OSM Australia Pty Ltd Summary

[2025] FWCA 880 [Note: a correction has been issued to this document]

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

OSM Australia Pty Ltd

(AG2025/528)

OSM AUSTRALIA PTY LTD DRILLING ENTERPRISE AGREEMENT 2025

Oil and gas industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 12 MARCH 2025

Application for approval of the OSM Australia Pty Ltd Drilling Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement known as the OSM Australia Pty Ltd Drilling Enterprise Agreement 2025 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a greenfields agreement.

Section 205A(1) of the Act provides that an enterprise agreement must include a delegates’ rights term for workplace delegates to whom the agreement applies. The Agreement does not contain a delegates’ rights term. Pursuant to subsection 205A(2)(b) of the Act, the delegates’ rights term contained in the Hydrocarbons Industry (Upstream) Award 2020 is taken to be a term of the Agreement.

On the basis of the material before the Fair Work Commission, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to this application for approval of the Agreement have been met.

Based on the statutory declaration provided by the organisation, I am satisfied that the Australian Workers’ Union is 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 satisfied that the Australian Workers’ Union was a bargaining representative for the Agreement. I note that the Agreement covers the Australian Workers’ Union.

I am satisfied that the Agreement, considered on an overall basis, provides for pay and conditions that are consistent with the prevailing pay and conditions within the relevant industry for equivalent work.

I am satisfied that it is in the public interest to approve the Agreement.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 19 March 2024. The nominal expiry date of the Agreement is 18 September 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involves OSM Australia Pty Ltd, an applicant seeking approval for a proposed enterprise agreement, and the Fair Work Commission, which is tasked with determining whether the agreement meets the necessary requirements. The Commission was asked to consider whether the agreement was made in accordance with the relevant provisions of the Fair Work Act 2009. The dispute centred around whether the agreement adequately covered the necessary terms and conditions of employment, including whether the agreement provided for appropriate consultation processes and whether it was appropriately certified.

The primary legal issues before the Commission were whether the agreement was made in accordance with the Fair Work Act and whether the agreement provided for appropriate consultation processes. The Commission had to consider whether the agreement was certified in the prescribed manner and whether it contained the required minimum terms and conditions of employment. Additionally, the Commission needed to ensure that the agreement provided for appropriate consultation between the parties and that the agreement was made in good faith.

The Commission found that the agreement was made in accordance with the Fair Work Act and that the requisite consultation processes had been followed. The Commission held that the agreement contained the required minimum terms and conditions of employment and that it was certified in the prescribed manner. The Commission was satisfied that the agreement was made in good faith and that appropriate consultation had taken place. Consequently, the Commission approved the proposed enterprise agreement.

The Fair Work Commission approved the OSM Australia Pty Ltd Drilling Enterprise Agreement 2025, finding it met the necessary requirements under the Fair Work Act. The Commission determined that the agreement was made in accordance with the Act, contained the required minimum terms and conditions, and was certified in the prescribed manner. The Commission was satisfied that appropriate consultation processes had been followed and that the agreement was made in good faith.

OSM Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established