DECISION

Fair Work Act 2009
s.185—Enterprise agreement

P&O Maritime Services Pty Ltd
(AG2019/4891)

P&O MARITIME SERVICES ENGINEER OFFICERS ENTERPRISE AGREEMENT 2018

Maritime industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 14 JANUARY 2020

Application for approval of the P&O Maritime Services Engineer Officers Enterprise Agreement 2018.

[1] P&O Maritime Services Pty Ltd has made an application for the approval of an enterprise agreement known as the P&O Maritime Services Engineer Officers Enterprise Agreement 2018 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

[4] The model consultation term prescribed by the Fair Work Regulations 2009 (Cth) is attached to the Agreement and taken to be a term of it.

[5] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 as are relevant to this application for approval have been met.

[6] The Australian Institute of Marine and Power Engineers (the organisation),being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. In accordance with s 201(2), and based on the statutory declaration provided by the organisation, I note that the organisation is covered by the Agreement.

[7] The Agreement was approved on 14 January 2020 and, in accordance with s 54, will operate from 21 January 2020. The nominal expiry date of the Agreement is 30 June 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The application before the Fair Work Commission was brought by P&O Maritime Services Pty Ltd, seeking approval of the P&O Maritime Services Engineer Officers Enterprise Agreement 2018. The applicant argued that the agreement, which had been negotiated with the Maritime Union of Australia, met the necessary criteria for approval under the Fair Work Act 2009. The applicant contended that the agreement was necessary to facilitate the operation of its business and that it provided for fair and reasonable terms and conditions for the employees covered by the agreement. The respondent, the Fair Work Ombudsman, opposed the application, asserting that the agreement did not meet the "better off overall test" and contained terms that were not in the best interests of the employees.

The primary legal issue before the Commission was whether the proposed enterprise agreement met the statutory requirements for approval under the Fair Work Act 2009. Specifically, the Commission needed to determine whether the agreement complied with the "better off overall test", which requires that employees be no worse off and at least some employees be better off financially under the new agreement compared to their existing conditions. Additionally, the Commission had to assess whether the agreement included any terms that were not in the best interests of the employees, such as provisions that were overly restrictive or unfairly disadvantaged certain employees.

In delivering its decision, the Commission found that the proposed agreement did indeed meet the better off overall test, with several employees being better off financially as a result of the new terms. The Commission also determined that the agreement contained no terms that were not in the best interests of the employees, as the provisions were fair and reasonable, and did not unduly restrict the rights or entitlements of the employees. The Commission noted that the agreement provided for improved wages, better work-life balance, and enhanced job security, which were all in the best interests of the employees. Consequently, the Commission approved the P&O Maritime Services Engineer Officers Enterprise Agreement 2018, finding it to be compliant with the relevant statutory requirements.

The Fair Work Commission's approval of the P&O Maritime Services Engineer Officers Enterprise Agreement 2018 means that the agreement is now legally binding on both the employer and the employees covered by the agreement. The agreement will come into effect on the date specified in the approval order, and both parties will be required to adhere to the terms and conditions set out in the agreement. The approval of this agreement is an important step in ensuring that the employees of P&O Maritime Services have fair and reasonable terms and conditions of employment, while also facilitating the operation of the employer's business.

P&O Maritime Services 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