Note: An appeal pursuant to s.604 (C2013/5069) was lodged against this decision - refer to Full Bench decision dated 24 October 2013 [[2013] FWCFB 8338] for result of appeal.

[2013] FWC 4033

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FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009
Sch. 5, Item 6 - Review of all modern awards (other than modern enterprise and State PS awards) after first 2 years

VSHIPS Australia Pty Ltd; CSL Australia Pty Ltd
(AM2012/346)

Maritime industry

VICE PRESIDENT WATSON

SYDNEY, 21 JUNE 2013

Application to vary the Seagoing Industry Award 2010 - Preamble to Part B of the Award - Modern Awards objective - Fair Work Act 2009 - Fair Work (Transitional Provisions) Act 2009 - Navigation Act 1912 - Coastal Trading (Revitalising Australian Shipping) Act 2012.

Introduction

[1] This decision concerns one part of an application by VSHIPS Australia Pty Ltd (VSHIPS) and CSL Australia Pty Ltd (CSL) to vary the Seagoing Industry Award 2010 (the Award). This decision covers the amended application provided by VSHIPS and CSL and deals with the preamble to Part B of the Award. The application is made on the basis that portions of the Award have not been operating effectively, efficiently or in accordance with the modern award objectives.

[2] The matter was originally listed for hearing on 20 March 2013. At the hearing, VSHIPS and CSL were represented by Ms S Zeitz. Ms Zeitz handed up an amended application, and the matter was adjourned to allow the parties to put further written submissions on the amended application. The matter was listed for further hearing on 24 May 2013. With consent of the parties, evidence and submissions were put in relation to the preamble matter, and the remaining matters will be dealt with by further hearing at a later date.

[3] At the hearing, Mr M Gibian, of counsel, appeared for The Australian Maritime Officers’ Union (AMOU), Mr N Niven appeared for The Australian Institute of Marine and Power Engineers (AIMPE), Mr W McNally appeared for The Maritime Union of Australia (MUA) and Mr A Morris appeared for the Australian Shipowners’ Association (ASA) and Shipping Australia Limited (SAL).

[4] Each of these parties filed written submissions in response to the amended application. In addition, the National Bulk Commodities Group and Cement Industry Foundation provided written submissions but did not attend the hearing.

The Variation Sought

[5] The application by VSHIPS and CSL seeks to vary the preamble to Part B of the Award, and to add a new definition to clause 3 of the Award. The current form of the preamble to Part B reads:

[6] The variation sought by VSHIPS and CSL would change the preamble to read:

[7] In addition, VSHIPS and CSL seek to have a definition of ‘Temporary Licensed Ship’ added to clause 3, which would read as follows:

[8] When the Award was originally made, the preamble to Part B read:

[9] The preamble to Part B was varied by a decision ([2012] FWA 9092) and determination [PR530596] in August of 2012 due to changes in the legislative scheme governing permits and licensing in the coastal trade.

[10] Prior to the Coastal Trading (Revitalising Australian Shipping) Act 2012 (the Coastal Trading Act), the Award referred to vessels issued permits under the Navigation Act 1912 (Navigation Act).

Changes to the Legislative Scheme

[11] Prior to the introduction of the Coastal Trading Act, the Navigation Act 1912 (Navigation Act) gave the Minister the authority to issue either single voyage or continuing voyage permits to ships. At the time the Award was made, Part B applied to vessels which had a permit issued pursuant to s.286 of the Navigation Act, and which carried out coasting trade in accordance with that permit. Coasting trade was defined in s.7 of the Navigation Act. Part B did not apply to ships (such as foreign flagged ships) merely present in the Economic Exclusion Zone or in waters above the Australian continental shelf, unless they held a permit and were engaging in coastal trade or they were Australian ships as described in s 33 of the FW Act.

[12] Regulation 1.15E of the Fair Work Regulations 2009 (FW Regulations), at the time the Award was made, extended the coverage of the FW Act to permit ships present in the Economic Exclusion Zone or the waters above the continental shelf and engaging in coasting trade. The term ‘permit ship’ was defined in regulation 1.15B, and covered ships which were issued a permit under s.286 of the Navigation Act where the permit is in force and which engages in coasting trade under the permit.

[13] The regulation of coastal shipping previously governed by the Navigation Act is now governed by the Coastal Trading Act. Under the Coastal Trading Act, the Minister is able to issue three types of permits:

[14] Licenses issued prior to the legislative changes were preserved in certain circumstances as Transitional General Licenses.

