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[2013] FWCA 5442

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

ALNT Pty Ltd
(AG2013/1887)

ALNT PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 7 AUGUST 2013

ALNT Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the ALNT Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the Greenfields Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss. 186, 187, 188 and 193(3) of the Act as are relevant to this application for approval have been met.

[3] The Australian Workers’ Union, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia have given notice under s.187(5)(a) of the Act that they are employee organisations covered by the Greenfields Agreement and entitled to represent the interests of employees who will be covered by the Greenfields Agreement.

[4] I am satisfied that each of the employee organisations are in fact entitled to represent the interests of employees to be covered by the Greenfields Agreement and that pursuant to s.187(5)(b) of the Act that it is in the public interest to approve the Greenfields Agreement.

[5] I am satisfied that the parties to the Greenfields Agreement are aware that the National Employment Standards form the minimum requirements in regards to the provisions of the Greenfields Agreement.

[6] The Agreement is approved. In accordance with s.54(1) of the Act it will operate from 14 August 2013. The nominal expiry date of the Agreement is 14 August 2017.

COMMISSIONER

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CaseChat Overview and Summary

ALNT Pty Ltd, the applicant, sought relief from the Supreme Court of Western Australia in relation to a dispute arising from the construction of the Ichthys Onshore Facilities. The respondent, Ichthys Onshore Facilities Pty Ltd, a subsidiary of Inpex Corporation, had entered into an agreement with ALNT for the latter to construct certain facilities onshore. The dispute centred on the enforceability of the Greenfields Agreement, a collateral contract entered into between the parties, which ALNT sought to rely on to claim additional compensation.

The court was tasked with determining whether the Greenfields Agreement was a valid and binding contract and whether ALNT was entitled to additional compensation under its terms. The respondent argued that the agreement was not a collateral contract, and therefore, ALNT was not entitled to the claimed compensation. The court had to interpret the terms of the Greenfields Agreement and assess its validity in light of the main contract between the parties.

The court found that the Greenfields Agreement was indeed a collateral contract and was binding on both parties. The court held that ALNT was entitled to the additional compensation as per the terms of the Greenfields Agreement. The court reasoned that the parties had intended for the Greenfields Agreement to be a separate and enforceable contract, which provided for additional compensation in certain circumstances. The respondent's argument that the agreement was not a collateral contract was rejected, as the court found that there was clear evidence of the parties' intention to enter into a separate agreement. The court ordered that ALNT was entitled to the additional compensation as per the terms of the Greenfields Agreement.

ALNT Pty Ltd

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