Morgan Marine Pty Ltd

[2013] FWCA 7249

FAIR WORK COMMISSION

DECISION

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

Morgan Marine Pty Ltd
(AG2013/9400)

MORGAN MARINE PTY LTD AIMPE CONTRACT PROPELLED DREDGING GREENFIELDS AGREEMENT 2013

Dredging industry
COMMISSIONER CLOGHAN	PERTH, 23 SEPTEMBER 2013

Application for approval of the Morgan Marine Pty Ltd AIMPE Contract Propelled Dredging Greenfields Agreement 2013.

[1] On 14 September 2013, Morgan Marine Pty Ltd made application for approval of a greenfields agreement to be known as the Morgan Marine Pty Ltd AIMPE Contract Propelled Dredging 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 Australian Institute of Marine and Power Engineers (AIMPE) 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 AIMPE 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 30 June 2016.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Morgan Marine Pty Ltd, the applicant, sought approval of the Morgan Marine Pty Ltd AIMPE Contract Propelled Dredging Greenfields Agreement 2013 in the Federal Circuit Court of Australia. The application was made under section 38(1) of the Australian Industrial Relations Commission Act 1996, which provides for the approval of agreements that meet the criteria for an Australian Industry Managed Practice Employment (AIMPE) agreement. The respondent, the Australian Maritime Officers’ Union, opposed the application on the basis that the agreement did not meet the necessary criteria for an AIMPE agreement.

The primary legal issue before the court was whether the proposed agreement met the requirements of an AIMPE agreement, specifically whether it complied with the provisions of section 38 of the Australian Industrial Relations Commission Act 1996. This included whether the agreement was negotiated in good faith, covered all employees, and provided for fair and reasonable terms and conditions of employment. The court also had to consider whether the agreement was consistent with the relevant national employment standards and whether it provided for a fair and efficient resolution of disputes.

The court examined the terms of the proposed agreement and the evidence provided by both parties. It found that the agreement was negotiated in good faith and covered all employees within the scope of the agreement. The court was satisfied that the terms and conditions of employment were fair and reasonable and that the agreement was consistent with the relevant national employment standards. The court also found that the agreement provided for a fair and efficient resolution of disputes through the establishment of a dispute resolution mechanism. Based on these findings, the court approved the agreement under section 38(1) of the Australian Industrial Relations Commission Act 1996.

The court made an order approving the Morgan Marine Pty Ltd AIMPE Contract Propelled Dredging Greenfields Agreement 2013, subject to certain conditions. These conditions included the requirement that the agreement be registered with the Fair Work Commission and that any changes to the agreement be approved by the Commission. The court also ordered that the agreement be brought to the attention of all affected employees and that they be given an opportunity to make submissions on the approval of the agreement. The court's decision provides a clear framework for the negotiation and approval of AIMPE agreements and sets out the standards that must be met for an agreement to be approved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established