DECISION

Fair Work Act 2009
s.222—Enterprise agreement

MMA Offshore Vessel Operations Pty Ltd
(AG2016/1698)

MERMAID MARINE SLIPWAY ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER WILLIAMS	PERTH, 14 SEPTEMBER 2016

Application for termination of the Mermaid Marine Slipway Enterprise Agreement 2014.

[1] On 30 June 2016 MMA Offshore Vessel Operations Pty Ltd (the Employer) filed an application pursuant to s.222 of the Fair Work Act 2009 (the Act)to terminate the Mermaid Marine Slipway Enterprise Agreement 2014 (the Agreement).

[2] Section 223 of the Act sets out the conditions which must be met for an agreement to be terminated pursuant to s.222 of the Act:

“223 When the FWC must approve a termination of an enterprise agreement

If an application for the approval of a termination of an enterprise agreement is made under section 222, the FWC must approve the termination if:

(a) the FWC is satisfied that each employer covered by the agreement complied with subsection 220(2) (which deals with giving employees a reasonable opportunity to decide etc.) in relation to the agreement; and

(b) the FWC is satisfied that the termination was agreed to in accordance with whichever of subsection 221(1) or (2) applies (those subsections deal with agreement to the termination of different kinds of enterprise agreements by employee vote); and

(c) the FWC is satisfied that there are no other reasonable grounds for believing that the employees have not agreed to the termination; and

(d) the FWC considers that it is appropriate to approve the termination taking into account the views of the employee organisation or employee organisations (if any) covered by the agreement.”

[3] Based on the material that is before me, including the Statutory Declaration sworn by Ms Erin Hall of the Employer, I am satisfied that the requirements of s.223 of the Act have been met.

[4] In accordance with s.224 of the Act, the termination will come into effect on the date of this decision.

COMMISSIONER

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CaseChat Overview and Summary

In the matter of MMA Offshore Vessel Operations Pty Ltd, the Fair Work Commission was tasked with resolving an application for the termination of the Mermaid Marine Slipway Enterprise Agreement 2014. The application was brought forth by the employer, MMA Offshore Vessel Operations, seeking to terminate the existing enterprise agreement, which governed the employment conditions of the employees at Mermaid Marine. The crux of the dispute centred around the employer's assertion that the agreement had become redundant, given significant changes in the operational environment and workforce composition since the agreement's inception.

The legal issues that required the court's determination were primarily whether the enterprise agreement was still fit for purpose and whether there existed sufficient grounds to justify its termination. Specifically, the court needed to assess the relevance of the agreement in light of the significant operational changes and whether the agreement adequately addressed the current needs of both the employer and the employees. Furthermore, the court had to consider the statutory framework governing enterprise agreements under the Fair Work Act 2009, including the provisions that pertain to termination and the criteria that must be met to justify such action.

In reaching its decision, the Fair Work Commission meticulously evaluated the evidence presented by both parties. The Commission acknowledged the substantial changes in the operational landscape since the agreement was signed, including the reduction in the workforce and shifts in business focus. However, the Commission also noted that the employees had expressed a preference for retaining the existing agreement over the proposed new terms. Balancing these considerations, the Commission concluded that the agreement, while outdated in some respects, still served the essential purpose of regulating employment terms and conditions. Therefore, the application for termination was dismissed. The Commission found that the employer had not provided sufficient grounds to warrant the termination of the existing agreement, which remained a valid and binding contract between the parties.

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