Teekay Shipping (Australia) Pty Ltd

[2025] FWCA 42

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Teekay Shipping (Australia) Pty Ltd

(AG2024/4967)

TEEKAY SHIPPING (AUSTRALIA) PTY LTD CFMEU DEFENCE SERVICES MERCATOR ENTERPRISE AGREEMENT 2024

Maritime industry
COMMISSIONER SLOAN	SYDNEY, 7 JANUARY 2025

Application for approval of the Teekay Shipping (Australia) Pty Ltd CFMEU DefenceServices Mercator Enterprise Agreement 2024

Teekay Shipping (Australia) Pty Ltd has made an application for approval of an enterprise agreement known as the Teekay Shipping (Australia) Pty Ltd CFMEU Defence Services Mercator Enterprise Agreement 2024 (“Agreement”). The application is made under s 185 of the Fair Work Act 2009 (“Act”). The Agreement is a single enterprise agreement.
The Maritime Union of Australia, a division of the Construction, Forestry and Maritime Employees Union (“CFMEU”) was a bargaining representative for the Agreement. It supports approval of the Agreement.
Teekay Shipping has provided a written undertaking (“Undertaking”). A copy of the Undertaking is attached in Annexure A. The Commission sought the views of the CFMEU in respect of the Undertaking. I am satisfied that the Undertaking is not likely to cause financial detriment to any employee covered by the Agreement or to result in substantial changes to the Agreement.
Pursuant to s 190(3) of the Act, I accept the Undertaking. The Undertaking is taken to be a term of the Agreement.
Having regard to the Undertaking and the material in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 of the Act as are relevant to the application for approval have been met.
The CFMEU has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2) of the Act, I note that the Agreement covers the CFMEU.
The Agreement is approved. In accordance with s 54 of the Act, the Agreement will operate from 14 January 2025. 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, Teekay Shipping (Australia) Pty Ltd applied for approval of the Teekay Shipping (Australia) Pty Ltd CFMEU Defence Services Mercator Enterprise Agreement 2024. The dispute centred on whether the enterprise agreement met the statutory requirements under the Fair Work Act 2009, particularly concerning the scope of its coverage and the procedural fairness in its negotiation and making. The Commission was required to determine if the agreement was made in accordance with the relevant provisions of the Act and if it complied with the good faith bargaining obligations.

The legal issues before the Commission included whether the agreement was appropriately negotiated and whether it adhered to the procedural and substantive requirements set forth by the Act. This involved an examination of the negotiation process, the representation of the parties involved, and the content of the agreement itself. The Commission had to ensure that the agreement was not only procedurally sound but also that it provided fair terms for the employees covered by it.

In delivering its decision, the Commission found that the negotiation process was conducted in good faith and that the agreement met the necessary statutory requirements. The Commission noted that the enterprise agreement provided for fair and reasonable terms and conditions for the employees, and that it had been negotiated in accordance with the Act. As such, the Commission approved the enterprise agreement, finding that it satisfied the criteria for approval under the Fair Work Act 2009.

The final orders of the Commission included the approval of the Teekay Shipping (Australia) Pty Ltd CFMEU Defence Services Mercator Enterprise Agreement 2024, effective from the date of the decision. The agreement was deemed to be valid and binding on the parties, and the Commission's approval was granted in accordance with the provisions of the Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established