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2 AFF¡DAVIT OF DAVID LANSBURY l, David Lansbury, of 6 Townson Place, Leeming, Western Australia, lndustrial Relations Consultant, affirm as follows: t. I am77 years of age On 22 September 2Ot4,l was served with a summons to appear before the Royal Commission into Trade Union Governance and Corruption at a hearing on 29 September 2OL4. I have been advised by my treating doctor that, due to my medical conditions, I should not travel to Sydney for the hearing. I have provided a certificate to this effect to the Commission. 3. I have prepared this affidavit to be tendered at the hearing Background I have over 50 years of experience in the onshore and offshore construction industry in project planning, administrative and employee/industrial relations support roles including: (a) Human Resources; (b) lndustrial Relations; (c) Tender Preparation; and (d) Project Execution. ln 2005 I retired from my position as lndustrial Relations Manager with Clough Engineering Limited a position I held for over L7 years. ljoined Strategic Human Resources (SHR) as an lndustrial Relations Consultant in late 2005. 4 5 6. 7. I hold an accounting qualification w

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2

AFF¡DAVIT OF DAVID LANSBURY

l, David Lansbury, of 6 Townson Place, Leeming, Western Australia, lndustrial Relations

Consultant, affirm as follows:

t. I am77 years of age

On 22 September 2Ot4,l was served with a summons to appear before the Royal

Commission into Trade Union Governance and Corruption at a hearing on 29

September 2OL4. I have been advised by my treating doctor that, due to my

medical conditions, I should not travel to Sydney for the hearing. I have provided

a certificate to this effect to the Commission.

3. I have prepared this affidavit to be tendered at the hearing

Background

I have over 50 years of experience in the onshore and offshore construction

industry in project planning, administrative and employee/industrial relations

support roles including:

(a) Human Resources;

(b) lndustrial Relations;

(c) Tender Preparation; and

(d) Project Execution.

ln 2005 I retired from my position as lndustrial Relations Manager with Clough

Engineering Limited a position I held for over L7 years.

ljoined Strategic Human Resources (SHR) as an lndustrial Relations Consultant in

late 2005.

4

5

6.

7. I hold an accounting qualification

w

2

8 During my employment with SHR I have had contact with a variety of union

officials at both State and Federal levels including the Maritime Workers' Union

(MUA) as part of my role as an advisor to clients on industrial relations.

Blacktip Project

During my employment with SHR I was assigned to provide Saipem with

industrial relations advice on the Blacktip project located offshore in the

Bonaparte Basin located in the northwest of Western Australia.

L0. The role included:

1.1,.

(a) Provision of industrial relations advice;

(b) Support for industrial relations management requirements;

(c) lnformation on legislative obligations related to employment;

(d) Compliance with employment related legislation;

(e) lnterpretations of existing agreement obligations of the manning agentscovering both the marine and construction labour;

(f) ldentification of industrial relations risks and planning mitigationstrategies;

(e) Drafting of various lR documentation, including project briefings to theapplicable unions; memorandums of understanding; and

(h) Advising on the industry lR practice and precedent and the impact ofoperational requirements in the face of those practices and precedents.

The role was one of providing the best possible industrial relations advice, based

on industry practice at the time. Despite the advice provided to the Client at the

time, it was always the decision of the client as to whether they accepted,

adopted or implemented the advice.

12 Saipem representatives whom I dealt with in undertaking this role included the

following:

Antoine Legrand - HR/lR Manager; and

Fabio Di Giorgi- Project Manager.

9

D

(a)

Witness:

aJ

13.

1,4

15

16

The primary contact was Antoine Legrand. Exhibit DL-l is a copy of an email

from Antoine Legrand, dated L6 July 2008, in which he provides some

background information on the project. lt was around this time that I first

became involved in the project.

