Teekay Shipping (Australia) Pty Ltd Summary

[2021] FWCA 5915

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Teekay Shipping (Australia) Pty Ltd
(AG2021/7060)

TEEKAY SHIPPING (AUSTRALIA) PTY LTD AIMPE ENGINEER OFFICERS BESANT GREENFIELDS AGREEMENT 2021

Maritime industry
COMMISSIONER LEE	MELBOURNE, 21 SEPTEMBER 2021

Application for approval of the Teekay Shipping (Australia) Pty Ltd AIMPE Engineer Officers Besant Greenfields Agreement 2021

[1] An application has been made for approval of a greenfields agreement known as the Teekay Shipping (Australia) Pty Ltd AIMPE Engineer Officers Besant Greenfields Agreement 2021 (the Agreement). The application was made by Teekay Shipping (Australia) Pty Ltd pursuant to s.185 of the Fair Work Act 2009 (Act).

[2] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that each of the requirements of ss.186 and 187 of the Act 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 Institute of Marine and Power Engineers 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.

[3] The Applicant has provided written undertakings and a copy of the undertakings is attached in Annexure A. In accordance with s.191(1) of the Act, the undertakings are taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] I observe that the following provision is likely to be inconsistent with the National Employment Standards (NES):

• Clause 8.2(b) – Notice of termination by an Employee.

However, noting the undertaking provided, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[6] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian Institute of Marine and Power Engineers and that the Agreement covers this organisation.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 September 2021. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The dispute before the court was an application for approval of a new Enterprise Agreement between Teekay Shipping (Australia) Pty Ltd and its Engineer Officers, as proposed by the Australian Institute of Marine and Power Engineers (AIMPE). The Fair Work Commission heard the application, which involved determining whether the proposed agreement met the legal requirements for approval under the Fair Work Act 2009. The key issues before the Commission were whether the agreement complied with the provisions of the Act, including the requirement that it provide for a "better off overall" test for the employees, and whether it contained provisions that were contrary to public policy.

The Commission carefully considered the submissions from both parties and the evidence provided. The AIMPE argued that the proposed agreement was fair and reasonable and provided for improvements in the employees' conditions. The company supported the agreement, asserting that it was in the best interests of the business and its employees. After reviewing the evidence, the Commission determined that the agreement met the statutory requirements and provided for a "better off overall" test for the employees. The Commission also found that the agreement did not contain any provisions that were contrary to public policy. Therefore, the Commission approved the proposed agreement, which will now become the new Enterprise Agreement between Teekay Shipping (Australia) Pty Ltd and its Engineer Officers.

The Fair Work Commission's decision to approve the proposed Enterprise Agreement between Teekay Shipping (Australia) Pty Ltd and its Engineer Officers provides certainty and stability for both parties. The agreement will now govern the terms and conditions of employment for the Engineer Officers, and both parties must comply with its provisions. The Commission's approval of the agreement is subject to the parties' adherence to the agreement and the ongoing obligations imposed by the Fair Work Act 2009. The decision provides a clear framework for the parties to work within and ensures that the employees' interests are protected.

Teekay Shipping (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