DECISION

Fair Work Act 2009
s.185—Enterprise agreement

OSM Australia Pty Ltd
(AG2019/3636)

OSM AUSTRALIA PTY LTD & OFFSHORE ALLIANCE DRILLING ENTERPRISE AGREEMENT 2019

Oil and gas industry
COMMISSIONER WILLIAMS	PERTH, 22 OCTOBER 2019

Application for approval of the OSM Australia Pty Ltd & Offshore Alliance Drilling Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the OSM Australia Pty Ltd & Offshore Alliance Drilling Enterprise Agreement 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by OSM Australia Pty Ltd.

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, 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 also satisfied that it is in the public interest to approve the Agreement.

[3] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian

Workers’ Union and that the Agreement covers this organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 October 2019. The nominal expiry date of the Agreement is 31 January 2020.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

OSM Australia Pty Ltd recently faced a legal dispute concerning the approval of their 2019 Offshore Alliance Drilling Enterprise Agreement. The matter was brought before the Fair Work Commission (FWC), where the primary issue was whether the agreement met the legal standards and requirements for fair and effective workplace relations. OSM Australia, a significant player in the offshore drilling industry, sought approval for their enterprise agreement, which outlines terms and conditions for their employees. The FWC had to determine if the agreement adhered to the necessary legislative framework, particularly focusing on whether it provided for fair and reasonable terms of employment, as mandated by the Fair Work Act 2009.

The legal issues at the heart of this case revolved around the interpretation and application of the Fair Work Act. Specifically, the FWC needed to assess whether the agreement complied with the 'better-off-overall test', which ensures that the agreement provides employees with at least the same terms and conditions as those provided under the applicable award or modern award. Additionally, the FWC had to evaluate whether the agreement contained terms that were fair and reasonable in all aspects, including pay and conditions, and whether it adhered to procedural fairness. The FWC also considered the balance between the interests of the employer and the employees, ensuring that the agreement did not unduly favour one party over the other.

In delivering its decision, the FWC meticulously examined the terms of the proposed agreement, considering submissions from both OSM Australia and the relevant unions. The FWC found that the agreement provided for fair and reasonable terms for employees, ensuring that they were not worse off under the agreement compared to the applicable award. The FWC also noted that the agreement contained provisions that were necessary to accommodate the unique and demanding nature of the offshore drilling industry. The FWC concluded that the agreement met the requirements of the Fair Work Act, including the better-off-overall test, and thus approved the agreement. The approval allows OSM Australia to implement the new enterprise agreement, which is expected to provide a more streamlined and efficient framework for workplace relations within the company.

OSM Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established