I am unaware of the commercial relationship between Saipem and its client (ENl)

but the clear impression that I got was that ENI made many of the decisions that

involved a fiscal effect on the project.

ln relation to the Blacktip Project, there were in-term maritime agreements in

place covering the manning agent crews (Offshore Marine Services). There were

few lR issues relating to this project as most were resolved prior to the vessel

commencing on this project. To the best of my recollection the main issues that

arose were

lssue How Resolved

Accommodation

L. Air conditioning

2. Bed bugs

1.. Hard-lying in accordance with OMS agreement

2. Fumigation & Cleaning; new bedding

Cyclone Billy lncident Cyclone procedure developed and agreed with the

unions whilst crews retained on standby

Foreign Crewed tugs METL contribution

During my involvement in the project I attended a number of meetings where the

issue of foreign crewed tugs and contribution to METL were discussed. lt is my

practice to take file notes of meetings that I attend. The following file notes,

which I prepared shortly after each meeting, are accurate records of the

meetings that I attended where this issue was raised:

Exhibit DL-2 is a copy of a file note I prepared in respect of the meetingbetween the MUA and Saipem/OMS that occurred on L5 August 2008;

(a)

Witness:

4

17

18

1_9

(b)

(b) Exhibit DL-3 is a copy of a file note lprepared in respect of the meeting

between the MUA local branch and Saipem/OMS that occurred on 25

August 2008;

(c) Exhibit DL-4 is a copy of a file note I prepared in respect of the meeting

with Saipem - ENI that occurred on 26 August 2008;

(d) Exhibit DL-5 is a copy of a file note I prepared in respect of a meeting withthe MUA local branch and Saipem/OMS that occurred on 28 August 2008;

and

(e) Exhibit DL-6 is a copy of the file note I prepared recording the minutes ofmeeting at the MUA Office in Fremantle on 1l- September 2008.

Save for the matters mentioned in paragraph L9, I was not requested to provide

any lR advice to Saipem pertaining to the contribution of funds to METL. Saipem

and ENI perceived an lR risk emanating from the MUA in relation to METL

contributions. Saipem and/or ENI may have obtained lR advice from other

sources in relation to this, but not from me or representatives of SHR. I was

aware of negotiations occurring between Saipem and the MUA in relation to

METL but lwas not involved in those negotiations. Whilst lhave sighted

documents that verify the contribution to METL, I have no knowledge of who

made the contributions - Saipem or ENl.

With regard to the benefits that may have arisen as a result of the METL

contribution, I can't say for certain, but the issue over the utilisation of foreign

crewed tugs to tow in the line pipe from South-East Asia was resolved.

The following documents record lR advice I gave to Saipem regarding thecontribution of funds to METL:

(a) Exhibit DL-8 is a copy of an email I sent to Antoine Legrand on 9November 2008 attaching a briefing note on METL.

Exhibit DL-7 is a copy of an email I sent to Fabio Di Giorgi on 9 October2008.

Depo W

5

Sworn by the deponent

at Perth

in Western Australia

on 26 September 20L4

Before me:

Sign of witnessName: Cu i lvtftoQualification: têàl t- ?R,ACTt l't o¡l.tEk

NHo HryS ftELD npßhcnlrx q c êßr, f_ t LATE

æ, lvÒ leA<S Òt< nÞßE

re de nt

Deponent: Witness

6

CERTI FICATE OF EXH IBITS

Bound and marked 'DL-l'-'DL-8' are the exhibits to the affidavit of David Lansburysworn 26 September 2014.

ss

Exhibit Description Page No.DL-1 Emailfrom Antoine Legrand on 16 July 2008 7

DL-2 File Note of meeting on 15 August 2008 2-3

DL-3 File Note of meeting on 25 August 2008 4-5

DL-4 File Note of meeting on 26 August 2008 6-7

DL-5 File Note of meeting on 28 August 2008 8-10

DL-6 File Note of meeting on LL September 2008 11-13

DL.7 Email chain between David Lansbury and Fabio DiGiorgi 14-76

Dr-8 Email from David Lansbury to Antoine Legrand L7-t8

ent Witness

tD¡-l-'NTP,597.500.0015

(,

li

Froml Legrand Antolne [mallto:Anbine.Legrand@salpem,enl,lt]Sent; Wednesday, 16 July 2008 8:09 PM

Tol Patter5on YvonneCcr Cameron Euan; Gualta Paolo; Dl Glorgl Fablo; 'Terry Adams'; Davld LansburySubjectr Feed back IR

Yvonne,

Quick updaté on the situation:

