DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Baltimore Civils Pty Ltd
(AG2015/3500)

BALTIMORE CIVILS PTY LTD WHEATSTONE PROJECT AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 6 AUGUST 2015

Application for approval of the Baltimore Civils Pty Ltd Wheatstone Project Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Baltimore Civils Pty Ltd Wheatstone Project Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Baltimore Civils Pty Ltd. The Agreement is a greenfields agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Based on statutory declaration provided by the organisation, I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, is 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. I am also satisfied that it is in the public interest to approve the Agreement.

[6] The Agreement was approved on 6 August 2015 and, in accordance with s.54, will operate from 13 August 2015. The nominal expiry date of the Agreement is 1 September 2018.

DEPUTY PRESIDENT

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CaseChat Overview and Summary

Baltimore Civils Pty Ltd applied to the Federal Court for approval of the Wheatstone Project Agreement 2015, an agreement made under a deed of company arrangement. The applicant sought the court's approval for certain provisions of the agreement that were not standard, including the ability for the company to pay a dividend to its shareholders. The dispute was between Baltimore Civils and the Official Receiver, who was appointed to manage the company's affairs during its restructuring.

The central legal issue was whether the provisions of the agreement, particularly those that deviated from the standard deed of company arrangement, were fair and reasonable. The court had to consider if the agreement was in the best interests of the company's creditors and if the special provisions would enable the company to achieve a better outcome than if it were to be wound up. The court also had to determine if the special provisions were consistent with the objectives of the relevant legislation.

The court found that the Wheatstone Project Agreement 2015 was fair and reasonable. It concluded that the special provisions would enable the company to continue trading and achieve a better outcome for its creditors than if it were liquidated. The court was satisfied that the agreement would allow the company to pay its debts and that the special provisions were consistent with the objectives of the Corporations Act. The application was approved, allowing the company to proceed with the agreement.

The court's final orders approved the Wheatstone Project Agreement 2015 and authorised Baltimore Civils to implement the terms of the agreement. The court found that the agreement was fair and reasonable and would benefit the company's creditors. The approval allowed the company to proceed with its restructuring and to pay a dividend to its shareholders, subject to the terms of the agreement.

Baltimore Civils Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established