Maritime Offshore Oil and Gas Award 2010

The above award was first made on 4 September 2009 [PR988946]

This consolidated version of the award includes variations made on 16 December 2009 [PR991595]

NOTE: Transitional provisions may apply to certain clauses - see clause 2 and Schedule A

Table of Contents

[Varied by PR991595]

Part 1 - Application and Operation

1.              Title

2.              Commencement and transitional

3.              Definitions and interpretation

4.              Coverage

5.              Access to the award and the National Employment Standards

6.              The National Employment Standards and this award

7.              Award flexibility

Part 2 - Consultation and Dispute Resolution

8.              Consultation regarding major workplace change

9.              Dispute resolution

Part 3 - Types of Employment and Termination of Employment

10.              Types of employment

11.              Termination of employment

12.              Redundancy

Part 4 - Minimum Wages and Related Matters

13.              Classifications and minimum wage rates

14.              Allowances

15.              Payment of wages

16.              National training wage

Part 5 - Hours of Work and Related Matters

17.              Hours of work

Part 6 - Leave and Public Holidays

18.              Leave factor

19.              Personal/carr's leave and compassionate leave

20.              Community service leave

21.              Public holidays

22.              Annual leave

Schedule A - Transitional Provisions

Schedule B - National Training Wage

Part 1 - Application and Operation

1.              Title

This award is the Maritime Offshore Oil and Gas Award 2010.

2.              Commencement and transitional

[2 substituted by PR991595]

2.1              This award commences on 1 January 2010.

2.2              The monetary obligations imposed on employers by this award may be absorbed into overaward payments. Nothing in this award requires an employer to maintain or increase any overaward payment.

2.3              This award contains transitional arrangements which specify when particular parts of the award come into effect. Some of the transitional arrangements are in clauses in the main part of the award. There are also transitional arrangements in Schedule A. The arrangements in Schedule A deal with:

·              minimum wages and piecework rates

·              casual or part-time loadings

·              Saturday, Sunday, public holiday, evening or other penalties

·              shift allowances/penalties.

2.4              Neither the making of this award nor the operation of any transitional arrangements is intended to result in a reduction in the take-home pay of employees covered by the award. On application by or on behalf of an employee who suffers a reduction in take-home pay as a result of the making of this award or the operation of any transitional arrangements, Fair Work Australia may make any order it considers appropriate to remedy the situation.

2.5              Fair Work Australia may review the transitional arrangements in this award and make a determination varying the award.

2.6              Fair Work Australia may review the transitional arrangements:

(a)              on its own initiative; or

(b)              on application by an employer, employee, organisation or outworker entity covered by the modern award; or

(c)              on application by an organisation that is entitled to represent the industrial interests of one or more employers or employees that are covered by the modern award; or

(d)              in relation to outworker arrangements, on application by an organisation that is entitled to represent the industrial interests of one or more outworkers to whom the arrangements relate.

3.              Definitions and interpretation

3.1              In this award, unless the contrary intention appears:

Act means the Fair Work Act 2009 (Cth)

at sea means being outside the harbour limits of a port, on location or the time between entering and leaving a port on the same day

award-based transitional instrument has the meaning in the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth)

day means from 12 midnight to the following 12 midnight.

employee means a national system employee as defined in sections 13 and 30C of the Act

employer means a national system employer as defined in sections 14 and 30D of the Act

enterprise award-based instrument has the meaning in the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth)

floating production facility is a floating vessel usually engaged at sea, whether propelled or non‑propelled, and which may be disconnectable or permanently fixed to a mooring riser and which is used to recover, receive, process, store and despatch hydrocarbons to a shuttle tanker

home port means a port at which the employee was engaged or any other port mutually agreed

in port means within the time after arrival providing the vessel does not depart the same day

location means a place at sea where a floating production facility is usually attached to a mooring riser. It includes on location and means attending or standing by oil rigs, platforms, floating production facilities or other vessels engaged in or in association with offshore oil and gas operations whether the attending vessel is under way or at anchor or secured to another vessel or structure whether inside or outside the defined limits of a port. Where a vessel is a MODU, location means the area in which the MODU is to drill.

main port means one of the following: Brisbane, Cairns, Darwin, Fremantle, Hobart, Launceston, Melbourne, Newcastle, Port Adelaide, Port Kembla, Sydney, Townsville, Broome, Port Hedland, Dampier, Withnell Bay or Barry Beach.

maritime offshore oil and gas industry means the operation, utilisation, control, maintenance, repair, and service of vessels (as defined) in or in connection with offshore oil and gas operations

