Rigforce Pty Ltd T/A Rigforce

[2017] FWCA 5140

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Rigforce Pty Ltd T/A Rigforce

(AG2017/3343)

Rigforce Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Greenfields Enterprise Agreement 2017

Oil and gas industry
Commissioner Gregory	MELBOURNE, 4 OCTOBER 2017

Application for approval of the Rigforce Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Greenfields Enterprise Agreement 2017.

An application has been made for approval of a greenfields agreement known as the Rigforce Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Greenfields Enterprise Agreement 2017 (Agreement). The application was made by Rigforce Pty Ltd T/A Rigforce pursuant to s.185 of the Fair Work Act 2009 (Act).

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.

Subject to the undertakings referred to above, 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.

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 Institute of Marine and Power Engineers 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.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the Australian Institute of Marine and Power Engineers and that the Agreement covers these organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2017. The nominal expiry date of the Agreement is 3 October 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by Rigforce Pty Ltd, trading as Rigforce, for approval of the Rigforce Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Greenfields Enterprise Agreement 2017. This agreement was to apply to employees working in the maritime, offshore oil and gas industry. The dispute centred around whether the proposed agreement met the statutory requirements for approval under the Fair Work Act 2009. Key concerns included the procedural fairness in the agreement's formation, the adequacy of the agreement's terms, and its alignment with the principles of the Fair Work Act.

The central legal issues before the Commission were whether the enterprise agreement was genuinely negotiated and whether it adhered to the procedural requirements as outlined in the Fair Work Act. The Commission had to assess whether the bargaining process was fair and if the agreement included all mandated terms and conditions. Additionally, the Commission considered whether the agreement provided for a safety net of minimum entitlements and whether it met the "better off overall test," ensuring that employees were no worse off financially under the new agreement.

In reaching its decision, the Commission examined the evidence presented regarding the negotiation process and the terms of the agreement. It found that the agreement was genuinely negotiated and that the bargaining process was fair. The Commission also determined that the agreement complied with the statutory requirements, including the safety net provisions and the better off overall test. Consequently, the Commission approved the Rigforce Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Greenfields Enterprise Agreement 2017, recognising it as a valid and legally binding agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established