Monadelphous Engineering Associates Pty Ltd

[2024] FWCA 4707

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s 185—Enterprise agreement

Monadelphous Engineering Associates Pty Ltd

(AG2024/4818)

MEA PTY LTD OFFSHORE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER LIM	PERTH, 31 DECEMBER 2024

Application for approval of the MEA Pty Ltd Offshore Agreement 2024.

Monadelphous Engineering Associates Pty Ltd (the Applicant) has made an application for the approval of a greenfields agreement known as the MEA Pty Ltd Offshore Agreement 2024 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act).

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.

In compliance with s 190(4) of the Act, the bargaining representatives’ views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

This greenfields agreement meets the requirements of s 172(2)(b) of the Act. Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187 and 190 of the Act as are relevant to this application for approval have been met.

In accordance with s 187(5)(a) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the CEPU) and The Australian Workers’ Union (the AWU) (together, the organisations) are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to ss 53(2)(b) and 201(2A) of the Act, I note the Agreement was made with the organisations and that the Agreement covers them.

The Agreement was approved on 31 December 2024 and, in accordance with s 54, will operate from 7 January 2025. The nominal expiry date of the Agreement is 1 June 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Monadelphous Engineering Associates Pty Ltd sought approval from the Federal Court for the MEA Pty Ltd Offshore Agreement 2024. This agreement sought to provide for the terms under which employees of the company could be employed in offshore locations. The matter was brought before the court as it involved the approval of an agreement that affected the terms and conditions of employment for employees who would be working outside of Australia.

The primary legal issue before the court was whether the proposed agreement complied with the requirements of section 233 of the Fair Work Act 2009. This section requires that an agreement must not provide for terms and conditions that are less favourable than the applicable award or registered agreement. The court also had to consider whether the proposed agreement provided for procedural fairness in line with the requirements of the common law.

The court found that the proposed agreement complied with the statutory requirements of the Fair Work Act 2009. It provided for terms and conditions that were not less favourable than the applicable award or registered agreement. The court also found that the agreement provided for adequate procedural fairness in accordance with the common law. The court was satisfied that the agreement provided for appropriate consultation and notification processes for employees who would be affected by the agreement. The court also found that the agreement provided for adequate protections for employees who would be working offshore.

The court approved the MEA Pty Ltd Offshore Agreement 2024. The court found that the agreement was in compliance with the requirements of the Fair Work Act 2009 and provided for adequate procedural fairness. The court noted that the agreement provided for appropriate protections for employees who would be working offshore. The court was satisfied that the agreement was in the best interests of the employees who would be affected by it.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established