Monadelphous Engineering Associates Pty Ltd Summary

[2024] FWCA 3802

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Monadelphous Engineering Associates Pty Ltd

(AG2024/3868)

MEA PTY LTD OFFSHORE MAINTENANCE (STAFF) ENTERPRISE AGREEMENT 2024

Oil and gas industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 31 OCTOBER 2024

Application for approval of the MEA Pty Ltd Offshore Maintenance (Staff) Enterprise Agreement 2024 Application for approval of the MEA Pty Ltd Offshore Maintenance (Staff) Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the MEA Pty Ltd Offshore Maintenance (Staff) Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Monadelphous Engineering Associates Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 7 March 2024 and the Agreement was made on 20 September 2024. Accordingly, both the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Applicant expressed the view that the Agreement passes the Better Off Overall Test (BOOT) and provided a summary of why it expressed this view. Consistent with s.193A(3) of the Act I have given consideration to this view when determining whether the Agreement passes the BOOT. The Australian Workers Union (AWU), who were a bargaining agent, did not express a view as to whether the Agreement passes the BOOT.

The Applicant has provided written undertakings. 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 requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The AWU lodged a Form F18 statutory declaration giving notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 November 2024. The nominal expiry date of the Agreement is 31 October 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Monadelphous Engineering Associates Pty Ltd, the Fair Work Commission was tasked with approving the MEA Pty Ltd Offshore Maintenance (Staff) Enterprise Agreement 2024. This agreement, which regulates the terms and conditions of employment for offshore maintenance staff, was brought forward for approval by the company and the relevant union representatives. The primary focus of the application was to determine whether the proposed enterprise agreement met the statutory requirements under the Fair Work Act 2009.

The key legal issues before the Commission were whether the enterprise agreement provided for the employees' pay and conditions in a manner that complied with the Fair Work Act. This included verifying that the agreement was made in good faith and covered the necessary minimum terms and conditions as prescribed by the legislation. Furthermore, the Commission had to ensure that the agreement did not adversely affect the employees' ability to exercise their protected industrial action rights, which are fundamental to the Australian industrial relations system.

In examining the application, the Fair Work Commission considered the provisions of the agreement, the submissions from both the employer and the union, and the broader implications for the employees. The Commission found that the agreement was made in good faith and contained all the necessary minimum terms and conditions. Additionally, it was determined that the agreement did not undermine the employees' right to engage in protected industrial action. Consequently, the Commission approved the MEA Pty Ltd Offshore Maintenance (Staff) Enterprise Agreement 2024, ensuring that it would come into effect as intended.

As a result of the Commission's approval, the MEA Pty Ltd Offshore Maintenance (Staff) Enterprise Agreement 2024 is now in force, governing the employment terms and conditions of the offshore maintenance staff. This decision provides clarity and certainty for both the employer and the employees, ensuring that the agreement operates within the legal framework established by the Fair Work Act.

Monadelphous Engineering Associates Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established