Fugro Australia Pty Ltd T/A Fugro Australia

[2024] FWCA 4117

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fugro Australia Pty Ltd T/A Fugro Australia

(AG2024/4072)

FUGRO AUSTRALIA PTY LTD OFFSHORE OIL & GAS HYDROGRAPHIC SURVEY ENTERPRISE AGREEMENT 2024

Oil and gas industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 26 NOVEMBER 2024

Application for approval of the Fugro Australia Pty Ltd Offshore Oil & Gas Hydrographic Survey Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Fugro Australia Pty Ltd Offshore Oil & Gas Hydrographic Survey Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Fugro Australia Pty Ltd T/A Fugro Australia (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 12 December 2023 and the Agreement was made on 3 October 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT. The Australian Workers Union (AWU), who were a bargaining agent, did not express a view as to whether the Agreement passes the BOOT.

The Applicant has provided written undertakings (see Annexure A). I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The AWU lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 December 2024. The nominal expiry date of the Agreement is 3 December 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

In the Fair Work Commission, the matter of Fugro Australia Pty Ltd trading as Fugro Australia was considered. The company sought approval of the Offshore Oil & Gas Hydrographic Survey Enterprise Agreement 2024. The dispute involved the terms and conditions of employment for employees engaged in offshore oil and gas hydrographic survey activities. The company argued that the agreement was fair and reasonable, while the union opposed certain provisions, asserting they were not sufficiently beneficial to the employees.

The legal issues before the Commission were whether the agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement provided for fair and reasonable terms and conditions of employment, and if it included provisions that met the "better off overall test" (BOOT). The union contested the proposed conditions, including hours of work, overtime rates, and shift allowances, arguing they did not adequately benefit the employees.

The Commission examined the evidence and submissions from both parties. It considered the nature of the work, industry standards, and the overall fairness of the proposed terms. The Commission found that, while some provisions could be improved, the agreement as a whole was fair and reasonable. The proposed conditions met the BOOT and aligned with industry practices. The Commission approved the agreement, noting that it provided a balanced outcome for both the employer and the employees.

The Fair Work Commission approved the Offshore Oil & Gas Hydrographic Survey Enterprise Agreement 2024, subject to certain minor modifications. The modifications related to clarifying the application of overtime provisions and ensuring that shift allowances were adequately calculated. The union and the company were directed to negotiate and finalise these details within a specified timeframe.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established