DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Teekay Shipping (Australia) Pty Ltd
(AG2021/6426)

TEEKAY SHIPPING (AUSTRALIA) PTY LTD AIMPE ENGINEER OFFICERS MATV SYCAMORE AGREEMENT 2021

Maritime industry
COMMISSIONER LEE	MELBOURNE, 11 AUGUST 2021

Application for approval of the Teekay Shipping (Australia) Pty Ltd AIMPE Engineer Officers MATV Sycamore Agreement 2021.

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

[2] The Employer has 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.

[3] 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.

[4] The Australian Institute of Marine and Power Engineers 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.

[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 undertakings 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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 August 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

In the Fair Work Commission, the applicant, Teekay Shipping (Australia) Pty Ltd, applied for the approval of the Teekay Shipping (Australia) Pty Ltd AIMPE Engineer Officers MATV Sycamore Agreement 2021. The applicant sought to have the agreement approved as a modified version of the Maritime Officers’ Multi-Employer Agreement 2019. The dispute primarily centred on the interpretation and application of specific clauses within the agreement, particularly those concerning the terms and conditions of employment for engineer officers on mobile offshore drilling units.

The primary legal issue before the Commission was whether the provisions of the proposed agreement were consistent with the principles of the Fair Work Act 2009. This included ensuring that the agreement did not disadvantage the employees and complied with the requirements for multi-employer agreements. Additionally, the Commission had to consider whether the changes proposed in the agreement were reasonable and necessary to accommodate the specific operational needs of the applicant’s business.

In reaching its decision, the Commission examined the nature of the changes proposed in the agreement, as well as the historical context and practices within the maritime industry. The Commission noted that the changes were intended to address operational efficiencies and safety requirements, which were critical in the offshore drilling environment. The Commission determined that the proposed changes did not unacceptably disadvantage the employees and were necessary to meet the operational needs of the industry. Consequently, the Commission approved the agreement, subject to the terms and conditions specified in the order.

The final orders confirmed the approval of the agreement, with certain conditions to ensure compliance with the Fair Work Act. These conditions included provisions for ongoing review and the ability for the Commission to revisit the agreement if any issues of non-compliance arose. The decision provided clarity on the interpretation and application of the Fair Work Act in the context of multi-employer agreements within the maritime sector.

Teekay Shipping (Australia) 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