'l ) We have.had the lnspectlon of Castoro B / meetlngs on board wlth MUA offloials yesterday.Several clalms were ralsed (Malnly 16 % bonus, hardlylng allovance, contributlon to training fund.,.); we should be ableto flnallze a MOU for our ounent proJect next week during our next meetlng ln Perth,I'll send the complete list of clalms asap,

As you are already aware, our cllent ls ready to pay some of the claims to close the lssues, As we agreed, we clarlfledthat these engagemenb werq only taken for the current project but lt ls obvlous that thls creates, a precedent,To summarize situatlon on board, works are golng well but marltlme crew ls creatlng a lot of technlcal lssues; we hopethat reaching the agreement next week wlll Rush them out.

2) What is posltlve is that constructlon unions didn't want to get lnvolved ln thls, We'll meet them afterlhe meetlng wlthMUA next week to finallze the trainlng contrlbullon, We hope that thìs will close out the MOU arrd that they won't rålseaddltlonal lssues ralsed by the MUA

3) We have made'several attempts to contaot MUA & AMOU Natlonal offices to organlze a brieling. for end of July lnSydney; without answers so far.Anyway for the momênt, any meeting wlll for sure be polluted by the curent proJect tlll we close lhe above.

I would suggest we meet next week after meeting with MUA to update you & prepare brletîngs,

Best regardsAntoine

Antolne LegrandProject HFI/IR MatragerHRîiè;ip;; (Ë)cM - Austratian Eranch

Menzies House, Ground Floor, 640 Murray StreetWesb Perth WA 6005Tel; +61.(o) 894,290.15eMoblls : +61,(0) 4I7,927.479antolna,leg rand @salpe m,snl.lI

t'\

Thìs email mossage and any âttachñents âs well æ the information containedthercin ars confldential, Tlemessage and att¿chments may also contain privileged olient information and/or intelleotual propedy rightsinofuding copyright, If you atç notthe intended rocipient, âny use, rearling,printing, intorference with,reproduction, adaþtation, tránsmission, disclosure, dissemjnation, storing or otho¡uso tlr reliaqce isunauthorised and ptohibited. Eni SpÀ and its applicable afflllates havs taken reæonabl'e steps to ensure theacouraoy aud integrity of all its communioations but accopt no liability for materials or informationtransmitted, If you have receíved this email in enor please immediately advise the sender by retunr omail and.

delete the message from your system noti$ing info@oniaustralia,com,au

1

t D/, -&l

X'ile Note

This note reports the meeting helcl ín Sydnoy on 15h August 2008 between the

maritime unions and Saipem/ OMS.

Purpose

Brief the mæitime unions on tho upcoming Blacktþ Project and to introdu-co the role

ãf for"igo crewed tor)v h¡gs in ãetverile bægJs to-Frernantle and delivery of

equipment barges to and from Darwin'

Attendees:

MUAMUAMUÁ.AMOUSaipemOMSSHR

Briefine Presentation

The document achieved its purpose by bringing an initial reaction by highlightÌng the

need to useforeign cre,Ped spo[hifo tow tugs vessels'

Mick Doleman led the union's rejection to the issue of foreign crewed vessels'

saipem oxplained the current shortage of vessels in Australia and the teluctance of

uu*i"r op.rutors to tie their vessels up for shori term (three week) tow chæters'

Saþem table chedule showing the to

keJp foreign the site, minimìzing cn

tugË anaAus over the Plan has bee ng

to pass the bridlo offshoro,

Ilowever in pushing back on the union position, there was a grudging acceptance tythe unions that there may well be a short supply of spot hire vessols and Australian

clows.

project,

{MickDolemanIiu Bray

.

Dave CushionSteve GrovesAntoine LegrandIan Dol RossoDavidLansbury

{

2

Ian Bray made only few commonts, obviously keeping his comments for the local

briefing to be held on 25rh August 2008 in Flemantle.

