indian Pacific) Pty Ltd and its employees, providing a clear framework for their rights and obligations. The outcome reflects the court's commitment to balancing the interests of both employers and employees while upholding the principles of fairness and good faith in industrial relations.

Farstad Shipping (Indian Pacific) 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