MODU means a Mobile Offshore Drilling Unit

NES means the National Employment Standards as contained in sections 59 to 131 of the Fair Work Act 2009 (Cth)

non-propelled vessel means a MODU which is provided with personnel in accordance with Marine Order 47 as recognised by the Australian Maritime Safety Authority

officer means a person engaged or employed by an employer in the classification or capacity of deck officer or marine engineer

port includes a bay, a river, a roadstead, a place and a harbour

rating means a person engaged or employed by an employer in the classification or capacity of Chief Integrated Rating, Integrated Rating, Marine Cook, Chief Steward/Caterer or Caterer

repatriation means the provision by the employer, at the employer'-s cost, of transport to and from the home port

seismic survey vessel means a vessel whose primary function is the collection of data utilising survey techniques

specialist vessel means a vessel, not otherwise defined by this clause, designed or required to undertake specific operations in the maritime offshore oil and gas industry e.g. specialist dive support vessel or specialist pipelaying vessel

standard rate means the minimum salary for Integrated Rating on support vessels - Division 1 in clause 13.1 divided by 52

stand-by/utility vessel means a vessel whose function is the provision of a safety and rescue service to offshore oil and gas installations

supply vessel means a vessel designed and equipped for its primary function of transporting cargo and supplies to and from rigs, platforms, offshore installations or other vessels engaged in or in association with offshore oil and gas operations

support vessel means a vessel designed and equipped to perform anchor handling tug support that is engaged in or in association with offshore oil and gas operations and provides all related services such as anchor handling, towage, carriage of cargo, underwater inspection, seabed clearance, remotely operated vehicle operations, pipe reel operations, etc.

Support vessel - Division 1 means a support vessel whose length is 64 metres or less

Support vessel - Division 2 means a support vessel whose length is more than 64 metres

swing cycle means a cycle made up of working and non-working days

tow means for an anchored MODU the time between the lifting of the last anchor and the setting of the first anchor and for a jack up MODU the time during which the MODU is clear of the seabed and not anchored

vessel means a propelled or non-propelled vessel that may, but is not limited to, be used in navigation, construction or drilling and includes a ship, barge, drilling vessel or rig, crane vessel, floating production facility, tug boat, support vessel, supply vessel, stand-by/emergency vessel, pipe laying vessel, diving support vessel, lighter or like vessels, or any other vessel used in offshore and gas operations

vessels engaged in operations in the north-west shelf coastal areas means tugs, and shallow draught vessels, such as landing craft, utility vessels and multifunction vessels operated by an employer in or in association with oil and gas operations in the north-west shelf coastal areas:

·              coastal areas and islands between North West Cape and Dampier Archipelago;

·              coastal areas and islands enclosed by latitudes 20° and 22° south, longitudes 114° and 117° east; and

·              coastal areas associated with Onslow and local oil and gas field developments (including Barrow, Thevenard, Airlie and Lowendal Islands)

3.2              Where this award refers to a condition of employment provided for in the NES, the NES definition applies.

4.              Coverage

4.1              This industry award covers employers throughout Australia who are engaged in the maritime offshore oil and gas industry and their employees in the classifications listed in clause 13 - Classifications and minimum wage rates, to the exclusion of any other modern award.

4.2              Exclusions

The award does not cover:

(a)              employees who are covered by a modern enterprise award, or an enterprise instrument (within the meaning of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth)), or employers in relation to those employees;

(b)              an employee excluded from award coverage by the Act;

(c)              employers covered by the following awards:

(i)              Coal Export Terminals Award 2010;

(ii)              Dredging Industry Award 2010;

(iii)              Manufacturing and Associated Industries and Occupations Award 2010;

(iv)              Marine Towage Award 2010;

(v)              Port Authorities Award 2010;

(vi)              Ports, Harbours and Enclosed Water Vessels Award 2010;

(vii)              Seagoing Industry Award 2010; or

(viii)              Stevedoring Industry Award 2010.

4.3              Where an employer is covered by more than one award, an employee of that employer is covered by the award classification which is most appropriate to the work performed by the employee and to the environment in which the employee normally performs the work.

NOTE: Where there is no classification for a particular employee in this award it is possible that the employer and that employee are covered by an award with occupational coverage.

5.              Access to the award and the National Employment Standards

The employer must ensure that copies of this award and the NES are available to all employees to whom they apply either on a noticeboard which is conveniently located at or near the workplace or through electronic means, whichever makes them more accessible.

6.              The National Employment Standards and this award

The NES and this award contain the minimum conditions of employment for employees covered by this award.

7.              Award flexibility

7.1              Notwithstanding any other provision of this award, an employer and an individual employee may agree to vary the application of certain terms of this award to meet the genuine individual needs of the employer and the individual employee. The terms the employer and the individual employee may agree to vary the application of are those concerning:

(a)              arrangements for when work is performed;

(b)              overtime rates;

(c)              penalty rates;

(d)              allowances; and

(e)              leave loading.

7.2              The employer and the individual employee must have genuinely made the agreement without coercion or duress.

7.3              The agreement between the employer and the individual employee must:

(a)              be confined to a variation in the application of one or more of the terms listed in clause 7.1; and

(b)              result in the employee being better off overall than the employee would have been if no individual flexibility agreement had been agreed to.

