DECISION

Fair Work Act 2009
s.185—Enterprise agreement

TEK-Ocean Energy Services Pty Ltd
(AG2018/1783)

TEK-OCEAN ENERGY SERVICES PTY LTD MARITIME OFFSHORE OIL AND GAS INDUSTRY ENGINEERS ENTERPRISE AGREEMENT 2018

Maritime industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 25 SEPTEMBER 2018

Application for approval of the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by TEK-Ocean Energy Services 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.

[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] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2018. The nominal expiry date of the Agreement is 24 September 2022.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of the Fair Work Commission, the applicant, TEK-Ocean Energy Services Pty Ltd, sought approval for the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Enterprise Agreement 2018. The dispute involved the terms and conditions of employment for engineers working in the offshore oil and gas industry. The Commission was tasked with determining whether the proposed agreement met the necessary requirements under the Fair Work Act 2009.

The central legal issues before the Commission were whether the agreement complied with the provisions of the Fair Work Act and whether it met the criteria for being a "better off overall test" (BOOT) agreement. The applicant argued that the agreement provided for fair and reasonable terms and conditions that were better off for the employees overall when compared to the applicable award. The Commission needed to assess the fairness of the proposed terms and the extent to which they provided for better outcomes for the employees.

The Fair Work Commission found that the proposed agreement was fair and reasonable, and that it met the requirements of the Act. The Commission considered the nature of the work and the industry, the terms of the agreement, and the benefits it provided to the employees. The Commission was satisfied that the agreement provided for better wages and conditions than those provided under the applicable award, thereby satisfying the BOOT test. As a result, the Commission approved the agreement and issued a certificate of registration for the TEK-Ocean Energy Services Pty Ltd Maritime Offshore Oil and Gas Industry Engineers Enterprise Agreement 2018. This decision provides clarity for employers and employees in the offshore oil and gas industry regarding the terms and conditions of employment.

TEK-Ocean Energy Services 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