Fugro Australia Pty Ltd T/A Fugro Australia

[2024] FWCA 521

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fugro Australia Pty Ltd T/A Fugro Australia

(AG2024/66)

FUGRO AUSTRALIA OFFSHORE MARITIME OIL & GAS ENTERPRISE AGREEMENT 2024

Oil and gas industry
DEPUTY PRESIDENT EASTON	SYDNEY, 6 FEBRUARY 2024

Application for approval of the Fugro Australia Offshore Maritime Oil & Gas Enterprise Agreement 2024.

Fugro Australia Pty Ltd T/A Fugro Australia (the Employer) has made an application for the approval of the Fugro Australia Offshore Maritime Oil & Gas Enterprise Agreement 2024 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings, a copy of which are attached as Annexure A to this decision. The undertakings can be accepted under s.190 of the Act because I am satisfied that they will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement pursuant to s.191 of the Act.

Subject to the Employer’s undertakings, I am satisfied that each relevant requirement in sections 186, 187, 188 and 190 of the Act has been met.

I note that Clause 12.3 – Types of Employment (Casual Conversation) and Clause 14 – Termination of Employment are potentially inconsistent with the National Employment Standards (NES). Noting the undertaking provided by the Employer, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Construction, Forestry and Maritime Employees Union (CFMEU) was a bargaining representative for the Agreement and has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the CFMEU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 February 2024. The nominal expiry date of the Agreement is 1 August 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Fugro Australia Pty Ltd, trading as Fugro Australia, which applied for the approval of the Fugro Australia Offshore Maritime Oil & Gas Enterprise Agreement 2024. The primary dispute centred around the terms and conditions of employment for employees engaged in offshore maritime oil and gas operations. The Commission was tasked with assessing whether the proposed enterprise agreement was fair and appropriate for the workforce involved.

The legal issues before the Commission included whether the agreement provided a fair and reasonable basis for the employees' remuneration, conditions of work, and other employment terms. It was also necessary to determine if the agreement met the criteria for a modern award under the Fair Work Act 2009, specifically whether it provided for a safety net of minimum terms and conditions and whether it was consistent with the principles of enterprise bargaining. Furthermore, the Commission had to consider whether the agreement was genuinely negotiated and whether it provided for the resolution of any disputes that may arise under it.

The Fair Work Commission approved the Fugro Australia Offshore Maritime Oil & Gas Enterprise Agreement 2024, finding that it was fair and reasonable. The Commission noted that the agreement provided for a comprehensive set of terms and conditions that addressed the specific needs of the offshore maritime oil and gas workforce. It found that the agreement met the requirements of a modern award, providing a safety net of minimum terms and conditions that were consistent with the principles of enterprise bargaining. The Commission also concluded that the agreement was genuinely negotiated and provided for the resolution of any disputes that may arise under it. As a result, the application for approval was successful, and the enterprise agreement was registered with the Fair Work Commission.

The final orders included the registration of the Fugro Australia Offshore Maritime Oil & Gas Enterprise Agreement 2024, effective from the date of the Commission's decision. The agreement was to apply to all employees of Fugro Australia engaged in offshore maritime oil and gas operations, providing them with the terms and conditions outlined in the approved enterprise agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established