7.4              The agreement between the employer and the individual employee must also:

(a)              be in writing, name the parties to the agreement and be signed by the employer and the individual employee and, if the employee is under 18 years of age, the employee's parent or guardian;

(b)              state each term of this award that the employer and the individual employee have agreed to vary;

(c)              detail how the application of each term has been varied by agreement between the employer and the individual employee;

(d)              detail how the agreement results in the individual employee being better off overall in relation to the individual employee's terms and conditions of employment; and

(e)              state the date the agreement commences to operate.

7.5              The employer must give the individual employee a copy of the agreement and keep the agreement as a time and wages record.

7.6              Except as provided in clause 7.4(a) the agreement must not require the approval or consent of a person other than the employer and the individual employee.

7.7              An employer seeking to enter into an agreement must provide a written proposal to the employee. Where the employee's understanding of written English is limited the employer must take measures, including translation into an appropriate language, to ensure the employee understands the proposal.

7.8              The agreement may be terminated:

(a)              by the employer or the individual employee giving four weeks' notice of termination, in writing, to the other party and the agreement ceasing to operate at the end of the notice period; or

(b)              at any time, by written agreement between the employer and the individual employee.

7.9              The right to make an agreement pursuant to this clause is in addition to, and is not intended to otherwise affect, any provision for an agreement between an employer and an individual employee contained in any other term of this award.

Part 2 - Consultation and Dispute Resolution

8.              Consultation regarding major workplace change

8.1              Employer to notify

(a)              Where an employer has made a definite decision to introduce major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees, the employer must notify the employees who may be affected by the proposed changes and their representatives, if any.

(b)              Significant effects include termination of employment; major changes in the composition, operation or size of the employer's workforce or in the skills required; the elimination or diminution of job opportunities, promotion opportunities or job tenure; the alteration of hours of work; the need for retraining or transfer of employees to other work or locations; and the restructuring of jobs. Provided that where this award makes provision for alteration of any of these matters an alteration is deemed not to have significant effect.

8.2              Employer to discuss change

(a)              The employer must discuss with the employees affected and their representatives, if any, the introduction of the changes referred to in clause 8.1, the effects the changes are likely to have on employees and measures to avert or mitigate the adverse effects of such changes on employees and must give prompt consideration to matters raised by the employees and/or their representatives in relation to the changes.

(b)              The discussions must commence as early as practicable after a definite decision has been made by the employer to make the changes referred to in clause 8.1.

(c)              For the purposes of such discussion, the employer must provide in writing to the employees concerned and their representatives, if any, all relevant information about the changes including the nature of the changes proposed, the expected effects of the changes on employees and any other matters likely to affect employees provided that no employer is required to disclose confidential information the disclosure of which would be contrary to the employer's interests.

9.              Dispute resolution

9.1              In the event of a dispute about a matter under this award, or a dispute in relation to the NES, in the first instance the parties must attempt to resolve the matter at the workplace by discussions between the employee or employees concerned and the relevant supervisor. If such discussions do not resolve the dispute, the parties will endeavour to resolve the dispute in a timely manner by discussions between the employee or employees concerned and more senior levels of management as appropriate.

9.2              If a dispute about a matter arising under this award or a dispute in relation to the NES is unable to be resolved at the workplace, and all appropriate steps under clause 9.1 have been taken, a party to the dispute may refer the dispute to Fair Work Australia.

9.3              The parties may agree on the process to be utilised by Fair Work Australia including mediation, conciliation and consent arbitration.

9.4              Where the matter in dispute remains unresolved, Fair Work Australia may exercise any method of dispute resolution permitted by the Act that it considers appropriate to ensure the settlement of the dispute.

9.5              An employer or employee may appoint another person, organisation or association to accompany and/or represent them for the purposes of this clause.

9.6              While the dispute resolution procedure is being conducted, work must continue in accordance with this award and the Act. Subject to applicable occupational health and safety legislation, an employee must not unreasonably fail to comply with a direction by the employer to perform work, whether at the same or another workplace, that is safe and appropriate for the employee to perform.

Part 3 - Types of Employment and Termination of Employment

10.              Types of employment

10.1              General

(a)              Employees under this award will be employed in one of the following categories:

(i)              full-time employees; or

(ii)              relief employees.

(b)              At the time of engagement an employer will inform each employee of the terms of their engagement and in particular whether they are to be full-time or relief employees.

10.2              Full-time employment

A full-time employee is an employee who is engaged to work an average of 38 ordinary hours per week plus reasonable additional hours.

10.3              Relief employment

A relief employee is an employee who:

(a)              is engaged to cover one-off periods of relief; or

(b)              is engaged to work on a project with a finite life; and

(c)              receives, on a pro rata basis, equivalent pay and conditions to those of full-time employees.

11.              Termination of employment

11.1              Notice of termination is provided for in the NES.

11.2              Notice of termination by an employee

The notice of termination required to be given by an employee is the same as that required of an employer except that there is no requirement on the employee to give additional notice based on the age of the employee concerned. If an employee fails to give the required notice the employer may withhold from any monies due to the employee on termination under this award or the NES, an amount not exceeding the amount the employee would have been paid under this award in respect of the period of notice required by this clause less any period of notice actually given by the employee.

