Sedco Forex International Inc

[2023] FWCA 2594

[2023] FWCA 2594

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.225—Enterprise agreement

Sedco Forex International Inc

(AG2023/2504)

SEDCO FOREX INTERNATIONAL INC OFFSHORE EMPLOYEE ENTERPRISE AGREEMENT 2017

Oil and gas industry
DEPUTY PRESIDENT O’KEEFFE	PERTH, 16 AUGUST 2023

Application for termination of the Sedco Forex International Inc Offshore Employee Enterprise Agreement 2017

1. An application pursuant to s225 of the Fair Work Act (Cth) (the Act) has been made by Sedco Forex International Inc. (the Applicant) to terminate the Sedco Forex International Inc Offshore Employee Enterprise Agreement 2017 (the Agreement).

1. Section 225 of the Act provides as follows:

“225  Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a)one or more of the employers covered by the agreement;

(b)an employee covered by the agreement;

(c)an employee organisation covered by the agreement.”

1. The Agreement has passed its nominal expiry date of 1 February 2022. Sedco Forex International Inc. is an employer covered by the Agreement and has standing to make the application as per s225(a).

1. The Applicant has provided a statutory declaration stating that the Agreement does not cover any employees.  There is no employee organization covered by the Agreement.

2. The criteria for termination of an agreement are set out in s226 of the Act, the relevant parts of which are as follows:

“226  Terminating an enterprise agreement after its nominal expiry date

(1)If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a)…

(b)the FWC is satisfied that the agreement does not, and is not likely to, cover any employees; or

(c)…

(1A)However, the FWC must terminate the enterprise agreement under subsection (1) only if the FWC is satisfied that it is appropriate in all the circumstances to do so.

(2)…

(3)In deciding whether to terminate the agreement, the FWC must consider the views of the following covered by the agreement:

(a)the employees (unless there are no employees covered by the agreement);

(b)each employer;

(c)each employee organisation (if any).

(4)…

(5)In deciding whether to terminate the agreement, the FWC may also have regard to any other relevant matter.”

1. Following correspondence with the Applicant, I have been advised that discussions for a greenfields agreement to cover prospective work that would have been covered by the Agreement have been taking place with the “Offshore Alliance”, being the Australian Workers Union and the Maritime Division of the CFMMEU.  On 14 August 2023 I received correspondence from the Offshore Alliance confirming that they support termination of the Agreement. 

2. I am satisfied that the relevant requirements for termination under s226 have been met and I consider that in all the circumstances it is appropriate to terminate the Agreement. The termination will come into effect on 16 August 2023.

DEPUTY PRESIDENT

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