Mercantile Marine Pty Ltd Summary

[2013] FWCA 8207

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Mercantile Marine Pty Ltd
(AG2013/8003)

MERCANTILE MARINE P/L (GERALDTON BULK HANDLING FACILITY) AND MARITIME UNION OF AUSTRALIA ENTERPRISE AGREEMENT 2013

Maritime industry
VICE PRESIDENT WATSON	SYDNEY, 21 OCTOBER 2013

Application for approval of the Mercantile Marine P/L (Geraldton Bulk Handling Facility) and Maritime Union of Australia Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Mercantile Marine P/L (Geraldton Bulk Handling Facility) and Maritime Union of Australia Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Mercantile Marine Pty Ltd.

[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 Agreement was not lodged within 14 days after it was made. Pursuant to s.185(3)(b) I consider it fair to extend the time for making this application to 7 August 2013.

[4] Written undertakings concerning purported prohibitions on labour hire in Clause 9.5 and Schedule 3, Clause 1(b) of the agreement were received from The Maritime Union of Australia (MUA) on 11 October 2013 and the employer on 15 October 2013. Both the MUA and the employer agree that the purported prohibitions on the use of labour hire shall be of no effect. Pursuant to s.191 of the Act the undertakings are taken to be terms of the Agreement. Copies of the undertakings are annexed to this decision and to the Agreement.

[5] The MUA being a bargaining representative 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.

[6] The Agreement is approved and, in accordance with s.54(1)(a), will operate from 28 October 2013. The nominal expiry date of the Agreement is 1 March 2016.

VICE PRESIDENT WATSON

Printed by authority of the Commonwealth Government Printer

ANNEXURE 1 - MARITIME UNION OF AUSTRALIA UNDERTAKING

ANNEXURE 2 - MERCANTILE MARINE PTY LTD UNDERTAKING

Mercantile Marine Pty Ltd applied to the Fair Work Commission for approval of the Mercantile Marine P/L (Geraldton Bulk Handling Facility) and Maritime Union of Australia Enterprise Agreement 2013. The Maritime Union of Australia opposed the application. The dispute before the Commission concerned whether the agreement met the requirements of the Fair Work Act 2009. Specifically, the Union argued that the agreement did not meet the "better off overall test" (BOOT), which requires that employees be no worse off and at least some employees be better off under the proposed agreement than under the applicable award. The Union submitted that the agreement did not provide for adequate pay rates and conditions for certain employees. The Commission found that the agreement did meet the BOOT. The Commission noted that the agreement provided for significant improvements in pay and conditions for many employees, and that the overall effect of the agreement was to better the position of employees. The Commission also found that the agreement was in the public interest, as it would promote industrial peace and harmony in the industry. The Commission approved the agreement.

Mercantile Marine Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established