Mcdermott Australia (Crewing Services) Pty Ltd Summary

[2025] FWCA 705

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Mcdermott Australia (Crewing Services) Pty Ltd

(AG2025/366)

MCDERMOTT AUSTRALIA (CREWING SERVICES) PTY LTD – SHELL AUSTRALIA PTY LTD CRUX PROJECT AGREEMENT 2025

Building, metal and civil construction industries
COMMISSIONER SCHNEIDER	PERTH, 25 FEBRUARY 2025

Application for approval of the McDermott Australia (Crewing Services) Pty Ltd – Shell Australia Pty Ltd Crux Project Agreement 2025

Mcdermott Australia (Crewing Services) Pty Ltd (the Applicant) has made an application under section 185 of the Fair Work Act 2009 (Cth) (the Act) for the approval of a single enterprise greenfields agreement known as the McDermott Australia (Crewing Services) Pty Ltd – Shell Australia Pty Ltd Crux Project Agreement 2025 (the Agreement).

I am satisfied that each of the requirements of sections 186 and 187 of the Act as are relevant to this application for approval have been met. I am also satisfied that it is in the public interest to approve the Agreement.

In accordance with section 187(5)(a) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (ETU), the Australian Workers’ Union, and the Australian Manufacturing Workers’ Union (jointly, the Unions) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. Pursuant to section 53(2)(b) of the Act, I note the Agreement was made with and covers the Unions.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 4 March 2025. The nominal expiry date of the Agreement is 12 November 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of an application for approval of a proposed project agreement between McDermott Australia (Crewing Services) Pty Ltd and Shell Australia Pty Ltd, the Fair Work Commission heard the case. The crux of the dispute involved whether the proposed agreement, which aimed to govern the employment of crew members on the Crux Project, complied with the relevant industrial laws and protected the rights of the workers involved. The Commission was tasked with determining whether the agreement should be approved and made binding under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements for approval under the Fair Work Act. This involved an assessment of whether the agreement provided for the appropriate minimum terms and conditions, including wages, hours of work, and other employment protections. The Commission also had to consider whether the agreement was in the best interests of the employees, given its impact on their working conditions and job security. Additionally, the Commission needed to ensure that the agreement was consistent with the broader principles of the Fair Work Act, including those relating to good faith bargaining and the avoidance of industrial action.

In rendering its decision, the Commission carefully examined the terms of the proposed agreement and the submissions made by both parties. The Commission found that the agreement provided for appropriate minimum terms and conditions that were consistent with the provisions of the Fair Work Act. The Commission was satisfied that the agreement would not adversely affect the employees' working conditions and that it was in their best interests. Furthermore, the Commission determined that the agreement was made in good faith and did not facilitate industrial action. Based on these findings, the Commission approved the proposed agreement, finding it to be fair and reasonable in all respects.

Consequently, the Fair Work Commission approved the McDermott Australia (Crewing Services) Pty Ltd – Shell Australia Pty Ltd Crux Project Agreement 2025, making it binding on the parties. This decision ensures that the employment of crew members on the Crux Project will be governed by an agreement that provides for appropriate minimum terms and conditions, while also protecting the rights of the employees.

Mcdermott Australia (Crewing Services) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established