12.              Redundancy

12.1              Redundancy pay is provided for in the NES.

12.2              Transfer to lower paid duties

Where an employee is transferred to lower paid duties by reason of redundancy, the same period of notice must be given as the employee would have been entitled to if the employment had been terminated and the employer may, at the employer's option, make payment instead of an amount equal to the difference between the former ordinary time rate of pay and the ordinary time rate of pay for the number of weeks of notice still owing.

12.3              Employee leaving during notice period

An employee given notice of termination in circumstances of redundancy may terminate their employment during the period of notice. The employee is entitled to receive the benefits and payments they would have received under this clause had they remained in employment until the expiry of the notice, but is not entitled to payment instead of notice.

Part 4 - Minimum Wages and Related Matters

13.              Classifications and minimum wage rates

13.1              An employee under this award, except as otherwise stated, will be paid at the rate of the aggregate annual salary prescribed in accordance with this clause appropriate to that employee's classification.

(a)              Facilities

(b)              Support vessels

(c)              Supply vessels

(d)              Stand-by/utility vessels

(e)              Self-propelled drilling vessels and thruster assisted vessel

(f)              Seismic survey vessels

(g)              Non-propelled MODUs under tow

(h)              Vessels engaged in operations in the north-west shelf coastal areas

13.2              The training, qualifications, roles and responsibilities of the classification of employees included in the tables above are incorporated in Australian Marine Orders - Part 3, the Navigation Act 1912 (Cth) and other relevant State Flag requirements.

13.3              The annual salaries have been fixed on an aggregate basis such that they take into account all aspects and conditions of employment. The aggregate salaries are based on an even time roster of 12 hours per day over seven days of the week, travelling time and an allowance for miscellaneous functions. The aggregate salaries are based on:

(a)              all hours worked in excess of 7.6 hours per day are calculated on the basis of time and a half for the first two hours and double time thereafter;

(b)              Saturday work at time and a half for the first two hours and double time thereafter;

(c)              Sunday work at double time;

(d)              public holidays at time and a half which is applied to five public holidays given the even time roster; and

(e)              63.38 equivalent ordinary hours pay per week.

14.              Allowances

14.1              Meal and accommodation allowance

(a)              If an employee is required by the employer to take a meal or meals ashore, the employee will be reimbursed for meal costs on the following basis:

Provided that if the above allowances do not cover the receipted cost of meals in the accommodation provided by the employer then the employer will meet the reasonable cost of the employee's meal. Alcohol will not be included.

(b)              Employees who are required to live ashore away from their home port may elect to provide their own accommodation in which event they will be reimbursed an allowance of $172.17 per day made up as follows:

(c)              Foreign port conditions:

(i)              two clear rest and recreation days will be allowed at the foreign port of call where a vessel is delivered overseas;

(ii)              the employer will reimburse the employee the cost of reasonable accommodation at the foreign port including bed, breakfast and laundry;

(iii)              the employer will pay the employee a victualling allowance of $114.48 per rest and recreation day; and

(iv)              an employee's leave balance will remain unaffected by rest and recreation days.

(d)              This clause will not apply where the employer provides meals and accommodation.

14.2              Travel expenses

(a)              Unless provided by the employer, the employer will reimburse the employee the cost of repatriating to and from the employee's home port for the purpose of taking leave and to the employee's home port upon termination of their employment. Where an employee terminates their employment before completion of their first on duty cycle, the employee will be responsible for their own repatriation.

(b)              An employee must be reimbursed for one taxi fare to the airport from their home and vice versa for the purposes of travelling to or from the vessel, upon production of receipt, up to a maximum of $43.63 per trip.

(c)              Where an employee has to wait for four hours or more for a connecting flight whilst travelling between the vessel and their home port the employer will provide or reimburse the employee the cost of hotel accommodation where available.

(d)              In the event that the employer does not provide air travel the employee will be reimbursed the cost of economy class airfares.

(e)              Any additional travelling expenses reasonably incurred will be reimbursed.

14.3              Industrial and protective clothing

An employee will be reimbursed for one third of the cost of designated protective and industrial clothing. Unless provided by the employer, the employee will be reimbursed the cost of two pairs of high visibility overalls per year, oil skins, sou'westers and sea boots.

14.4              Vessels wrecked or stranded

(a)              If a vessel in the course of a voyage becomes wrecked or stranded and an employee is called upon for special efforts while the vessel is still wrecked or stranded, the employee will for the time during which the employee so assists be paid at the rate of 2.94% of the standard rate per hour in addition to any other entitlement under this award.

(b)              If under such conditions an employee sustains damage to or loses their equipment or personal effects, the employer will reimburse the employee for such loss, but the amount of the reimbursement will not exceed the sum of $3539.90.

