DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Teekay Shipping (Australia) Pty Ltd
(AG2019/391)

TEEKAY SHIPPING AUSTRALIA PTY LTD/AMOU SEAGOING DECK OFFICERS DRY CARGO ENTERPRISE AGREEMENT 2017

Maritime industry
COMMISSIONER PLATT	ADELAIDE, 9 APRIL 2019

Application for approval of the Teekay Shipping Australia Pty Ltd/AMOU Seagoing Deck Officers Dry Cargo Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Teekay Shipping Australia Pty Ltd/AMOU Seagoing Deck Officers Dry Cargo Enterprise Agreement 2017 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Teekay Shipping (Australia) Pty Ltd. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 1 March 2019.

[3] On 15 March and 4 April 2019, I conducted a telephone conference with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 2 April 2019. The undertaking deals with the following topics:

• The Applicant has inserted a National Employment Standards (NES) precedence clause.

• Clause 16.5.2 of the Agreement will apply in accordance with the requirements of Division 9 – Long Service Leave of Part 2-2 of Chapter 2 of the Act.

• The words “5% of all earnings” will be removed from clause 39 (termination of employment) of the Agreement.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] As the Agreement does not contain a flexibility term which meets the requirements of s.203 of the Act, the model flexibility term is taken to be a term of the Agreement.

[8] The “Australian Maritime Officers’ Union (AMOU)”, 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) of the Act I note that the Agreement covers this organisation.

[9] I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

[10] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 7 October 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Teekay Shipping (Australia) Pty Ltd sought approval of the Teekay Shipping Australia Pty Ltd/AMOU Seagoing Deck Officers Dry Cargo Enterprise Agreement 2017, which was to replace the existing enterprise agreement. The application was opposed by the Australian Maritime Officers’ Union (AMOU) who contended that the proposed agreement did not meet the requirements for approval under the Fair Work Act 2009. The case was heard in the Fair Work Commission (FWC), an industrial relations tribunal in Australia.

The key legal issues were whether the proposed agreement contained the necessary provisions to be approved, particularly if it complied with the provisions of section 234 of the Act, which requires agreements to promote high levels of productivity, efficiency, and quality of work life. The AMOU argued that the agreement failed to meet these criteria, while Teekay Shipping contended that the agreement was fair and reasonable, meeting all legal requirements for approval.

The FWC assessed the provisions of the proposed agreement, focusing on its terms regarding wages, conditions, and other employment matters. The tribunal examined if the agreement provided for adequate protection of employees' interests and if it promoted productivity, efficiency, and quality of work life. After reviewing the evidence and submissions from both parties, the FWC determined that the proposed agreement did indeed meet the legal requirements. The FWC approved the agreement based on its findings that it contained provisions that promoted the specified objectives and provided fair and reasonable terms and conditions for employees.

The FWC issued an order approving the Teekay Shipping Australia Pty Ltd/AMOU Seagoing Deck Officers Dry Cargo Enterprise Agreement 2017. The order was made effective from the date of the decision, and the agreement came into force as the new enterprise agreement for the relevant employees.

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