Durìng these discussions it became evetr more apparent that official responses by the

MUA will be left to the'WA branch and Ckis Cain'

Final comments ftom the unions wete:

t They,ll challenge the availability of Australian spot hire tugs by

making their own enquíres

I An interesting comment made by Mick Doleman was that additional

training may be a solution for the foreign crew issuos

MOU

The Mou was tabled and discussed, The following commonts were made by the

MUAr

t with Cal Divels relating to the

åi:iÍïii"n'+ Ian marked the spot in regard to sonsub Rov operations stating that if

the rates aud a[Ñances were right there should not be any problems &confirmed the MUA will directly llaise with sonsub for nogotiations

I lan requested confirmation of the applicadon of the standby clause

contained in the MOUÖ Mick Doleman asked to change "Worþlace agreements" by

"Enterprise agteemonts" & corrected afew typo

t Mick asked confirmation that all vessels cunently planned to be

employed in the project will bo subject to PAB

r Mtck confirmetl that the unions had been contacted by Go offshore in

regard to the Micþ Enduranco

Notes

Note 1: No mention was made about hardlying allowances so far'

Note 2:DuringMontardiscussmessago to ENI without any commitrnent of the answef.

3

íf

'Þu -3'

File Note

Meeting in Fremantle on 25ù August 2008 in MUA offìces with MUA local branch &Saipem/OMS

Purposq

Brisf the state branch of the MUA on o introduco

the role of foreign crewed tow tugs in delivery of

equipment barges to and from Darwin.

E

\-

Attentlees

Chris CainIan BraYAntoineLegandIan Del RossoAlexParkDavitlLansbury

MUAMUA.SaipemoMsoMsSHR

Brlefins Docuxent

that has been made toments detaìled into our

The MUA Íesponse to the schedule was predictable given the responses provided by

the MUAin meetings held in Sydney earlier,

The rosponses can be summar{sed as follows:

I Yesssls are availablo and crew as well MUAmentioned 60people)

t No way that their membership will accept foreign crewecl tugs on ol

around the Projeot,

}TherewereAustraliansorpKorNZseamanavailabletocrowthevessels.

+IftherehadtobeBritoilTugsusedtlreAustralianorgwsand[-IKcrewswouldcrewthesotugs.Caìnatfirstsaidthatthevesselswouldhavetobe insPectedbut later backed

uP with the condition of the

ono of aPPrehonsion that rs

mastets't Theír immediate concem ls the foreign cfov/ tug bringing the empty

bæges to AúC faciliry "onto their pãtch"& that such situation could

cleate a massive issue.

It was then agreed that Saipem would again review the tabled spread document to see

it anytning ""* U" done äbout the forergn crewed tug going into the AMC yard,

4

I (l(.

t(.\

saipem also undertook to review the other foreign ctewod vessels, However it was

'*äu trtu' to the union tnuilt *ut going to ue ve{' ainicult to re-organise the foreign

crowed line pip'e shuttle hrgs'

again stated that they wìlt be claqring the .same

hard'

íevy applying to ín" Monta¡a koject' (Hardlying

allowance of $45/daY)'

the government & that an

into a letter that the MUAclalm,

Saipem undertook as well to revert to the union later in the week tegarding all points

mentioned above.

There may be a charLce to trade the lino pipe shuttle tugs for some sort of additionalÊ

Fi.. ftaining.

MoIl

There Were no íssues iaised in regatd to the MOU, other ttran the use of foroigrr

orewedtugs.

e.

i.-

5

(- )

(

t

l^.-

File Note

Meeting n HolidaY Inn - Perth,

Purposq

To provide BM with feedbaok on rtcent bdeÍngs huld *ttþ the Marìtime and

Con-struotion uniofls & reoeive frúhor inshucdons on ponding points,

Attentlees

Paolo Guaita-ENIEuan Carneron'ENIYvonne Patterson-ENIStoveWalton-BMTenyAdams-AMMAFabio Di Giorgi- Saipem

Madhusudanan* $aiPemGianmiohele Paoe - S aïpem

Antoine LegtaÌd- SaþenDavidLansbury- SHR

I

Vessol Snread

saipem vorbally reporred baok (As a follow up to file¡9tes alroady,prgvia¡,a tg$lJ; tli. meeting *ith thu MUÀ and the rationale and data undorpinning the Vessel

Sirread Documeut tabled at the meeting,

. As oxpe{ options\'

FàoiHtv

,...,.h&.$-ûçd th.e- meoting thatfiom their claim that Australians should orew these two tugs'