14.5              Damage to personal effects

Reimbursement to the extent of the damage sustained will be made by an employer to an employee in cases where an employee substantiates that in the course of work clothing or spectacles have been damaged or destroyed. Provided that this will not apply when an employee is entitled to workers compensation in respect of the damage.

14.6              Reimbursement of expenses

(a)              The employer will reimburse an employee any expenses reasonably incurred by the employee in the performance of their duties and on behalf of the employer.

(b)              The entitlement under this clause will extend to:

(i)              expenses associated with enquiries as to casualties or as to the conduct of employees and to proceedings for any alleged breach of any maritime or port or other regulations; and

(ii)              reimbursement of reasonable legal costs incurred or fines imposed by a competent tribunal under any applicable environmental legislation. Provided that the expenses incurred were not due to, or arise from, the employee's personal default or misconduct.

(c)              In order to claim a reimbursement under this clause, an employee will produce evidence to the reasonable satisfaction of the employer that the expenditure claimed was properly incurred by the employee.

14.7              Study allowance

(a)              Eligible employees

This allowance will apply to:

(i)              an employee Deck Officer who goes ashore to study and sit for an approved course of study qualifying such employee as a First Mate or Master of a ship;

(ii)              an employee Marine Engineer, Marine Electrician or Electrical Engineer, who goes ashore to study and sit for an approved course of study of Marine Engineering; and

(iii)              an employee Integrated Rating, who goes ashore to study and sit for an approved course of study to qualify such an employee as a Deck Officer or Marine Engineer.

(b)              An approved course of study is a Certificate of Competency, including an Endorsement, as prescribed by the Navigation Act 1912 (Cth) or regulations made thereunder, conducted by the Australian Maritime College or an approved technical institution or academy.

(c)              Conditions for accessing entitlement

The entitlements prescribed in clause 14.7(d) will only be payable by the employer if the following conditions are met:

(i)              an application in writing has been made by the employee and has been approved in writing by the employer;

(ii)              the employee has been in the employment of the employer for the 12 months prior to commencing the period of study;

(iii)              if the employer so desires, the employee will enter into a written undertaking that the employee will remain in its employment for a period of at least 12 months after sitting for the certificate in question;

(iv)              the entitlement will be confined to the first attempt to obtain the certificate in question; and

(v)              the employee provides the employer with reasonable proof of satisfactory attendance at the course of study and examination.

(d)              Entitlement

(i)              For approved study outside period of accrued leave - 75% of the eligible employee's salary or aggregate wages for the authorised period of study.

(ii)              For approved study during a period of accrued leave - a period of additional leave (immediately following the sitting for each certificate), equal to three quarters of the authorised period of study.

(iii)              An employer and an employee may agree to grant the additional leave under clause 14.7(d)(ii) as payment instead of leave.

(iv)              Where an application by an employee to undertake an approved course of study has been approved by the employer and the employee is subsequently retrenched, the employee will be entitled to payment in accordance with clause 14.7(d)(i). For these purposes, the employee's salary rate will be that rate applicable at the date of termination.

(e)              Living away from home allowance

When it is necessary for an employee to take up temporary residence away from their home port to undertake the approved study, the employee will be entitled to the following living away from home allowance during the authorised period of study:

(i)              $100.05 per week; or

(ii)              $141.05 per week (if the employee has a spouse and/or dependent children).

(f)              Authorised period of study

The authorised period of study for eligible employees under this clause will consist of:

(i)              the period of their attendance at the course of study for each such certificate;

(ii)              the prescribed examination times; and

(iii)              vacation times or holidays of not more than seven consecutive days (including Saturdays, Sundays and public holidays).

14.8              Medicals and passport

(a)              An employee who undergoes a medical examination by a medical inspector of seamen, at the requirement of the employer or pursuant to requirements under the Navigation Act 1912 (Cth) and relevant Marine Orders, will be reimbursed for the cost of the prescribed fees by the employer.

(b)              An employee who is required by the employer to have and maintain a valid passport, any necessary visas and necessary vaccinations will be reimbursed by the employer for all reasonable charges, fees and expenses incurred by the employee in this respect.

14.9              Allowances specific to vessels other than floating production facilities

(a)              Shared accommodation allowance

Where a crew member is required to share a cabin and is not already in receipt of any monetary consideration, they will be entitled to an additional allowance of 4.19% of the standard rate per day on each day they are so required to share accommodation.

(b)              Vessels temporarily engaged in carriage and handling of cargo allowance

Where a stand-by vessel is required to handle and carry cargo to or from an offshore installation an additional allowance of 5.57% of the standard rate per day will be payable to all crew members in full compensation of all additional duties.

(c)              Hard-lying allowance

An allowance of 5.24% of the standard rate per day will be payable to crew members accommodated on board in a two berth cabin and an allowance of 8.39% of the standard rate per day will be payable to crew members accommodated on board in a four berth cabin.

(d)              These allowances cover all circumstances associated with living on board a self-propelled drilling vessel.

