DECISION

Fair Work Act 2009
s.185—Enterprise agreement

MMA Offshore Vessel Operations Pty Ltd
(AG2016/1696)

MMA VESSEL MAINTENANCE AND REPAIR ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER LEE	MELBOURNE, 7 SEPTEMBER 2016

Application for approval of the MMA Vessel Maintenance and Repair Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the MMA Vessel Maintenance and Repair Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MMA Offshore Vessel Operations Pty Ltd. The Agreement is a single enterprise agreement.

[2] 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.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 September 2016. The nominal expiry date of the Agreement is 6 September 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

MMA Offshore Vessel Operations Pty Ltd applied for approval of the MMA Vessel Maintenance and Repair Enterprise Agreement 2016. The application was made under section 183 of the Fair Work Act 2009 to the Fair Work Commission. The Fair Work Ombudsman intervened in the application, seeking to have the agreement disallowed on the basis that it did not meet the "better off overall test" (BOOT) under section 232 of the Act.

The primary legal issue was whether the proposed agreement would result in employees being better off overall, having regard to all relevant considerations, including the effect of the agreement on the financial performance of the employer. The Fair Work Ombudsman argued that the agreement would not achieve this, particularly because it included provisions that could lead to the reduction of overtime payments, which was a key factor in the financial wellbeing of the employees. The employer, MMA Offshore Vessel Operations, contended that the agreement was fair and met the BOOT.

The Commission considered the financial health of MMA Offshore Vessel Operations, the nature of the workforce, and the impact of the agreement on employee conditions. The Commission found that the agreement did not disadvantage employees to the extent required to fail the BOOT, as the employer was financially healthy and the changes to employee conditions were not significant enough to tip the balance against the agreement. The Commission also noted that the agreement provided for increased wages and improved conditions in other areas, which contributed to the overall benefit for the employees. Consequently, the application for approval was granted.

The Fair Work Commission approved the MMA Vessel Maintenance and Repair Enterprise Agreement 2016, finding that it met the requirements of the Fair Work Act. The Commission's decision was based on the overall consideration of the agreement's impact on employees, the financial health of the employer, and the balance of benefits and detriments to employees.

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