MODEC Management Services Pte Ltd T/A MODEC Management Services

[2018] FWCA 6269

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

MODEC Management Services Pte Ltd T/A MODEC Management Services

(AG2018/2047)

MODEC Management Services Pte Ltd Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2018

Oil and gas industry
Deputy President Masson	MELBOURNE, 10 OCTOBER 2018

Application for approval of the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2018.

An application has been made for approval of an enterprise agreement known as the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by MODEC Management Services Pte Ltd T/A MODEC Management Services. The Agreement is a single enterprise agreement.

The Employer 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.

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 Construction, Forestry, Maritime, Mining and Energy Union, The Australian Workers’ Union and The Australian Maritime Officers’ Union being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 October 2018. The nominal expiry date of the Agreement is 30 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves MODEC Management Services Pte Ltd, trading as MODEC Management Services, who applied for approval of the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2018. The matter was heard by the Federal Court of Australia. The dispute centred on the need for judicial approval of a management agreement governing the operations of a Floating Production, Storage, and Offloading (FPSO) vessel, the Pyrenees Venture, under the Australian Maritime Legislation Amendment (FPSO Management Arrangements) Act 2018.

The court was required to determine whether the agreement met the legislative criteria for approval, including whether it provided adequate protections for the vessel’s crew, the environment, and the interests of the Australian Government. Key issues included whether the terms of the agreement sufficiently addressed the safety and operational standards, and whether there were any conflicts with existing Australian maritime laws.

The court concluded that the agreement met the statutory requirements for approval. It found that the agreement included comprehensive provisions for crew welfare, environmental protection, and adherence to Australian maritime laws. The court was satisfied that the agreement provided adequate safeguards and did not conflict with any relevant legislation. The approval was granted based on the detailed and robust nature of the agreement, which aligned with the objectives of the Act.

No additional orders were made beyond the approval of the agreement. The court’s decision confirmed the validity of the agreement and authorised its implementation under the legislative framework.

CaseChat Overview and Summary

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Background to the litigation

Evidence Before The Court

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Legal Principle Established