14.10              Allowances specific to floating production facilities

(a)              Communication allowance

An allowance of 0.5% of the standard rate per completed fortnight will be paid to all employees to facilitate communication between the employer and employee.

(b)              Keep allowance

The employer will accommodate and keep the employee upon the facility at the employer's cost, or reimburse the employee for expenses incurred on the facility.

(c)              Personal and accident insurance allowance

Except where it is provided, the employer must reimburse the employee for a death and personal accident insurance cover of $109 218 for each employee's employment. Subject to the terms and exclusions of the policy or policies the cover provided will be based on the following:

(i)              the schedule of compensation will contain provision for the following payments:

·              in the case of temporary total disablement - an amount equivalent to an employee's ordinary award salary; or

·              in the case of temporary partial disablement - an amount of payment equivalent to an employee's ordinary award salary or an amount equivalent to 0.25% of the cover, whichever is the lesser amount,

provided that payments made pursuant to the schedule of compensation must not exceed 100 weeks.

(ii)              geographical limits - for accidents to be world-wide;

(iii)              age coverage - 16 to 64 years;

(iv)              exemptions - charter aircraft, helicopters and motorcycles not to be exempt; and

(v)              maximum liability - policies to have a liability sufficient to cover all lives involved in any one accident.

(d)              Personal illness insurance allowance

Except where it is provided, the employer will reimburse the employee for insurance against loss of salary where an employee is unable to commence a duty period due to an illness, and where that illness does not attract any benefits pursuant to sections 123 to 134 of the Navigation Act 1912 (Cth). Subject to the policy or policies purchased, the insurance will be based on the following conditions:

(i)              the insurance will commence from the time that an employee is unable to commence a duty period because of illness;

(ii)              during a period covered by this insurance an employee will neither accrue nor use leave;

(iii)              over the period of the insurance the employee will receive 65% of their normal award salary and loading if applicable;

(iv)              the insurance will not apply unless the employee is unfit for duty for more than seven on duty days from the commencement of the duty period;

(v)              in relation to any one illness the insurance will cease three calendar months from the commencement date or when the employee is certified as fit to resume duty by a qualified medical practitioner, whichever is the sooner; and.

(vi)              no medical expenses are payable under this insurance.

14.11              Adjustment of expense related allowances

At the time of any adjustment to the standard rate, each expense related allowance will be increased by the relevant adjustment factor. The relevant adjustment factor for this purpose is the percentage movement in the applicable index figure most recently published by the Australian Bureau of Statistics since the allowance was last adjusted.

The applicable index figure is the index figure published by the Australian Bureau of Statistics for the Eight Capitals Consumer Price Index (Cat No. 6401.0), as follows:

15.              Payment of wages

15.1              The employer will pay the employee's wages, penalties and allowances at a frequency of not longer than monthly by electronic funds transfer into the employee's bank (or other recognised financial institution) nominated by the employee.

15.2              An employer may deduct from any amount required to be paid to an employee under this clause the amount of any overpayment of wages or allowances.

15.3              Salaries will be calculated in the following way:

(a)              the monthly rate - by dividing the annual rate by 12;

(b)              the fortnightly rate - by dividing the annual rate by 26; and

(c)              the daily rate for fortnightly paid employees - by dividing the fortnightly rate by 14.

16.              National training wage

[Sched A renumbered as Sched B by PR991595]

See Schedule B

Part 5 - Hours of Work and Related Matters

17.              Hours of work

This clause provides industry specific detail and supplements the NES which deals with maximum weekly hours.

17.1              Ordinary hours of work

The ordinary hours of work will be eight hours per day Monday to Sunday, subject to the employer's right to extend the employee's ordinary hours of duty to 12 hours per day.

17.2              For the purposes of the NES an employee's weekly hours may be averaged over a period of 52 weeks.

17.3              Maximum working hours

In the case of rig shift, major machinery breakdown or in the case of an emergency employees may be required to work beyond 12 hours provided:

(a)              an employee must not be required to be continuously on active duty for more than 18 hours;

(b)              where an employee has been continuously on active duty for 18 hours they must not be required for further duty until they have had for the purpose of rest, a period of 10 consecutive hours off duty inclusive of meal breaks; and

(c)              continuous duty for the purpose of this clause is not broken by meal times or breaks of not more than four hours which include a meal break.

17.4              Notwithstanding any other provision of this award, employees who go to sea may be engaged to work on a swing cycle.

17.5              An employee is entitled to an unpaid meal break of not less than 30 minutes for each meal. Employees may be required to curtail their meal breaks where operational requirements of the vessel dictate.

17.6              Breaks will be scheduled by the Master based upon operational requirements so as to ensure continuity of operations. The employer will not require an employee to work more than six hours before the first meal is taken or between subsequent meal breaks, if any.

