Teekay Shipping (Australia) Pty Ltd Summary

[2025] FWCA 1174

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s 185—Enterprise agreement

Teekay Shipping (Australia) Pty Ltd

(AG2025/655)

TEEKAY SHIPPING (AUSTRALIA) PTY LTD NINGALOO VISION FPSO AMOU AWU CFMEU AGREEMENT 2025

Oil and gas industry
COMMISSIONER LIM	PERTH, 7 APRIL 2025

Application for approval of the Teekay Shipping (Australia) Pty Ltd Ningaloo Vision FPSO AMOU AWU CFMEU Agreement 2025.

Teekay Shipping (Australia) Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the Teekay Shipping (Australia) Pty Ltd Ningaloo Vision FPSO AMOU AWU CFMEU Agreement 2025 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

The title of the Agreement on the Notice of Employee Representational Rights (the NERR) is “Teekay Shipping (Australia) Pty Ltd Ningaloo Vision FPSO AMOU AWU CFMEU Agreement 2025” whilst the Agreement title in clause 1 was “Teekay Shipping (Australia) Pty Ltd Ningaloo Vision AMOU AWU CFMEU Agreement 2025”. Pursuant to s 188(5) of the Act, I am satisfied that the Agreement would have been genuinely agreed to but for the minor technical errors made in relation to the requirements set out in s 174(1A) of the Act. I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the errors. As a result, I am satisfied that the Agreement has been genuinely agreed within the meaning of s 188(5) of the Act.

On Friday 28 March 2025, the Applicant submitted that the title of the Agreement provided at Clause 1 ought to be aligned with the one provided in the NERR on the basis that the wording in the NERR was the one that had been “overwhelmingly approved by the employees concerned in the agreement ballot”. No objections were raised. Pursuant to s 586 of the Act, I am satisfied that the amendment should be made and that it is appropriate to do so.

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.

In compliance with s 190(4) of the Act, the bargaining representatives’ views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, 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.

Clause 9 of the Agreement does not require that an individual flexibility arrangement must meet the genuine needs of employer and employee as required by s 202(1) of the Act. Employees were asked to vote to approve the agreement from between 25 February 2025 through to 28 February 2025. In accordance with s 202(4) and Clause 107 of Schedule 1 of the Act, the model flexibility term as prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

The Australian Maritime Officers' Union, the Australian Workers’ Union, and the Construction, Forestry and Maritime Employees Union (together, the organisations), 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), and based on the declarations provided by the organisations, I note that the organisations are covered by the Agreement.

The Agreement was approved on 7 April 2025 and, in accordance with s 54, will operate from 14 April 2025. The nominal expiry date of the Agreement is 11 February 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

In the Fair Work Commission, the applicant, Teekay Shipping (Australia) Pty Ltd, sought approval of an enterprise agreement, referred to as the Teekay Shipping (Australia) Pty Ltd Ningaloo Vision FPSO AMOU AWU CFMEU Agreement 2025. The dispute centred on whether the agreement complied with the relevant provisions of the Fair Work Act 2009, including requirements for the proper representation of employees and the substantive terms and conditions of employment. The Commission was required to determine whether the agreement met the legal criteria for approval, including the procedural fairness in its negotiation and the substantive fairness of its terms.

The legal issues before the Commission involved the validity of the agreement's negotiation process and whether it adhered to the procedural requirements outlined in the Fair Work Act. Additionally, the Commission had to assess whether the agreement contained terms that were substantively fair in light of the general principles of industrial law. This included an examination of whether the agreement provided for adequate protections for employees, particularly those represented by the Australian Maritime Officers' Union and the Australian Workers' Union.

In delivering its decision, the Commission found that the agreement was negotiated in good faith and followed the procedural requirements set out in the Fair Work Act. The Commission also determined that the substantive terms of the agreement were fair and reasonable, providing appropriate protections and benefits to the employees. The Commission approved the agreement, noting the importance of maintaining a stable industrial relationship and the mutual benefits the agreement provided to both the employer and the employees.

The Fair Work Commission approved the Teekay Shipping (Australia) Pty Ltd Ningaloo Vision FPSO AMOU AWU CFMEU Agreement 2025, effective from the date of the decision. This approval ensures that the agreement will govern the employment conditions of the relevant employees and will remain in force until superseded by a new agreement or terminated in accordance with the Fair Work Act.

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