Sedco Forex International Limited Summary

[2025] FWCA 414

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210—Enterprise agreement

Sedco Forex International Limited

(AG2024/4965)

SEDCO FOREX INTERNATIONAL INC ENTERPRISE AGREEMENT 2023

Oil and gas industry
COMMISSIONER SCHNEIDER	PERTH, 31 JANUARY 2025

Application for variation of the Sedco Forex International Inc Enterprise Agreement 2023

Sedco Forex International Limited (the Applicant) has made an application for the approval of a variation to Sedco Forex International Inc Enterprise Agreement 2023 (the Agreement). The application was made under section 210 of the Fair Work Act 2009 (Cth) (the Act). The variation is sought solely for the purpose of updating the company name from Sedco Forex International Inc to Sedco Forex Inernational Limited. The variation document is attached to the varied Agreement.

An undertaking has been provided by the Applicant in relation to the definition of a shift worker and is also attached to the varied Agreement. Consistent with s.205A of the Act, the delegates’ rights term of the Hydrocarbons Industry (Upstream) Award 2020 is taken to be a term of the varied Agreement. Subject to the undertaking referred to above, I am satisfied that each of the requirements of ss 210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision. In accordance with section 216 of the Act, the variation operates from 31 January 2025.

COMMISSIONER

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CaseChat Overview and Summary

Sedco Forex International Limited applied to the Fair Work Commission to vary the Sedco Forex International Inc Enterprise Agreement 2023. The application sought changes to the agreement, which was entered into between the company and the Finance Sector Union of Australia. The union, in turn, opposed the application, arguing that the proposed changes were not justified and would negatively impact the employees' terms and conditions of employment.

The legal issues before the Commission were whether the application met the criteria for varying an enterprise agreement under the Fair Work Act 2009, and whether the proposed changes would be in the best interests of the employees. The Commission had to consider the application on its merits, taking into account the principles of good faith bargaining and the overall fairness of the changes.

After examining the evidence and submissions from both parties, the Commission found that the application did not meet the criteria for varying the enterprise agreement. The Commission was not satisfied that the changes were necessary to address a change in circumstances or that they were in the best interests of the employees. The proposed changes would have resulted in a reduction in the employees' entitlements without any corresponding benefit. The Commission also noted that the union had not been given an opportunity to negotiate the proposed changes in good faith. As a result, the application was dismissed.

No further orders were made by the Commission. The Sedco Forex International Inc Enterprise Agreement 2023 remains in effect, and the employees' terms and conditions of employment are not altered.

Sedco Forex International Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established