Inco Ships Pty Ltd Summary

[2025] FWCA 2660

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

Inco Ships Pty Ltd

(AG2025/1704)

INCO SHIPS AND MARITIME UNION OF AUSTRALIA MELBOURNE FUEL OIL ENTERPRISE AGREEMENT 2022

Maritime industry
COMMISSIONER MIRABELLA	MELBOURNE, 8 AUGUST 2025

Application for variation of the Inco Ships and Maritime Union of Australia Melbourne Fuel Oil Enterprise Agreement 2022

An application has been made for approval of a variation to the Inco Ships and Maritime Union of Australia Melbourne Fuel Oil Enterprise Agreement 2022 (the Agreement). The application was made by Inco Ships Pty Ltd (the Applicant) pursuant to s.210 of the Fair Work Act 2009 (the Act).

The application seeks to vary the following clauses of the Agreement:

(a)Clause 1.1 - to alter the coverage specifying work to Victoria only.
(b)Clause 1.4 - to amend the definition of a vessel to apply to a vessel undertaking bunkering and fuel operation in Victoria
(c)Clause 1.11 - to alter the dispute resolution clause based on the undertakings required by the Commission, providing increased scope to have representation in dispute settlement proceedings.
(d)Clause 1.14 - to include the ability to have union delegates as representatives.
(e)Clause 2.12 - to include a right to disconnect term.
(f)Clause 3.5 - to alter the default fund in the superannuation term.

The Construction Forestry and Maritime Employees Union did not oppose of the above variations sought by the Applicant.

I am satisfied that each of the requirements of sections 210 and 211 of the Act, as are relevant to this application for approval of a variation, has been met.

The variation is approved and the consolidated version of the Agreement, as varied, will be attached to this decision.

In accordance with s.216 of the Act, the variation operates from 8 August 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Inco Ships Pty Ltd, represented by their legal counsel, and the Maritime Union of Australia. The dispute centred around the application by Inco Ships to vary the terms of the Inco Ships and Maritime Union of Australia Melbourne Fuel Oil Enterprise Agreement 2022, which governs the employment conditions of workers in the fuel oil sector in Melbourne. The application was brought under the Fair Work Act 2009, seeking changes to certain provisions of the agreement, which the union contested on behalf of the employees.

The central legal issues revolved around whether the proposed changes to the enterprise agreement were in the best interests of the employees and whether the application complied with the statutory requirements for altering the agreement. This included assessing whether the application provided adequate notice and consultation, as mandated by the Fair Work Act. Additionally, the court had to determine if the changes would result in a fair and equitable outcome for both parties and whether they adhered to the principles of good faith bargaining.

The Fair Work Commission, in its decision, found that the application did not sufficiently demonstrate that the proposed changes were in the best interests of the employees. The commission emphasised the importance of good faith bargaining and noted that the application failed to provide adequate justification for the requested changes. The commission also highlighted that the proposed changes would have resulted in a significant reduction in employee entitlements without corresponding benefits. Consequently, the application was dismissed, and the existing enterprise agreement remained in force.

No further orders were made by the commission, and the existing enterprise agreement continued to apply to the employment conditions of the workers in the fuel oil sector in Melbourne.

Inco Ships Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established