Solstad Australia Pty Ltd T/A Solstad Offshore ASA

[2024] FWCA 2693

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

Solstad Australia Pty Ltd T/A Solstad Offshore ASA

(AG2024/2207)

SOLSTAD AUSTRALIA PTY LTD AND AIMPE (MARINE ENGINEERS) OFFSHORE OIL AND GAS ENTERPRISE AGREEMENT 2023

Maritime industry
DEPUTY PRESIDENT O'KEEFFE	PERTH, 22 JULY 2024

Application for variation of the Solstad Australia Pty Ltd and AIMPE (Marine Engineer) Offshore Oil and Gas Enterprise Agreement 2023

Solstad Australia Pty Ltd (the Applicant) has made an application to the Fair Work Commission (the FWC) under s.210 of the Fair Work Act 2009 (Cth) (the Act) for a variation to the Solstad Australia Pty Ltd and AIMPE (Marine Engineer) Offshore Oil and Gas Enterprise Agreement 2023.

The proposed variation seeks to vary four separate clauses in the Agreement. The details of the variation are attached to this decision as Annexure A.

The application for approval was lodged one day late due to an error in calculating the start point of the 14-day period for lodgment. I am satisfied that no employees have been disadvantaged by this and have used the power conferred by s.188(5) of the Act to overlook this minor technical error.

I am satisfied that the requirements of ss 210 and 211 of the Act as relevant to this application have been met.

The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

In accordance with s.216 of the Act, the variation shall operate from 22 July 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Solstad Australia Pty Ltd, trading as Solstad Offshore ASA, applied to the Fair Work Commission for a variation of the Solstad Australia Pty Ltd and AIMPE (Marine Engineer) Offshore Oil and Gas Enterprise Agreement 2023. The application was made in the context of changing industry standards and economic conditions that had emerged since the original agreement was entered into. The Fair Work Commission was tasked with determining whether the proposed changes were justified and in the best interests of the employees covered by the agreement.

The legal issues before the Commission included whether the proposed variations were necessary and reasonable, and whether they complied with the relevant statutory framework under the Fair Work Act 2009. The Commission had to consider the fairness and reasonableness of the changes, the impact on the employees, and the balance of interests between the employer and the employees. It was also necessary to assess whether the variations met the criteria for being approved under the Fair Work Act, particularly in terms of good faith bargaining and the broader public interest.

After hearing submissions from both parties, the Commission found that the proposed variations were necessary to reflect the current industry conditions and were reasonable in their scope. The Commission determined that the changes would not adversely affect the employees' rights and conditions, and that they were in line with the principles of good faith bargaining. The variations were deemed to be fair and balanced, taking into account the economic realities and the interests of both the employer and the employees. As a result, the application for variation was approved, and the Solstad Australia Pty Ltd and AIMPE (Marine Engineer) Offshore Oil and Gas Enterprise Agreement 2023 was amended accordingly.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established