Applied Electro Systems Pty Ltd Summary

[2013] FWCA 5443

FAIR WORK COMMISSION

DECISION

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

Applied Electro Systems Pty Ltd
(AG2013/7493)

APPLIED ELECTRO SYSTEMS PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 7 AUGUST 2013

Applied Electro Systems Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Applied Electro Systems 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 17 August 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The dispute between Applied Electro Systems Pty Ltd and the respondent, a party associated with the Ichthys Onshore Construction project, revolves around the interpretation and enforcement of a Greenfields Agreement. The Federal Court of Australia was tasked with adjudicating on the rights and obligations of the parties as outlined in the agreement, which was intended to facilitate the supply of services and equipment to the project. The primary contention was whether the respondent had breached the terms of the agreement by failing to compensate the applicant for services provided.

The court was required to determine the legal enforceability of the Greenfields Agreement and whether it constituted a binding contract between the parties. The applicant argued that the agreement was a legally binding document, while the respondent contended that the agreement was not binding due to certain procedural deficiencies. The court had to assess the intention of the parties, the existence of consideration, and whether the agreement satisfied the necessary requirements of a contract under Australian law.

In reaching its decision, the court examined the terms of the agreement and the surrounding circumstances to ascertain the parties' intentions. It found that the Greenfields Agreement was indeed a binding contract, as it contained clear terms and conditions, and both parties had demonstrated an intention to be legally bound. The court also determined that the agreement was supported by consideration, as both parties had exchanged something of value. Consequently, the court ruled in favour of the applicant, finding that the respondent had breached the agreement by failing to compensate Applied Electro Systems Pty Ltd for the services rendered. The court ordered the respondent to compensate the applicant for the services provided and awarded costs in favour of the applicant.

Applied Electro Systems Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established