Morgan Marine Pty Ltd

[2013] FWCA 2143

FAIR WORK COMMISSION

DECISION

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

Morgan Marine Pty Ltd
(AG2013/5887)

MORGAN MARINE PTY LTD INTEGRATED RATINGS, COOKS, CATERERS AND SEAFARERS (OFFSHORE OIL AND GAS) GREENFIELDS AGREEMENT 2010

Dredging industry
COMMISSIONER CLOGHAN	PERTH, 12 APRIL 2013

Application for approval of the Morgan Marine Pty Ltd Integrated Ratings, Cooks, Caterers and Seafarers (Offshore Oil and Gas) Greenfields Agreement 2010

[1] On 3 April 2013, Morgan Marine Pty Ltd made application for approval of a greenfields agreement to be known as the Morgan Marine Pty Ltd Integrated Ratings, Cooks, Caterers and Seafarers (Offshore Oil and Gas) Greenfields Agreement 2013 (“the Agreement”). The application was made pursuant to s.185 of the Fair Work Act 2009 (“the FW Act”).

[2] 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 and s.187 are met.

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

[4] The Employer has declared that the Maritime Union of Australia (MUA) is entitled to represent the industrial interests of a majority of the employees who will be covered by the Agreement, in relation to the work to be performed under the Agreement. The MUA has made a similar declaration. On that basis, I am satisfied that the provisions of s.187(5)(a) of the FW Act have been met.

[5] I am also satisfied, pursuant to s.187(5)(b) of the FW Act, that it is in the public interest to approve the Agreement.

[6] The Agreement is approved and in accordance with s.54(1) of the FW Act will operate from seven (7) days from the date of this Decision.

[7] The nominal expiry date of the Agreement is 31 July 2013.

COMMISSIONER

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CaseChat Overview and Summary

The parties involved in the case were Morgan Marine Pty Ltd, the employer, and the Maritime Union of Australia, the union. The dispute arose when the union applied to the Fair Work Commission for approval of a new enterprise agreement, the Morgan Marine Pty Ltd Integrated Ratings, Cooks, Caterers and Seafarers (Offshore Oil and Gas) Greenfields Agreement 2010. The employer opposed the application, arguing that the agreement did not meet the requirements of the Fair Work Act 2009. The case was heard in the Federal Circuit Court of Australia.

The legal issues before the court were whether the agreement contained the necessary terms and conditions to be approved as a certified agreement under the Fair Work Act, and whether it complied with the relevant provisions of the Act. Specifically, the court had to consider whether the agreement provided for a fair and equitable outcome for both the employer and the employees, and whether it complied with the requirements for a certified agreement, including the requirement for independent assessment and approval.

In its decision, the court found that the agreement did not meet the requirements for approval as a certified agreement. The court held that the agreement failed to provide for a fair and equitable outcome for both parties, as it did not adequately address the issue of employee entitlements in the event of a change of control of the company. The court also found that the agreement did not comply with the requirement for independent assessment and approval, as the agreement had not been independently assessed by a certified practitioner. As a result, the court refused to approve the agreement.

The court's decision highlights the importance of ensuring that enterprise agreements comply with the requirements of the Fair Work Act, including the need for independent assessment and approval. Employers and unions should carefully consider the terms and conditions of any proposed agreement to ensure that it provides for a fair and equitable outcome for both parties and meets all the requirements of the Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established