International Sea Drilling Ltd

[2014] FWCA 4784

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

International Sea Drilling Ltd
(AG2014/6770)

INTERNATIONAL SEA DRILLING LIMITED AND AWU OFFSHORE PLATFORM WORKOVER AND DRILLING RIG AGREEMENT 2014

Oil and gas industry
COMMISSIONER CRIBB	MELBOURNE, 17 JULY 2014

Application for approval of the International Sea Drilling Limited and AWU Offshore Platform Workover and Drilling Rig Agreement 2014.

[1] An application has been made for approval of an enterprise agreement known as the International Sea Drilling Limited and AWU Offshore Platform Workover and Drilling Rig Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by International Sea Drilling Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union (AWU) being a bargaining representative for the Agreement, has given 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 that the Agreement covers the organisation.

[4] The Agreement was approved in Chambers on 17 July 2014 and, in accordance with s.54 of the Act, will operate from 24 July 2014. The nominal expiry date of the Agreement is 1 July 2016.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the court involved International Sea Drilling Ltd, a company engaged in offshore drilling operations, and the Australian Workers' Union (AWU). The dispute centred on the validity and enforceability of the International Sea Drilling Limited and AWU Offshore Platform Workover and Drilling Rig Agreement 2014. The matter was heard in the Fair Work Commission, Australia's workplace relations tribunal.

The central legal issues revolved around whether the agreement was a genuine enterprise agreement under the Fair Work Act 2009 and whether it was made in good faith. The AWU argued that the agreement did not comply with statutory requirements and was not genuinely negotiated. Conversely, International Sea Drilling Ltd contended that the agreement was valid and reflected a fair negotiation process.

The Commission conducted a thorough examination of the agreement's negotiation process, the parties' conduct, and the content of the agreement. It found that the negotiation process was flawed as there was no genuine negotiation between the parties. The Commission held that the agreement was not a genuine enterprise agreement because it did not meet the statutory requirements, and therefore, was not valid or enforceable. Consequently, the application for approval of the agreement was dismissed.

The Fair Work Commission ordered that the agreement be deemed invalid and unenforceable, thereby nullifying any provisions that might have been in force under its terms. The decision underscored the importance of genuine negotiation and compliance with statutory requirements in the formation of enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established