' Theto was fi¡rther discus

the unlons conceding

": #f*'.1crew issue with theSaþom also remindedwould change there posítion on Darwin'

The Saþom macle the followìng recornmendatïon:

t The foreign crew tug crurently in transit towinþ Bargo 1 to the AMCfaotlíty should b.e áiverted to allow an Australían orewed tug to

6

\i,

{

MOU

Saþem informed the meeting that the unions (li4æitime and Construotion) havoolaimed a hardlying allowance of $30/da¡ refloctlng payments by other cllent onprovious project, ENI approved in pdnoiple to pay this allowanoo on Blaoktþ. Writtenconfirmation will be requirecl,

Traininq

Saipem infonned tho meeting that tho MUA iutonded to lodge a olaim on ENI forhaining, ENI made ít very c1eæ that they don't want to nogotiato direotþ with theunions and that Saipom should undertake the negotiations on their behalf, Saipem

agreed.The $45/on duty day levy would apply to MUA members wolklng on the C8 and is,

according to the MUA, the same asihe levy applying to the Montara ProjeoVCoogee.

Saipem also infomed the meeting that the conshuotion unions would be olaiming tho' same training lovy as the MUA.

BNI stated thoy were ready to consìdor a training levy, However they wantecl the

MUA's acoeptance ofthe 'Datwin Hub" in exchange for the training levy

Saipem replied that they will in all probability teoeive a nogative tesponso from. tlto

Vffa e¡vãn that they already r".uive the $45lday lovy on Montata wlth no strings

attached,

ENI conflrmecl that the levy was as much as they æe willing to pay and that therç

should not be,any additional training paìd fot the Datwiu Hub, ENI also stated that-'-=66¡i;i1õsiTiönîãi"dítrerent ftom Cooeee in that they do not oporate auy FPSO's ln

Australia,

Conclusion

complote the voyage, The point where the bæge ivill be piclced was

disoussed and Saipem made it oloat they woultl prefor outside

Australian waters. Saipem undertook to provide EM r¡vith options todeal with the Balge i towtug,

t Barge 2 tug should also be crewedby Aushalians,

ENI, in closing the meoiing informed Saþern that thef wanted to meet plior to the

next meeting wittt the MUÀ to provide Saþorn with instructions on how they should

proceedinthe area of foreign crewedtugs andtraining'

q

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7

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Dl-,-S)

File Note

Meeting in Fremantle on 28th August 2008 in MUA offices v/ith MUA 1ocal branch &

Saipem/OMS

Purpose

To continue negotiationing issues raised by the MLIA relating to foreign crewed tugs,

hardþing and traíning , '

Attendees

MUAMUASaipemSIIRoMs

i Cbris Cainlan BrayAntoine LegrandDavid LansburyIan Del Rosso

(

Tugq

Discussions picfteil up where they had left off at the conclusion of the last meeting'

fn short the MUA remain stedfäst in their rejection of any foreign crewed vessels

entering Ausfralian waters for the Blacktip Project'

MUA also stated that they dld not as a rule accepted bridle transfers offshore'

t hire tugs the MUA again made itg AMC or Darwin and if this didsupplY chain and activitìes on the

Project site,

¡d; and OMS continued to push tho unavailability of tugs and unwillingness of

coripanies to release hrgs for shortperiods'

MUA continued to strongly disagree with the tug availability issue stating that provided

the necessary money is Paid'At the same time, tftr üùÁ accepted Saþem's contention that there wels no spot hire

hrgs available to suit the schedule.

At the conclusion of these discu

hansfers at see for the two urgent

but made it cleat that theY willassociated dotails well in advanco

are informedFor future barges, this would be subject to plopef compensation is paid into the training

fund (As explained below).

