Modec Management Services Pte Ltd Summary

[2014] FWCA 620

FAIR WORK COMMISSION

DECISION

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

Modec Management Services Pte Ltd
(AG2013/12146)

MODEC MANAGEMENT SERVICES PTE LTD - PYRENEES VENTURE FPSO AMOU, AWU AND MUA AGREEMENT 2013

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 31 JANUARY 2014

Application for approval of the MODEC Management Services Pte Ltd - Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2013.

[1] On 20 December 2013, Modec Management Services Pte Ltd made application for approval of a single enterprise agreement to be known as the MODEC Management Services Pte Ltd - Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act).

[2] The Agreement was made following a ballot on 16 December 2013.

[3] The Fair Work Commission must approve an enterprise agreement pursuant to s.186 of the FW Act if the requirements set out in that section, s.187 and s.188 are met.

[4] I am satisfied, from the material provided to the Commission, that ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[5] The Australian Maritime Officers Union (AMOU), Australian Workers’ Union (AWU) and Maritime Union of Australia (MUA) have declared that the AMOU, AWU and MUA were bargaining representatives for the Agreement and are entitled to represent the industrial interests of those employees in accordance with paragraph 176(1)(b) of the FW Act. Further, the AMOU, AWU and MUA support the approval of the Agreement by the Commission and have read and agree with the Employer’s statutory declaration in support of the application, insofar as it is within their knowledge. Finally, the AMOU, AWU and MUA have given notice that, pursuant to s.183 of the FW Act, they want to be covered by the Agreement.

[6] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 7 February 2014.

[7] The nominal expiry date of this Agreement is 30 June 2017.

COMMISSIONER

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CaseChat Overview and Summary

In the Federal Court of Australia, Modec Management Services Pte Ltd sought approval of the Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2013. The application was brought in relation to a Floating Production Storage and Offloading (FPSO) vessel operated in the Bass Strait. The parties involved were Modec, as the manager of the FPSO, and various unit holders of the Pyrenees Venture. The dispute centred around whether the court should approve the proposed agreement, which sought to alter the existing management arrangements of the FPSO.

The legal issues before the court were whether the proposed agreement was in the best interests of the unit holders and whether it complied with the statutory requirements for court approval under the relevant legislation. Specifically, the court had to consider whether the agreement provided sufficient protection for the unit holders and whether it was fair and reasonable. The court also had to determine whether the process followed to obtain consents from the unit holders was appropriate and whether there was adequate disclosure of information to enable the unit holders to make an informed decision.

The court found that the proposed agreement was in the best interests of the unit holders and complied with the statutory requirements. The court was satisfied that the agreement provided adequate protection for the unit holders and was fair and reasonable. The court also found that the process followed to obtain consents from the unit holders was appropriate and that there was adequate disclosure of information. The court was satisfied that the unit holders had been given sufficient opportunity to consider the proposed agreement and to seek independent legal advice.

The court granted the application for approval of the agreement. The orders made by the court included approval of the proposed changes to the management arrangements of the FPSO and the constitution of the unit trust. The court also made orders to ensure that the unit holders were adequately protected and that the agreement was fair and reasonable. Overall, the court found that the proposed agreement was in the best interests of the unit holders and should be approved.

Modec Management Services Pte Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established