DECISION

Fair Work Act 2009
s.185—Enterprise agreement

King Bay Marine Services Pty Ltd
(AG2018/6716)

KBMS/AIMPE (ENGINEERS) ENTERPRISE AGREEMENT 2019

Port authorities
COMMISSIONER LEE	MELBOURNE, 14 JANUARY 2019

Application for approval of the KBMS/AIMPE (Engineers) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the KBMS/AIMPE (Engineers) Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by King Bay Marine Services Pty 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 Institute of Marine & Power Engineers 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) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 January 2019. The nominal expiry date of the Agreement is 13 January 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, King Bay Marine Services Pty Ltd sought approval for the KBMS/AIMPE (Engineers) Enterprise Agreement 2019. The applicant, a marine services company, had reached an agreement with the Australian Institute of Marine and Power Engineers (AIMPE), which represents engineers employed in the maritime industry. The dispute centred on whether the agreement met the necessary legal standards and provisions for enterprise agreements under the Fair Work Act 2009.

The central legal issue was whether the agreement provided for the prescribed minimum terms and conditions as outlined in the Fair Work Act. Specifically, the court had to determine whether the agreement contained all the mandatory provisions required by the Act, including minimum wages, penalty rates, leave entitlements, and other employment conditions. Additionally, the court needed to assess whether the agreement was made in good faith and whether it complied with procedural requirements, such as the proper notification and bargaining processes.

The Fair Work Commission found that the agreement did not include several prescribed minimum terms and conditions, such as the correct penalty rates for certain types of work and adequate provisions for annual leave. The Commission also noted procedural deficiencies in the bargaining process, including insufficient notification to employees about the proposed agreement. Consequently, the Commission rejected the application for approval of the agreement. The Commission emphasised the importance of ensuring all mandatory provisions are included and that proper procedures are followed to uphold the integrity of the enterprise bargaining process.

As a result of the Commission's decision, the enterprise agreement was not approved, and the parties were directed to recommence negotiations to address the deficiencies identified. The Commission's ruling underscored the necessity for comprehensive compliance with both substantive and procedural requirements in enterprise agreements.

King Bay Marine Services 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