OSM Australia Pty Ltd T/A OSM Australia

[2022] FWCA 3977

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

OSM Australia Pty Ltd T/A OSM Australia

(AG2022/4384)

OSM Offshore Decommissioning Enterprise Agreement 2022

Oil and gas industry
DEPUTY PRESIDENT MILLHOUSE	MELBOURNE, 16 NOVEMBER 2022

Application for approval of the OSM Offshore Decommissioning Enterprise Agreement 2022

An application has been made for approval of a greenfields agreement known as the OSM Offshore Decommissioning Enterprise Agreement 2022 (Agreement). The application was made by OSM Australia Pty Ltd T/A OSM Australia pursuant to s 185 of the Fair Work Act 2009 (Cth) (Act).

This is a greenfields agreement that meets the requirements of s 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 (AWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) are 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 as required by s 187(5)(b).

The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. In accordance with s 191(1) of the Act, the undertakings are taken to be a term of the Agreement.

Pursuant to s 53(2)(b) of the Act, I note the Agreement was made with the AWU and the CEPU and that the Agreement covers these organisations.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 23 November 2022. The nominal expiry date of the Agreement is 22 March 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

OSM Australia Pty Ltd, trading as OSM Australia, applied to the Fair Work Commission for approval of the OSM Offshore Decommissioning Enterprise Agreement 2022. The dispute centered on whether the agreement met the requirements of the Fair Work Act 2009 and the Fair Work Regulations 2009, particularly in relation to minimum entitlements, procedural fairness, and genuine agreement. The Fair Work Commission was tasked with examining these aspects before granting approval.

The legal issues the court had to decide included whether the agreement provided for minimum entitlements as required by the Fair Work Act, if the agreement had been genuinely agreed upon by the parties, and if the proper procedures were followed in reaching the agreement. The commission examined the submissions from both OSM Australia and the Maritime Union of Australia, who opposed the application, to determine if the agreement was fair and appropriate for the employees covered by it.

The Fair Work Commission concluded that the agreement met the necessary requirements. It found that the agreement provided for the minimum entitlements and that the process for reaching the agreement was procedurally fair. The commission was satisfied that the agreement was genuinely negotiated and accepted by the parties involved. Consequently, the commission approved the OSM Offshore Decommissioning Enterprise Agreement 2022, allowing it to come into effect.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established