DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Subsea 7 Australia Contracting Pty Ltd
(AG2019/1609)

SUBSEA 7 AUSTRALIA CONTRACTING PTY LTD DIVING ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 4 JUNE 2019

Application for approval of the Subsea 7 Australia Contracting Pty Ltd Diving Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Subsea 7 Australia Contracting Pty Ltd Diving Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Subsea 7 Australia Contracting Pty Ltd. 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 Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 June 2019. The nominal expiry date of the Agreement is 15 August 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Subsea 7 Australia Contracting Pty Ltd, which sought approval for its Diving Enterprise Agreement 2018. The Fair Work Commission was tasked with evaluating the fairness and compliance of the agreement with relevant labour laws and regulations. The union representing the workers, the Construction, Forestry, Maritime, Mining and Energy Union, contested the agreement, arguing it was not fair and did not meet the necessary criteria for approval.

The legal issues before the Commission centred on whether the proposed agreement met the requirements under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was procedurally and substantively fair. Procedural fairness required evidence of genuine bargaining between the parties, while substantive fairness entailed an assessment of whether the terms of the agreement were reasonable and equitable for the employees.

The Commission found that the agreement was procedurally fair as it was the product of genuine bargaining. However, regarding substantive fairness, the Commission noted that the agreement contained certain terms that were not fair and reasonable. The Commission made several adjustments to the agreement to ensure it met the fairness criteria. These changes included modifications to the rates of pay and the conditions of employment to better align with industry standards and protect employee rights. Ultimately, the Commission approved the agreement with the amended terms, ensuring it complied with the necessary legal requirements.

Subsea 7 Australia Contracting Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established