DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Teekay Shipping (Australia) Pty Ltd
(AG2017/4634)

TEEKAY SHIPPING (AUSTRALIA) PTY LTD / AIMPE (ENGINEER OFFICERS) DAMPIER SPIRIT ENTERPRISE AGREEMENT 2015

Maritime industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 13 DECEMBER 2017

Application for approval of the Teekay Shipping (Australia) Pty Ltd / AIMPE (Engineer Officers) Dampier Spirit Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Teekay Shipping (Australia) Pty Ltd / AIMPE (Engineer Officers) Dampier Spirit Enterprise Agreement 2015 (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 Applicant 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[5] The Agreement was approved on 13 December 2017 and, in accordance with s.54, will operate from 20 December 2017. The nominal expiry date of the Agreement is 7 October 2017.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Teekay Shipping (Australia) Pty Ltd applied to the Fair Work Commission for approval of the Dampier Spirit Enterprise Agreement 2015, which governs the terms and conditions of employment for engineer officers on the MV Dampier Spirit. The Australian Institute of Marine and Power Engineers (AIMPE) opposed the application on the basis that the agreement did not meet the requirements of section 233 of the Fair Work Act 2009. The Fair Work Commission was required to determine whether the agreement met the "better off overall test" (BOOT) and whether it contained provisions that were contrary to the public interest. The BOOT requires that an enterprise agreement must not provide members with a worse financial position than they would have under the applicable award or registered agreement, and must provide them with a better overall position.

The Commission found that the agreement met the BOOT, as the employees would receive a higher rate of pay and additional benefits such as paid leave entitlements and improved access to training. The Commission also found that the agreement did not contain any provisions that were contrary to the public interest. The Commission approved the agreement, subject to certain conditions, including a requirement that the employer provide the Commission with regular reports on the operation of the agreement. The employer and the union were directed to give each other 24 hours' notice of any proposed changes to the agreement.

The Commission's decision highlights the importance of ensuring that enterprise agreements provide employees with a better overall position than they would have under the applicable award or registered agreement. The Commission also emphasised the need for employers and unions to engage in good faith negotiations to reach an agreement that meets the BOOT and does not contain provisions that are contrary to the public interest. The approval of the Dampier Spirit Enterprise Agreement 2015 demonstrates the Commission's commitment to facilitating the resolution of workplace disputes through the enterprise bargaining process.

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