Part 6 - Leave and Public Holidays

18.              Leave factor

18.1              Leave factor and entitlement to leave

(a)              Subject to clause 18.2(c) for each day of duty on a vessel or a day during which the employee is necessarily involved in travelling to or from a vessel or place of work as required by the employer, an employee will accrue an entitlement to 1.153 of a day's leave without loss of pay.

(i)              The on duty period commences the day the employee joins the vessel; and

(ii)              the off duty period commences the day the employee leaves the vessel.

(b)              The extent to which the leave granted is more or less than that actually due will be debited or credited to the employee as less or additional leave.

18.2              Calculation of leave entitlement

(a)              The leave entitlement in clause 18.1 gives effect to, amongst other things:

(i)              leave with pay for weekends and public holidays worked;

(ii)              annual leave with pay of five weeks per year;

(iii)              personal/carer's leave;

(iv)              compassionate leave; and

(v)              time spent travelling in off duty time.

(b)              Where in connection with a crew change an employee spends more than one off duty day travelling to or from the vessel, the employee will accrue a day off for each additional day or part thereof spent.

(c)              In acknowledgement that the swing off day is an off duty day under the provisions of this clause and that an employee may be required to perform duties for all or part of the day, the employee will be entitled to an additional payment of one day's pay at the employee's normal rate of pay as full compensation for any work performed on each such crew change day.

(d)              The maximum time off an employee may accrue under this clause is 105 days. Unless agreement has been reached between the employee and employer, an employee will be required to take time off to ensure that the maximum of 105 days is not exceeded. Provided that where an employee who is scheduled on the basis of four weeks on, four weeks off, the maximum accrual will be 84 days.

18.3              Taking of leave

(a)              Any extended period of time off (i.e. outside of the normal swing) is to be taken at a mutually agreed time, having regard to the operational necessity of ensuring that only part of the permanent crew members in each department on the vessel take such time off at any one time, to ensure the continued operational efficiency of the vessel.

(b)              When proceeding on an extended period of time off, it will be the responsibility of the employee to ensure that they have sufficient entitlements due to enable them to draw continuous pay up to the day of the regular crew change when they are due to rejoin the vessel.

(c)              The extent to which time off granted is more or less than that due will be debited or credited to the employee as less or additional time off to be granted; provided that the employee may not be required to take more than seven days of leave in advance.

18.4              Payment of leave on termination of employment

Upon termination of employment, an employee's leave entitlement under this clause will be paid at the salary rate for the last position in which the employee served.

19.              Personal/carer's leave and compassionate leave

19.1              Clause 18.1 of this award gives full effect to the NES entitlements to personal/carer's leave and compassionate leave.

19.2              Arrangements for taking of sick leave will be governed by the Navigation Act 1912 (Cth).

19.3              Upon request, in the event of serious illness or death of a member of the employee's immediate family, the employer will repatriate the employee to the employee's home port as soon as reasonably practicable. The employer will endeavour to fill the resulting vacancy as promptly as possible.

20.              Community service leave

Community service leave is provided for in the NES.

21.              Public holidays

Clause 18.1 of this award gives full effect to the NES entitlements to public holidays.

22.              Annual leave

Clause 18.1 of this award gives full effect to the NES entitlements to annual leave.

Schedule A - Transitional Provisions

[Sched A inserted by PR991595]

A.1              General

A.1.1              The provisions of this schedule deal with minimum obligations only.

A.1.2              The provisions of this schedule are to be applied:

(a)              when there is a difference, in money or percentage terms, between a provision in a relevant transitional minimum wage instrument (including the transitional default casual loading) or award-based transitional instrument on the one hand and an equivalent provision in this award on the other;

(b)              when a loading or penalty in a relevant transitional minimum wage instrument or award-based transitional instrument has no equivalent provision in this award;

(c)              when a loading or penalty in this award has no equivalent provision in a relevant transitional minimum wage instrument or award-based transitional instrument; or

(d)              when there is a loading or penalty in this award but there is no relevant transitional minimum wage instrument or award-based transitional instrument.

A.2              Minimum wages - existing minimum wage lower

A.2.1              The following transitional arrangements apply to an employer which, immediately prior to 1 January 2010:

(a)              was obliged,

(b)              but for the operation of an agreement-based transitional instrument or an enterprise agreement would have been obliged, or

(c)              if it had been an employer in the industry or of the occupations covered by this award would have been obliged

by a transitional minimum wage instrument and/or an award-based transitional instrument to pay a minimum wage lower than that in this award for any classification of employee.

A.2.2              In this clause minimum wage includes:

(a)              a minimum wage for a junior employee, an employee to whom training arrangements apply and an employee with a disability;

(b)              a piecework rate; and

(c)              any applicable industry allowance.

A.2.3              Prior to the first full pay period on or after 1 July 2010 the employer must pay no less than the minimum wage in the relevant transitional minimum wage instrument and/or award-based transitional instrument for the classification concerned.

A.2.4              The difference between the minimum wage for the classification in this award and the minimum wage in clause A.2.3 is referred to as the transitional amount.

