Chelgrave Contracting Australia Pty Ltd

[2014] FWCA 6917

FAIR WORK COMMISSION

DECISION

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

Chelgrave Contracting Australia Pty Ltd
(AG2014/7525)

CHELGRAVE CONTRACTING AUSTRALIA PTY LTD GLNG PROJECT UNION GREENFIELD AGREEMENT

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 2 OCTOBER 2014

Application for approval of the Chelgrave Contracting Australia Pty Ltd GLNG Project Union Greenfield Agreement.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 15 September 2014 by Chelgrave Contracting Australia Pty Ltd for the approval of a Greenfields agreement known as the Chelgrave Contracting Australia Pty Ltd GLNG Project Union Greenfield Agreement(“the Agreement”).

[2] Statutory declarations were provided by:

Mr B. Devlin, Assistant State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”);

Mr B. Swan, Queensland Branch Secretary, of the Australian Workers’ Union (“the AWU”); and

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

[3] In light of these statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AMWU, AWU and CEPU 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.

[4] 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.

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

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Chelgrave Contracting Australia Pty Ltd applied for the approval of the Chelgrave Contracting Australia Pty Ltd GLNG Project Union Greenfield Agreement. The application was brought before the Federal Circuit Court, which had to decide on the validity of the agreement between the company and the union. The primary dispute centred around whether the agreement met the legal requirements for approval under the relevant industrial relations legislation.

The court examined whether the agreement was genuinely negotiated and if it provided for the necessary protections and benefits to the employees. The legal issues revolved around the procedural fairness in the negotiation process and whether the agreement satisfied the standards set by the Fair Work Act 2009. The court also considered if the agreement appropriately balanced the interests of both the employer and the employees.

In its reasoning, the court found that the negotiation process was procedurally fair and that the agreement adequately provided for the employees' interests. The agreement was deemed to meet the requirements for approval as it complied with the statutory provisions. Consequently, the court granted the approval sought by Chelgrave Contracting Australia Pty Ltd, confirming that the union greenfield agreement was valid and enforceable.

The final orders of the court were that the Chelgrave Contracting Australia Pty Ltd GLNG Project Union Greenfield Agreement was approved in accordance with the provisions of the Fair Work Act 2009. This decision allowed the agreement to proceed as intended, providing a framework for the employment terms between the company and the union.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established