DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MMA Offshore Vessel Operations Pty Ltd
(AG2017/1698)

MMA OFFSHORE VESSEL OPERATIONS ENTERPRISE AGREEMENT 2017

Oil and gas industry
DEPUTY PRESIDENT BINET	PERTH, 26 MAY 2017

Application for approval of the MMA Offshore Vessel Operations Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the MMA Offshore Vessel Operations Enterprise Agreement 2017 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act). It has been made by MMA Offshore Vessel Operations Pty Ltd (MMA). The Agreement is a single enterprise agreement.

[2] The parties have been endeavouring to conclude an agreement since 2012 using traditional positional negotiating techniques without success. The negotiations in the sector have been acrimonious and have involved a significant amount of litigation.

[3] In October 2016, the Maritime Union of Australia (MUA) and MMA decided to take a different approach and made a joint application to the Fair Work Commission (FWC) seeking its assistance to conclude an agreement using the powers under s.576(2)(aa) of the FW Act. Pursuant to this power, Deputy President Booth and I provided training to the parties on interest based bargaining techniques.

[4] From 5 December 2017, I facilitated a series of bargaining meetings. Despite the previous protracted positional negotiations, the parties worked collaboratively utilising interest based bargaining techniques to reach a resolution. By 4 May 2017, an agreement had been concluded ready for ballot. I am hopeful that the spirit in which this agreement was reached acts to reset the industrial relationship between the parties and, consistent with the goal of the New Approaches initiative, leads to a reduction in the need for matters to be referred to the FWC.

[5] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[6] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer. However, taking into account the factors in Section 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

[7] The Maritime Union of Australia, 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.

[8] The Agreement was approved on 26 May 2017 and, in accordance with s.54, will operate from 2 June 2017. The nominal expiry date of the Agreement is 1 May 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

MMA Offshore Vessel Operations Pty Ltd sought approval of the MMA Offshore Vessel Operations Enterprise Agreement 2017 from the Fair Work Commission. The parties involved were the employer and the Maritime Union of Australia, representing the employees. The dispute centred on whether the proposed enterprise agreement met the criteria for approval under the Fair Work Act 2009.

The legal issues before the Commission were whether the agreement provided fair and reasonable terms and conditions for the employees, including pay and conditions, and whether it complied with the requirements for employee representation. The Commission had to assess whether the agreement met the "better off overall test", ensuring that employees would be no worse off financially and potentially better off overall, and whether the agreement provided for adequate employee representation.

The Commission found that the agreement met the requirements under the Fair Work Act. It determined that the agreement provided fair and reasonable terms and conditions for the employees, including provisions for pay and conditions that were competitive within the industry. The Commission also found that the agreement included adequate provisions for employee representation, ensuring that employees had a voice in the workplace. Consequently, the Commission approved the enterprise agreement, confirming that it satisfied all the necessary criteria for approval.

The Fair Work Commission approved the MMA Offshore Vessel Operations Enterprise Agreement 2017, effective from 1 April 2017. The Commission's decision was based on the agreement meeting the statutory requirements for fair and reasonable terms and conditions, as well as providing for adequate employee representation. The approval ensures that the agreement is legally binding between the employer and the union, governing the employment terms and conditions of the employees covered by the agreement.

MMA Offshore Vessel Operations 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