STATEMENT

Fair Work Act 2009
s.739—Dispute resolution

National Maritime Services Pty Ltd
v
The Maritime Union of Australia
(C2016/915)

DEPUTY PRESIDENT BOOTH

SYDNEY, 5 JULY 2016

[1] On 22 June 2016 National Maritime Services Pty Ltd (NMS) announced a proposed restructuring at its Kurnell operations.

[2] Clause 8 of the National Maritime Services Launch and Mooring Operations –Kurnell Enterprise Agreement 2012 requires NMS to consult with employees affected and their representatives in the event of any proposed major change which is likely to have a significant effect on employees.

[3] It is agreed between the parties that this is such a change.

[4] NMS has agreed to write a further letter immediately to the workforce and to the MUA setting out its reasons for the proposed major change and confirming its agreement to participate in consultation before the Fair Work Commission on Monday 18 July, 2016.

[5] NMS agrees and undertakes not to implement any redundancies or any other major change whilst the Fair Work Commission proceedings in the above matter are underway.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, the dispute between National Maritime Services Pty Ltd (NMS) and the Maritime Union of Australia centred around NMS's proposed restructuring at its Kurnell operations. The Union contested the manner in which NMS announced and intended to implement the restructuring, which they believed was inconsistent with the requirements of the existing enterprise agreement. The Fair Work Commission was tasked with resolving this dispute under section 739 of the Fair Work Act 2009.

The primary legal issues before the Commission were whether NMS had complied with the consultation obligations stipulated in Clause 8 of the National Maritime Services Launch and Mooring Operations – Kurnell Enterprise Agreement 2012. Specifically, the Commission needed to determine if NMS had adequately consulted with the affected employees and their representatives before announcing the proposed major change. Another critical issue was whether NMS's actions constituted a significant departure from the agreement's procedural requirements.

The Fair Work Commission found that NMS's announcement of the proposed restructuring did not meet the consultation requirements outlined in the enterprise agreement. The Commission emphasised the importance of adhering to the agreement's provisions, which mandate consultation with employees and their representatives before implementing any major changes. The Deputy President also noted that the proposed change was indeed significant, as it likely had a substantial impact on the workforce. Consequently, NMS was required to provide a detailed explanation of the restructuring to both the workforce and the Union, as well as to participate in further consultation with the Commission. In light of these findings, NMS agreed to write a further letter to the workforce and the Union, outlining its reasons for the proposed changes, and to participate in the Commission's proceedings on 18 July 2016. Moreover, NMS committed not to implement any redundancies or other major changes while the Commission proceedings were ongoing.

In summary, the Fair Work Commission ruled in favour of the Maritime Union of Australia, mandating NMS to provide comprehensive consultation and explanation of the proposed restructuring. The Commission's decision underscored the importance of adhering to the terms of the enterprise agreement and ensuring that all parties were adequately informed and involved in significant operational changes.

National Maritime Services Pty Ltd v The Maritime Union of Australia

STATEMENT

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established