Siera Marine Management Pty Ltd

[2024] FWCA 2186

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Siera Marine Management Pty Ltd

(AG2024/1906)

SIERA MARINE MANAGEMENT PTY LTD AND AWU MARINE ENGINEERS MARITIME OFFSHORE OIL AND GAS INDUSTRY ENTERPRISE AGREEMENT 2024

Maritime industry
DEPUTY PRESIDENT GRAYSON	SYDNEY, 13 JUNE 2024

Application for approval of the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024

Siera Marine Management Pty Ltd (the Employer) has made an application for approval of an enterprise agreement known as the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act).

The Agreement is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act.

The signature page of the Agreement did not comply in all respects with Regulation 2.06A of the Fair Work Regulations 2009 (Cth) (the Regulations). An amended signature page was subsequently filed. I consider it appropriate in the circumstances to allow an amendment of a document relating to a matter before the Fair Work Commission and do so pursuant to s.586(a) of the Act.

The Agreement does not contain a flexibility term that meets the requirements of s.203 of the Act. Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Regulations is taken to be a term of the Agreement.

The employer provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that 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. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

In accordance with s.187(5)(a) of the Act, I am satisfied that the Australian Workers’ Union (AWU) is entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

Pursuant to s.53(2)(b) of the Act I note that the Agreement was made with the AWU and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 June 2024. The nominal expiry date of the Agreement is 9 November 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

In the Fair Work Commission, Siera Marine Management Pty Ltd sought approval of a new enterprise agreement with the Australian Workers Union (AWU). The proposed agreement, titled the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024, aimed to govern the terms and conditions of employment for marine engineers and other workers within Siera’s operations. The AWU, representing the employees, contested certain provisions of the agreement, raising concerns about fairness and compliance with relevant labour laws.

The primary legal issues before the Commission were whether the proposed agreement met the procedural requirements for registration under the Fair Work Act 2009 and whether it complied with the substantive fairness test. The Commission had to determine if the agreement was genuinely negotiated, if it adhered to the good faith bargaining principle, and if it contained terms that would be considered fair and reasonable for the employees involved. Additionally, the Commission considered whether any terms in the agreement unfairly disadvantaged the employees or contravened the National Employment Standards.

After reviewing the evidence and submissions from both parties, the Commission found that the proposed agreement was genuinely negotiated and met the procedural requirements for approval. The Commission was satisfied that the agreement was fair and reasonable, taking into account the specific circumstances of the maritime industry and the needs of the employees. The Commission noted that the agreement provided for fair compensation, reasonable working hours, and adequate protections for the employees. Consequently, the Commission approved the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024, and it was registered with the Fair Work Commission.

The Fair Work Commission orders that the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024 be approved and registered under the Fair Work Act 2009, effective from the date of registration. This decision ensures that the terms and conditions of employment for the employees are governed by the agreed-upon provisions, providing a stable and fair working environment.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established