[15] The current regulation 1.15E of the FW Regulations extends coverage to emergency licensed ships, general licensed ships, temporary licensed ships and transitional general licensed ships, subject to the concurrent jurisdiction of foreign States and Australia’s international obligations regarding foreign ships. Regulation 1.03 defines a temporary licensed ship as a ship that is used to undertake a voyage authorised by a temporary licence.

[16] Under the current regulation 1.15B of the FW Regulations, ‘temporary licence’ has the meaning given by s.6(1) of the Coastal Trading Act. Section 6 of the Coastal Trading Act further states that the term ‘voyage’ as “the movement of a vessel from one port to another port in a way that would satisfy paragraph 7(1)(a), (b) or (c)” of the Coastal Trading Act.

[17] Section 7 of the Coastal Trading Act relevantly provides:

The Nature of the Award Review

[18] Sch. 5, Item 6 of the Transitional Act provides:

[19] Further provisions of the Act are also applicable and relevant to the 2012 Review. Section 134 provides as follows:

...

[18] On the issue of the application of s.138 of the Act to the 2012 Review, the 2012 Review Full Bench stated: 1

[20] The variation sought needs to be considered against this legislative test.

Should the variation be made?

[21] CSL and VSHIPS submit that the variation will remedy an ambiguity arising from the amendments to the Award required by the introduction of the Coastal Trading Act. In their submission, ambiguity is inconsistent with the modern award objectives.

[22] More specifically, CSL and VSHIPS submit that under the Navigation Act legislative scheme, Part B of the Award applied to permit ships only when they were actively engaging in the coasting trade, not merely because they were inside the economic exclusion zone or the waters above the continental shelf of Australia. They submit that Part B was intended to apply when a ship was not engaged in coastal trade. For example, if the ship had been issued with a permit but was on a ballast voyage, Part B would not apply, but once the ship commenced a ‘voyage’ within the meaning of s.7 of the Navigation Act the Award would then apply. They submit that the same position should apply now that the Coastal Trading Act governs the situation by way of provisions that are substantially the same.

[23] Further, CSL and VSHIPS submit that this interpretation reflects the plain meaning and intention of the Navigation Act at the time it was made. They submit that the intention of the framers of the Coastal Trading Act was that the level of coverage under the Navigation Act would be preserved by the Coastal Trading Act, and that as such an interpretation of the preamble to Part B which extends the scope of Award coverage would be contrary to the intended purpose of the Coastal Trading Act. CSL and VSHIPS submit that this gives rise to an ambiguity. In their submission, the variation to the preamble to Part B is necessary to clarify the application of the Award.

[24] The AMOU submits that a question may arise as to whether a vessel is undertaking a voyage authorised by a temporary licence when proceeding to a port to be loaded or on a ballast leg between two voyages. It submits that this issue should not be determined by way of varying the scope of the Award and that the scope of an award necessarily depends on the provisions of the Act. It submits that the Commission should not seek to cut across the legislative choices of parliament.

[25] In my view the Award should have clear provisions as to its scope and application. Important obligations arise from the Award and the need for compliance requires as much clarity as possible. The variations sought essentially utilise the concepts contained in the Coastal Trading Act. Those provisions expressly extend to loading and unloading as well as the voyage in between. It is accepted by all parties that it is unclear whether the concept extends beyond that. However I do not consider that it is desirable or consistent with the modern awards objective for this ambiguity to be left unresolved. If clarification emerges from a judicial determination of the scope of the legislation, this of course would be a basis for reviewing this position.

[26] In my view adopting the wording contained in the application is an appropriate way of resolving the ambiguity. No party has suggested any other credible alternative. I am therefore satisfied that CSL and VSHIPS have established a case for the variation and I will make the variation sought in the application by way of a determination [PR538111] to be issued with this decision. Other outstanding matters will be determined after the hearings are completed in relation to those matters.

VICE PRESIDENT WATSON

Appearances:

Ms S Zeitz for CSL and VSHIPS

Mr M Gibian, of counsel, for The Australian Maritime Officers’ Union

Mr N Niven for The Australian Institute of Marine and Power Engineers

Mr W McNally for The Maritime Union of Australia

Mr A Morris for the Australian Shipowners’ Association and Shipping Australia Limited

Hearing details:

2013.

Sydney.

May 24

 1   [2012] FWAFB 5600.

Printed by authority of the Commonwealth Government Printer

<Price code C, MA000122  PR538110 >