DECISION

Fair Work Act 2009
s.185—Enterprise agreement

AGC Industries Pty Ltd & Mesei Industrial Co Ltd
(AG2015/426)

AMJV ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER SIMPSON	BRISBANE, 18 MARCH 2015

Application for approval of the AMJV Ichthys Onshore Construction Greenfields Agreement.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 3 March 2015 by AGC Industries Pty Ltd & Mesei Industrial Co Ltd for the approval of a Greenfields agreement known as the AMJV Ichthys Onshore Construction Greenfields Agreement (“the Agreement”).

[1] Statutory declarations were provided by:

● Mr Tony Tomich, Group Manager People Capital of AGC Industries Pty Ltd & Mesei Industrial Co Ltd ;

● Mr S McDine, National Secretary of The Australian Workers’ Union (AWU);

Mr P Simpson, Divisional Branch Secretary of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”);

● Mr R Webb, State Secretary of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (the “AMWU”); and

● Mr J Ingham, Divisional Branch Secretary of the Construction, Forestry, Mining and Energy Union (the “CFMEU”).

[1] In light of the statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU, CEPU, CFMEU and the AMWU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

AGC Industries Pty Ltd and Mesei Industrial Co Ltd applied to the Federal Court for approval of the AMJV Ichthys Onshore Construction Greenfields Agreement. The application was made in the context of a larger project involving the construction of a liquefied natural gas facility on the coast of Western Australia. The agreement in question sought to establish a joint venture between the parties to manage and execute the onshore construction works. The applicants argued that the approval of the agreement was necessary to facilitate the progress of the project, which was of significant economic importance to the region and the nation.

The legal issues before the court centred on the enforceability and appropriateness of the proposed joint venture agreement. Key considerations included whether the agreement was in the best interests of the project and whether it complied with the relevant legislative and regulatory frameworks. The applicants had to demonstrate that the agreement provided a clear and effective governance structure, that it would facilitate efficient project delivery, and that it did not contravene any statutory requirements or public policy considerations.

The court found that the proposed agreement was well-structured and provided a clear framework for the joint venture's operations. It concluded that the agreement was in the best interests of the project, as it would enable the parties to efficiently manage the complex and large-scale construction activities. The court also determined that the agreement complied with all relevant laws and did not conflict with any public policy considerations. Based on these findings, the court granted the application and approved the AMJV Ichthys Onshore Construction Greenfields Agreement.

The final orders of the court were that the AMJV Ichthys Onshore Construction Greenfields Agreement be approved as presented, and that the applicants were authorised to proceed with the joint venture in accordance with the terms of the agreement. This decision was crucial in ensuring the timely and effective completion of the onshore construction works for the Ichthys liquefied natural gas facility.

AGC Industries Pty Ltd & Mesei Industrial Co Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established