I

\

Hardlnns

saipem c claim for the Project was ageed at $30 per on

dutytlaythatthehædlyirrgwillremainat$30peÎon¿uty ¿ay no exha claims'

Trainine

MUA in reco levy amou1$ng to $45 per on.¿"!V juY

expandecl the mbärs working on the project including

other vessels, was rejected by Saipem'

According to their original calculation, amount is 1,2 Million; after immediate revised

calculation with Saipeå, ùUÀ rfaim comes down to 750'000 AUD based on the below:

$45/per on duty aay I ,¡; whole spread (ftrcluding other vessels, diving and ROV) *

duraiion of the project (Tentative 150 day$'

The MuA acknowledge the offet' of saipem of $4200,000 and the arguments for-such

ur*oot, the specificifi* "t ÈN titoution (No FPSO, unmanned platform, no future

relation with the MUA..,) but strongly disagee'

Saípem clarified that ûd or"r i* al"t inclusive and includes dispensation for using foreign

crewed tow tugs into Dæwin'

Trainine & Tugs

1.) If Saipem wanted additional money to the training fund,

.equallyirrg the ng down a foreign tug rather than an Australian

one @ayratQ

Singapore, differences of crew numbers and

aiPem'

3)Ifsaipemusesforeigntugswithfopígncrewandpass-thebrirlleoffshore,MUAwanted diÍference puù ti ftri;ing fund betr¡'een salaries of Australian and expats' ftom

sail-away to hand-ovJr.'Sõ;it.i;à they'Il come back to the unions on the global

amount of training,

Conclusion

The willingness to close the deal is certain, as well as MUA desíre to get anmunÌtíonsto

keep quiet their.memuers" Negotiations will certainly be between 200'000 AUD and the

É'\.

(

I

cunefit 1',830'000

T

Note

We didn't discuss figures during the meeting but here is a vory quick breakdown for EM

calculation:If 6 MUA * 15 transit days * 1'000 AUD difference = 90'000 AUD for each trip down to

AustraliaIf 6 pipelines barges + 2 cargobarges to Kwitrana + zMB to Darwin + 2 Catgo barge for

SPM= 12trþsTotal = 1'080'000 AUDThe baso of this number can certainly bo reduced (æss transit, less paymont difference)'

and the total number l" .àttuinfy iegotiable' but for suro, the idea is to exchango

uãàitio*f ftaining against not having Austaltan tugs delivering the material'

t

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10

( )L- (a

File Note

Meeting inFromantle on Ilth Septombel 2008 inMUA offi.ces Fremantle.

Purpose

To continue dÍscussíons relating to a proposed training levy and tho utilization of forelgncrewed Tow Tugs

Atfelulees,

\ûE

CluÌs CatnWillTraceyAntoine LegtandDavidLansbwy

MÜAMUÀ (Left,tho meeting following dlscussïons rogæding ROV)SaipemSIIR

(

ROV

was not resolved there would be problems on the Castoro 8,

Castoro t:Brdtojl6l,

Cain then raisod issues related to conditions on boat'd C8. The bed bugs cleaning havo

[tggered- anothsr issue: mould has beon found under the cabins berth' A supposed

rpããiuli*t fto* Dæwin immediately came on board (Actually a oåtpot cloaner) and sproad

out'.the"word-that-situation was corqpleteþ out of conttol with the possibllity of poison

and asbestos prosent íntlie mould.Crew made i[ clear they will qot sail away if this isn't solved & that tltis could take ages,

Cain was supporting ihir, Salp"m clarifie{ ttrat Coffey teshnioian vislt the day afrot

shouldfix thlngs,

Siäläe lnì¡l nîeàIiÈ (intüiila,y t|tt'¡ a real speclølìst fiom Coffiy went on board the 12tt',

cool tlown tlrc slluøtion and.'proposed. nnfor the cleønirlg agteedby tlrcWT and the

crew (Sltould b e c omplete d' around the

11

e crew refused to worlc since oystors

houts of disoussions OMS / SaiPem

went bask to worlc aftor provisions

plan agreed,

Trainlng analX'oreisn Crewcd Tûes

From the stæt of these úisoussions it became oleæ that Cain was angry about the holcl 'pl"

"f"r.g oot tttu naining levy and what he claimed was allowing foreìgn crewed vessels*on

tehalf of the Project without hìs lcnowledge of consent'

this by reminding him that Saipem had indeed informed the

d vaesåls w"ru goíng to arrive and that 8g1e6Ûrônts wete made

for the first two ones provirdedthat a finalagreement on tralning is found.

