Northern Marine Australia Pty Ltd

[2016] FWCA 4780

[2016] FWCA 4780

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Northern Marine Australia Pty Ltd
(AG2016/3893)

NORTHERN MARINE AUSTRALIA (NMA) DRILLING RIG AGREEMENT 2014

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 29 JULY 2016

Application for variation of the Northern Marine Australia (NMA) Drilling Rig Agreement 2014 - Clause 18: Salaries.

[1] This is an application by Northern Marine Australia Pty Ltd (Applicant) for approval of a variation of an enterprise agreement.

[2] The enterprise agreement is the Northern Marine Australia (NMA) Drilling Rig Agreement 2014 (Agreement).

[3] The application is made pursuant to s.210 of the Fair Work Act 2009 (FW Act).

[4] In support of the application, the Applicant has provided:

• Form F23 – Application for approval of variation of an enterprise agreement;



• Form F23A – Employer’s statutory declaration in support of variation of an enterprise agreement;



• signed copy of the varied agreement; and



• copy of the agreement proposed to be varied with tracked changes.

[5] Pursuant to s.211 of the FW Act, the Agreement is varied as follows.

[6] Delete existing subclause 18(a) and insert in lieu the following:

“(a) Whilst the rig is engaged in operational drilling an Employee under this Agreement will be paid at the rate no less than the minimum salaries prescribed in Schedule A of this Agreement as appropriate to that Employee’s classification and employment.”

[7] Delete existing subclause 18(d) and insert in lieu the following:

“(d) The salary for each Employee will be reviewed annually. Consideration of any movement to an Employee’s salary will be based upon performance and general overall market conditions. The salary will not be reduced below the base rate contained within schedule A of this Agreement. Any adjustment will be effective each year from the first pay period on or after anniversary of commencement of this Agreement for the term of this Agreement.”

[8] Insert new subclause 18(e) as follows:

“(e) The period of time that a rig is being maintained but is not engaged in operational drilling is referred to as being ‘warm stacked’. The warm stack period commences when the rig arrives at the warm stack location and ceases when the vessel departs to commence operational drilling. The period in transit to and from the warm stack location is not classified as part of the warm stack period.”

[9] Delete existing subclause 18(e) and insert as new subclause 18(f) as follows:

“(f) During the period the rig is in warm stack, the Employee will receive 85% of normal salary applicable to their appointed classification under Schedule A.”

[10] Corresponding changes have been made to the Table of Contents.

[11] A majority of employees who cast a valid vote, voted to approve the variations on 11 July 2016.

[12] The variations are operative from 29 July 2016.

[13] A consolidated version of the Agreement, as varied, is attached to this Decision.

COMMISSIONER

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