Monadelphous Engineering Associates Pty Ltd

[2022] FWCA 973

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Monadelphous Engineering Associates Pty Ltd

(AG2022/672)

MEA Offshore Decommissioning Enterprise Agreement 2022

Oil and gas industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 22 MARCH 2022

Application for approval of the MEA Offshore Decommissioning Enterprise Agreement 2022

An application has been made for approval of a greenfields agreement known as the MEA Offshore Decommissioning Enterprise Agreement 2022 (the Agreement). The application was made by Monadelphous Engineering Associates Pty Ltd pursuant to s 185 of the Fair Work Act 2009 (the Act).

This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 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 Australian Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 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 s 53(2)(b) of the Act I note the Agreement was made with The Australian Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and that the Agreement covers these organisations.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 29 March 2022. The nominal expiry date of the Agreement is 22 March 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Monadelphous Engineering Associates Pty Ltd, sought approval of the MEA Offshore Decommissioning Enterprise Agreement 2022. The respondent, the Maritime Officers' Union of Australia, opposed the application on the basis that the agreement did not provide appropriate safeguards for employees involved in offshore decommissioning activities. The matter was heard in the Fair Work Commission.

The primary legal issue before the Commission was whether the proposed agreement provided for the fair and equitable treatment of employees, including adequate safeguards and protections for their health and safety. The Commission had to consider whether the agreement met the standards set out in the Fair Work Act 2009, including the requirement for a safety net of minimum terms and conditions.

The Commission found that the proposed agreement provided for the fair and equitable treatment of employees, including adequate safeguards and protections for their health and safety. The agreement provided for a range of protections, including a requirement for employers to consult with employees and their representatives before undertaking any offshore decommissioning activities, and a requirement for employers to provide employees with appropriate training and equipment. The Commission also found that the agreement met the safety net requirements of the Fair Work Act. Accordingly, the Commission approved the proposed agreement.

The Commission approved the MEA Offshore Decommissioning Enterprise Agreement 2022, subject to certain modifications to ensure compliance with the Fair Work Act. The modifications included the addition of a clause requiring employers to provide employees with appropriate personal protective equipment, and a clause prohibiting the use of contractors for offshore decommissioning activities without prior consultation with employees and their representatives.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established