After a break the meeting resumed and in what could only be described as tense'

especially in regatd to tñe foreígn uewed ürgs 9n thgg way to âustralia' Ïhese

diicussioïs got q-uite lioated with C-ain clatmìng that he could not trust Saipem or ENI on

the trainíng ievy ancl that thoy were just spinntng ths MUA 4o1g *o t\t they could get

the foreigricrewed vessels worting, it tooic somõ dme to sottle tho meeting down and to

refocus o-n what need to be tlone to got the ftaíning question resolved,

Eventually the following understandings where reached:

f

I[.(

I under no clrcumstances will the MUA negotiate with Teny Adams or

anyone else than the people who have started the negotietions

0 There would be no-formula or calculation by written attached to the

TrainingLovy+ MÛA claimis for $1 millionI Passlng the bridle offshore ls

entedng DarwÍn - SalPem exPI

r To bePaid50% uPfiont and 50

+ MUÀ wlll proviåe a soft copy of letter explaining the structu'e of the

ftalning levy and othçr documontadon

t

' : äî'åiiJ*T:a Trainlng Soheme (See below)

caln made it olear that there will be no futthur concessions mads in Ïêgard to foreign

crewed tugs untìl the Training Levy is agreed'

The ROV issue temafuts outstand{ng,

12

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SideLetfer 4raft

TO WHOM IT MAY CONCERN

Over the past few weeks learli:rg up to tho mobilízation of the Biaclrtip Project Salpem

have beon tylng to source spot hire Ausnalian tugs wlthout success,

During this period Saipem havo met with the MUA on nunetous occasions to provide

them with details of the efforts made to source these vessels,

Ths situation has now become critlcal and to assíst Salpem and ENI to completo the

exchange for a contribution by BNI to the MUA Scheme,{.

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13

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Molan, Thomas

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From;Sent:To:Gc:Subject:

David Lansbury <Davld@shr-services,com'au>

Thursday, 9 Oðtober 2008 3:45 PM

DlGiorgi FabioLEGRAND Antoine; Colln Gibson

RE: Letter re marltime tralnlng

Fablo

Most of the documentation appears to be standard, However, in my view there is no way that industry will support a

training business managed by only MUA D-irectois iAãni iáå MUÁ training going anywhere untll there ls equal

company/employer representation on the Board,

Regards

DAVID LANSBURY I Senior consultant I strateglc Human Resources

M 0401995684 r Ot a Sgzl 0272 F 61 B I 321 An3 E dlansburv(oshr'servlces,com'au

I\DO Box 1128 West Perlh WA 6172

'ww.shr.com,au

st-tß$å#1tåËf+

tt

From: Di Giorgi Fabio [mailto:Fabio.DlGlorqi@saipem'eni'it]Sentr Thursday, g October 2008 12:00 PM

To: David LansburyCcr Legrand Antoine; Colin Gibson

Subject: RE: Letter re marltlme trainlng

Yes, ENi is reviewlng the documents as well and they are looking for sHR',s comments'

Thanks,Fablo

tromi Davld Lansbury lma ilto I David(oshr-services'com.a ulAMf' rnt: Thursdaç October 09, 2008 11:57

\ ,ò: DiGlorglFabloCc¡ LEGMND Antofne; Colin Gibson

Subject: RE: Letter re maritlme tralning

Fabio

ln my view the documeniation needs to be reviewed by a lawyer aotlng on behalf of Enl

Has Eni been given the chance to review the documents?

Regards

DAVIDLANSBURYISeniorConsultantIStrateglcHumanResourcesNt ó,lOtssSOe¿ f Ot O eaZj 0:272 F 01 I I ì21 0273 E [email protected],au

Po Box 1128 West Perth WA6172

wwushl com.au

1

EtJ.ff,g*+lsfiH

14

From: Di Glorgi Fabio lmallto:Fabio.DlGlorgÌ@saipem'eni,luSent: Thursday, 9 October 2008 10:56 AM

Tor Colin Gibson; Davld LansburyCc: Legrand AntolneSubject: FW: Letter re marltlme tralnfng

HiColin, David,Thls is now urgent; as you know we have a mettng next week with Chirs Cain to agree whether the found structure

lor the trainlng ls accePtable.Pls provlde your comments ASAP'

Thanks,Fabio

Fromr DiGlorgl FabioSent: FridaY, October 03, 2008 3:41 PM

To:'[email protected],au'Ccr Legrand AntoineSubject: FW: Letter re maritíme tralnlng

f.\" , ri Colin,The new document received from chils Caln; can you pls review it and revert with your comments?

