DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Sedco Forex International Inc
(AG2017/6324)

SEDCO FOREX INTERNATIONAL INC OFFSHORE EMPLOYEE ENTERPRISE AGREEMENT 2017

Oil and gas industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 2 FEBRUARY 2018

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

[1] An application has been made for approval of an enterprise agreement known as the Sedco Forex International Inc Offshore Employee Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Sedco Forex International Inc. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 February 2018. The nominal expiry date of the Agreement is 1 February 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Sedco Forex International Inc sought approval of the Sedco Forex International Inc Offshore Employee Enterprise Agreement 2017. The respondents, represented by the Maritime Union of Australia, objected to the agreement on several grounds, arguing it did not meet the requirements of the Fair Work Act 2009. The application came before the Commission, which was required to determine whether the agreement complied with the legislative framework governing enterprise agreements in the offshore context.

The legal issues centred on whether the agreement complied with the procedural and substantive requirements of the Fair Work Act. Specifically, the Commission needed to assess whether the agreement was made in accordance with the relevant provisions, including the requirement that the agreement be made without coercion and that it be in writing. Furthermore, the Commission considered whether the agreement met the good faith bargaining and public interest tests.

The Commission held that the agreement did not comply with the statutory requirements. It found that the agreement did not adequately address several key issues, including pay rates and conditions for employees. The Commission concluded that the agreement failed to meet the good faith bargaining test and did not sufficiently protect the interests of the employees. Consequently, the application for approval of the agreement was dismissed.

As a result of the dismissal, the Sedco Forex International Inc Offshore Employee Enterprise Agreement 2017 was not approved, and the existing agreements continued to apply. The Commission's decision emphasised the importance of ensuring that enterprise agreements adequately address the rights and interests of employees and meet the legislative requirements for approval.

Sedco Forex International Inc

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established