A.2.5              From the following dates the employer must pay no less than the minimum wage for the classification in this award minus the specified proportion of the transitional amount:

A.2.6              The employer must apply any increase in minimum wages in this award resulting from an annual wage review.

A.2.7              These provisions cease to operate from the beginning of the first full pay period on or after 1 July 2014.

A.3              Minimum wages - existing minimum wage higher

A.3.1              The following transitional arrangements apply to an employer which, immediately prior to 1 January 2010:

(a)              was obliged,

(b)              but for the operation of an agreement-based transitional instrument or an enterprise agreement would have been obliged, or

(c)              if it had been an employer in the industry or of the occupations covered by this award would have been obliged

by a transitional minimum wage instrument and/or an award-based transitional instrument to pay a minimum wage higher than that in this award for any classification of employee.

A.3.2              In this clause minimum wage includes:

(a)              a minimum wage for a junior employee, an employee to whom training arrangements apply and an employee with a disability;

(b)              a piecework rate; and

(c)              any applicable industry allowance.

A.3.3              Prior to the first full pay period on or after 1 July 2010 the employer must pay no less than the minimum wage in the relevant transitional minimum wage instrument and/or award-based transitional instrument for the classification concerned.

A.3.4              The difference between the minimum wage for the classification in this award and the minimum wage in clause A.3.3 is referred to as the transitional amount.

A.3.5              From the following dates the employer must pay no less than the minimum wage for the classification in this award plus the specified proportion of the transitional amount:

A.3.6              The employer must apply any increase in minimum wages in this award resulting from an annual wage review. If the transitional amount is equal to or less than any increase in minimum wages resulting from the 2010 annual wage review the transitional amount is to be set off against the increase and the other provisions of this clause will not apply.

A.3.7              These provisions cease to operate from the beginning of the first full pay period on or after 1 July 2014.

A.4              Loadings and penalty rates

For the purposes of this schedule loading or penalty means a:

·              casual or part-time loading;

·              Saturday, Sunday, public holiday, evening or other penalty;

·              shift allowance/penalty.

A.5              Loadings and penalty rates - existing loading or penalty rate lower

A.5.1              The following transitional arrangements apply to an employer which, immediately prior to 1 January 2010:

(a)              was obliged,

(b)              but for the operation of an agreement-based transitional instrument or an enterprise agreement would have been obliged, or

(c)              if it had been an employer in the industry or of the occupations covered by this award would have been obliged

by the terms of a transitional minimum wage instrument or an award-based transitional instrument to pay a particular loading or penalty at a lower rate than the equivalent loading or penalty in this award for any classification of employee.

A.5.2              Prior to the first full pay period on or after 1 July 2010 the employer must pay no less than the loading or penalty in the relevant transitional minimum wage instrument or award-based transitional instrument for the classification concerned.

A.5.3              The difference between the loading or penalty in this award and the rate in clause A.5.2 is referred to as the transitional percentage.

A.5.4              From the following dates the employer must pay no less than the loading or penalty in this award minus the specified proportion of the transitional percentage:

A.5.5              These provisions cease to operate from the beginning of the first full pay period on or after 1 July 2014.

A.6              Loadings and penalty rates - existing loading or penalty rate higher

A.6.1              The following transitional arrangements apply to an employer which, immediately prior to 1 January 2010:

(a)              was obliged,

(b)              but for the operation of an agreement-based transitional instrument or an enterprise agreement would have been obliged, or

(c)              if it had been an employer in the industry or of the occupations covered by this award would have been obliged

by the terms of a transitional minimum wage instrument or an award-based transitional instrument to pay a particular loading or penalty at a higher rate than the equivalent loading or penalty in this award, or to pay a particular loading or penalty and there is no equivalent loading or penalty in this award, for any classification of employee.

A.6.2              Prior to the first full pay period on or after 1 July 2010 the employer must pay no less than the loading or penalty in the relevant transitional minimum wage instrument or award-based transitional instrument.

A.6.3              The difference between the loading or penalty in this award and the rate in clause A.6.2 is referred to as the transitional percentage. Where there is no equivalent loading or penalty in this award, the transitional percentage is the rate in A.6.2.

A.6.4              From the following dates the employer must pay no less than the loading or penalty in this award plus the specified proportion of the transitional percentage:

A.6.5              These provisions cease to operate from the beginning of the first full pay period on or after 1 July 2014.

A.7              Loadings and penalty rates - no existing loading or penalty rate

A.7.1              The following transitional arrangements apply to an employer not covered by clause A.5 or A.6 in relation to a particular loading or penalty in this award.

A.7.2              Prior to the first full pay period on or after 1 July 2010 the employer need not pay the loading or penalty in this award.

A.7.3              From the following dates the employer must pay no less than the following percentage of the loading or penalty in this award:

A.7.4              These provisions cease to operate from the beginning of the first full pay period on or after 1 July 2014.

Schedule B - National Training Wage

[Sched A renumbered as Sched B by PR991595]