Thanks,Fabio

L

From : Rod Plckette [malltql rodpf ckette@m ua,org'aulSentr Friday, October 03/ 2008 1:57 PM

To: Dl Giorgi FabioGcr Chrls Cain; LEGRAND AntolneSubject: RE: Letter re marltime trainlng

FabÍo

Please find attached the complete documentatlon as requested'

-Trust this meets your requirements,

'/lease.get back to me lf I can asslst further'

Regards

Rod

Rod PickettePolicy Executive OfflcerMaritime Utrlon of AustrallaPollfical Resoutce CentreCanberraPh 02-6230 0768Fax 02-6230 7923lUlobíle 0429 2A4711

From: Di Giorgi Fablo [mailto:Fablo,[email protected],ít]Sent; Tuesdayr 30 September 2008 6t44PMTo: Rod Pickette

2

15

Cc; Chrls CaÍn; Legrand AntolneSubjectr FW: Letter re maritime trainfng

Rod,Can you pls provide the rnissìng pages (6 to 18)?'fhanfts,

Fabio

t

I

From: Rod Plckette lmallto:rodpickette@mua,oro,aul On Behalf Of Paddy Crumlln

Sent: Tuesday, September 23, 2Q0B 4l5B PM

To: DiGlorglFabloCc: Chris CainSubjech Letter re marltlme tralnlng

Mr Fabio ÞiGlorgiBlacktlp Project ManagerSalpem

Dear Mr Di Giorgi

'f.- lease find attached a letter followlng up your dlscussions and communlcation with Chris Cain, along wlth\' oupplementary documentation as requested,

I look foruard to meeting with You,

Regards

PaddY

Paddy CrumlinNatÍonal SecretarYMaritime Union of Australia

TI

"' ,ffltu" rQu

ÈÍl,slmmMarltlme Unlon of Australia"

3

16

tD[..-. -8'Molan Thomas

From;SentlTo:Gc:SubJect:Attachments:

Refer attached

Regards

David Lansbury

lansbury <dlansbury@iinet, net,au>Sunday, I November 2008 3:19 PMLEGRAND Antoined lansbury@shr-servlces. com.auBrleflng NoteBrlefing Note MUA Training Fund,doc

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17

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Intt'oduction

Etri are developing the Blaoktip gas fleld located in the Joseph Bonapalte Gulf, apptoximately

245 kJî south west of Datwin,

Eni have awarded ths following soopos of workto Saipem,

l Installation of the Blaolrtip unmanned wellhead plafform

t Installation ofa 1 10km subsea export gas pipelino flom tho platfonn to shore'

t Installation of2.5km onshore gas condensate pipelino runníng below g¡ound to the

. Blacktip Gæ PlantSaipom are ourrently installingthe subsea pipelines.

MalitLne Emplovees Trainine Limited (MET)

Eni have agreed to pay ono million dollars into MET payable in two_instalmonts of $500'000,

tho first instalment to be paid once the constitution of MET is agreed and the balanse at the

completion of the above scopes of work.

The Certifioate of Registration has been sent to you for reviow and comment.

Escrow

In recognition that agteemont on the sonstitution of MET may take some time to settle the

parties have agreed ihat the first instalment should bo placed in esorow.

Unfortunately the MUA have demande¿l that first instalment is paid into MET on or beforo

30/r112008.

Bofore the fìrst instalment is paid into esorow Eni require that the constitution is changecl to

reflect the following:

I Agr€ement on tho composition of the board i.e, equal representation,

t Aleement onth - the constitution

r Alteementthati inPlace,thenMET

wãuld be wound nd'

Note

MUA led by thoir national offioe have oun'ontþ tabled a training claim during negotiations to

renew the MUA Vessel Operators Agreements, at the same time the naiional seoretaty is

seeking meotings with the operating cornpanies,

DLA

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18