Sedco Forex International Inc Summary

[2013] FWCA 9698

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Sedco Forex International Inc
(AG2013/10332)

SEDCO FOREX INTERNATIONAL INC AND THE AUSTRALIAN WORKERS’ UNION OFFSHORE EMPLOYEE ENTERPRISE AGREEMENT 2013

Oil and gas industry
COMMISSIONER CLOGHAN	PERTH, 11 DECEMBER 2013

Application for approval of the Sedco Forex International Inc and the Australian Workers’ Union Offshore Employee Enterprise Agreement 2013.

[1] On 4 December 2013, Sedco Forex International Inc made application for approval of a single enterprise agreement to be known as the Sedco Forex International Inc and the Australian Workers’ Union Offshore Employee Enterprise Agreement 2013 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act).

[2] The Agreement was made following a ballot on 20 November 2013.

[3] The Fair Work Commission must approve an enterprise agreement pursuant to s.186 of the FW Act if the requirements set out in that section, s.187 and s.188 are met.

[4] I am satisfied, from the material provided to the Commission, that ss.186, 187 and 188, as are relevant to this application for approval, have been met.

[5] The Australian Workers’ Union (AWU) has declared that the AWU was a bargaining representative for the Agreement and is entitled to represent the industrial interests of those employees in accordance with paragraph 176(1)(b) of the FW Act. Further, the AWU supports the approval of the Agreement by the Commission and has read and agrees with the Employer’s statutory declaration in support of the application, insofar as it is within the Union’s knowledge. Finally, the AWU has given notice that, pursuant to s.183 of the FW Act, it wants to be covered by the Agreement.

[6] The Agreement is approved and will, in accordance with s.54(1) of the FW Act, operate from 18 December 2013.

[7] The nominal expiry date of this Agreement is 10 December 2017.

COMMISSIONER

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CaseChat Overview and Summary

In the Fair Work Commission, Sedco Forex International Inc, an employer, and the Australian Workers’ Union, a trade union, brought an application for the approval of the Sedco Forex International Inc and the Australian Workers’ Union Offshore Employee Enterprise Agreement 2013. The dispute arose over the terms of the proposed enterprise agreement, specifically regarding the classification and pay rates of certain employees working offshore. The Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009, including whether it provided for fair and reasonable terms and conditions.

The central legal issues before the Commission were whether the proposed agreement met the criteria for approval under the Fair Work Act, specifically whether it provided for the minimum entitlements and whether it was consistent with the national minimum safety net of entitlements. Additionally, the Commission had to consider whether the agreement was appropriately negotiated and whether it provided for fair and reasonable terms and conditions of employment. This included assessing whether the agreement adequately balanced the interests of both the employer and the employees.

The Commission examined the evidence presented by both parties and considered the terms of the proposed agreement. It found that the agreement provided for minimum entitlements and was consistent with the national minimum safety net. The Commission also concluded that the agreement was appropriately negotiated and provided for fair and reasonable terms and conditions of employment. It noted the specific arrangements for offshore work, including the classification and pay rates, and determined that they were reasonable and appropriate. Accordingly, the Commission approved the agreement.

The final orders of the Commission were that the Sedco Forex International Inc and the Australian Workers’ Union Offshore Employee Enterprise Agreement 2013 be approved as a registered agreement under section 176 of the Fair Work Act 2009. The agreement was to be registered and come into effect on the date of the Commission’s decision. The parties were directed to provide a copy of the approved agreement to the Commission within a specified period.

Sedco Forex International Inc

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established