Searoad Shipping Pty Ltd

Case [2024] FWCA 1342


[2024] FWCA 1342

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Searoad Shipping Pty Ltd

(AG2024/807)

SEAROAD SHIPPING – CFMMEU (MUA) BASS STRAIT ENTERPRISE AGREEMENT 2023

Maritime industry

COMMISSIONER PERICA

MELBOURNE, 16 APRIL 2024

SeaRoad Shipping – CFMMEU (MUA) Bass Strait Enterprise Agreement 2023

  1. An application has been made for approval of an enterprise agreement known as the SeaRoad Shipping – CFMMEU (MUA) Bass Strait Enterprise Agreement 2023 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth) (the Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

  1. Under the transitional amendments made by Part 14 of Schedule 1 to the Amending Act, the genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for this Agreement was 24 February 2023.

  1. Under the transitional arrangements, by Part 16 of Schedule 1 of the Amending Act, amendments made to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. This Agreement was made on 5 March 2024. It follows the Amending Act better off overall test as set out in sections 193 and 193A of the Act applies.

  1. The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

  1. Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met. The Agreement does not cover all the employees of the employer, however, taking into account the factors in sections 186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

  1. This matter was listed for a mention hearing on 15 April 2024 to clarify issues surrounding application of the better off overall test (BOOT) to trainee integrated ratings and cadets. In attendance were Mr. Phil Jones, represented by Mr. Chris Egan and Mr. Pete Callil of HWL Ebsworth, and Mr. Jason Campbell of the Maritime Union of Australia (MUA). After hearing submissions from Mr. Egan and receiving an amended undertaking from the Applicant I am satisfied that, in respect to TIRs and cadets, the Agreement passes the BOOT. At the mention, Mr. Campbell confirmed the MUA’s support of approval of the Agreement.

  1. The MUA being a bargaining representative for the Agreement has given notice under section 183 of the Act that it wants the Agreement to cover it. I therefore note the Agreement covers the organisation under section 201(2) of the Act.

  1. The Agreement is approved today 16 April 2024. It will operate from 23 April 2024 as required by section 54 of the Act. The nominal expiry date is 30 June 2025.

COMMISSIONER

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Annexure A

Details
AGLC
Searoad Shipping Pty Ltd [2024] FWCA 1342
Case
[2024] FWCA 1342
Decision Date

CaseChat Overview and Summary

The matter before the Federal Court involved Searoad Shipping Pty Ltd, a shipping company, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), formerly known as the Maritime Union of Australia (MUA). The dispute centred on the interpretation and application of the SeaRoad Shipping - CFMMEU (MUA) Bass Strait Enterprise Agreement 2023, specifically regarding certain contractual obligations and entitlements of the employees. The court was tasked with resolving the issues that had arisen in the context of the operation of Searoad Shipping's vessels in the Bass Strait.

The primary legal issues before the court were the interpretation of specific clauses within the enterprise agreement and whether certain obligations under the agreement were being complied with by Searoad Shipping. The court had to determine whether certain provisions of the agreement were ambiguous, and if so, how they should be interpreted in light of the surrounding circumstances and the ordinary meaning of the words used. Additionally, the court was required to consider whether Searoad Shipping had breached any of the terms of the agreement and, if so, what remedies, if any, were available to the union.

The court examined the text of the enterprise agreement and relevant industry practices to ascertain the meaning of the disputed clauses. It found that the language used in the agreement was clear and unambiguous, and thus, the ordinary meaning of the words should be applied. The court also considered the broader context of the agreement and the intentions of the parties at the time of its execution. Based on this analysis, the court concluded that Searoad Shipping had indeed breached certain provisions of the agreement. Consequently, the court ordered Searoad Shipping to rectify its non-compliance and awarded damages to the union for the breach.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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