DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Rigforce Contracting Pty Ltd
(AG2020/134)

AWU AND RIGFORCE OFFSHORE DRILLING GREENFIELDS AGREEMENT 2019

Oil and gas industry
COMMISSIONER WILLIAMS	PERTH, 27 FEBRUARY 2020

Application for approval of the AWU and Rigforce Offshore Drilling Greenfields Agreement 2019.

[1] An application has been made for approval of a greenfields agreement known as the AWU and Rigforce Offshore Drilling Greenfields 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 Rigforce Contracting 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 has 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 5 March 2020. The nominal expiry date of the Agreement is 1 February 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Circuit Court of Australia, Rigforce Contracting Pty Ltd applied for approval of the AWU and Rigforce Offshore Drilling Greenfields Agreement 2019. The Australian Workers Union sought to have the agreement approved as a "single interest employer agreement." The dispute arose from the unique nature of the offshore drilling industry, where employees work on offshore drilling rigs, leading to complex jurisdictional and operational issues. The crux of the legal issue was whether the agreement met the statutory requirements for approval under the Fair Work Act 2009.

The court had to determine whether the agreement could be classified as a "single interest employer agreement" and if it complied with the procedural requirements for approval. A key point was whether the union's application, which was made on behalf of employees working on offshore rigs, aligned with the definition of a single interest employer agreement. The court examined the nature of the work, the specific conditions of the offshore drilling industry, and the union's authority to make the application on behalf of the employees. The court concluded that the agreement did indeed meet the statutory criteria for approval and adhered to the necessary procedural requirements.

The court approved the AWU and Rigforce Offshore Drilling Greenfields Agreement 2019, recognising it as a single interest employer agreement. The decision emphasised the unique aspects of the offshore drilling industry and the need for tailored agreements that address the specific working conditions and jurisdictional challenges faced by employees in this sector. The court's approval was contingent on the agreement being registered with the Fair Work Commission, ensuring compliance with all statutory provisions and procedural requirements.

Rigforce Contracting 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