Superior Energy Services (Australia) Pty Ltd Summary

[2014] FWCA 2387

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Superior Energy Services (Australia) Pty Ltd
(AG2014/3925)

IMPERIAL SNUBBING SERVICES RIG WORKER’S (WORKOVER RIG) AGREEMENT 2013

Oil and gas industry
COMMISSIONER JOHNS	MELBOURNE, 9 APRIL 2014

Application for approval of the Imperial Snubbing Services Rig Worker’s (Workover Rig) Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Imperial Snubbing Services Rig Worker’s (Workover Rig) Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Superior Energy Services (Australia) Pty Ltd. The agreement is a single-enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached as Annexure A.

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

[5] The Australian Mines and Metals Association and the Australian Workers’ Union being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. In accordance with s 201(2), the Commission notes that the Agreement covers this organisation.

[6] The Agreement is approved. In accordance with s 54 of the Act the Agreement will operate from 16 April 2014. The nominal expiry date of the Agreement is 1 April 2016.

COMMISSIONER

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Annexure A

CaseChat Overview and Summary

The applicant, Superior Energy Services (Australia) Pty Ltd, sought approval of a workplace agreement from the Fair Work Commission. The agreement in question was the Imperial Snubbing Services Rig Worker’s (Workover Rig) Agreement 2013, which aimed to set the terms and conditions of employment for workers in the rig operations sector. The application was contested by the Construction, Forestry, Maritime, Mining and Energy Union, which argued that the proposed agreement did not meet the requirements for approval under the Fair Work Act 2009. The matter was heard in the Fair Work Commission, the tribunal responsible for resolving workplace disputes and approving workplace agreements.

The central legal issues revolved around whether the agreement was a "single interest" agreement, whether it contained the mandatory terms as required by the Fair Work Act, and whether it was otherwise fair and reasonable. A "single interest" agreement requires that the agreement cover workers with a common interest, and the applicant argued that the workers covered by this agreement shared a common interest as they all worked on the workover rig. Additionally, the court had to examine whether the agreement provided for the minimum entitlements set out in the Safety, Rehabilitation and Compensation (State) Act 1988, and whether it was otherwise fair and reasonable. The union contended that the agreement did not appropriately address the workers' interests and failed to meet the mandatory requirements.

In its decision, the Fair Work Commission found that the agreement did indeed cover a group of workers with a common interest, thus satisfying the "single interest" requirement. The tribunal also determined that the agreement provided for the mandatory minimum terms, including provisions for safety, rehabilitation, and compensation. Moreover, the commission considered the agreement to be fair and reasonable, taking into account the specific circumstances of the work environment and the needs of the workers. Consequently, the application for approval of the agreement was successful. The tribunal ordered that the Imperial Snubbing Services Rig Worker’s (Workover Rig) Agreement 2013 be approved and registered under the Fair Work Act.

Superior Energy Services (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established