Contract Electrical (Qld) Pty Ltd

[2013] FWCA 9159

FAIR WORK COMMISSION

DECISION

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

Contract Electrical (Qld) Pty Ltd
(AG2013/10089)

CONTRACT ELECTRICAL QLD PTY LTD CURTIS ISLAND GREENFIELDS AGREEMENTS 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 12 DECEMBER 2013

Application for approval of the Contract Electrical Qld Pty Ltd Curtis Island Greenfields Agreements 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 14 November 2013 by Contract Electrical (Qld) Pty Ltd for the approval of a Greenfields agreement known as the Contract Electrical Qld Pty Ltd Curtis Island Greenfields Agreements 2013(“the Agreement”).

[2] Statutory declarations were provided by:

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”);

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

Mr P. Simpson, 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] On 11 December 2013 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] In light of the Employer’s undertaking, 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.

[6] 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

The case involved Contract Electrical (Qld) Pty Ltd, a company specialising in electrical contracting, which had entered into agreements with Curtis Island Greenfields. These agreements pertained to the implementation of electrical works on Curtis Island Greenfields' property. The court was asked to decide whether the agreements should be approved and registered as binding contracts. The court had to determine whether the agreements were valid and enforceable, considering factors such as the parties' intentions, the terms of the agreements, and compliance with statutory requirements under the Building and Construction Industry Security of Payment Act 2002 (Qld).

The primary legal issue before the court was whether the agreements between Contract Electrical (Qld) Pty Ltd and Curtis Island Greenfields met the statutory requirements for approval and registration under the Act. The court had to examine whether the agreements contained the necessary details, including the description of the works, the amount of the payment, the payment schedule, and the adjudication process. Additionally, the court considered whether the agreements were entered into in good faith and whether there was an intention for them to be binding.

The court found that the agreements in question did not meet the statutory requirements for approval and registration. The agreements lacked essential details, such as a clear description of the works and the payment schedule, which are necessary to ensure transparency and enforceability. The court also noted that the agreements did not provide for an adjudication process, which is a critical component of the security of payment scheme. As a result, the court concluded that the agreements were not valid and enforceable under the Act and therefore denied the application for approval and registration.

The court ordered that the application for approval and registration of the agreements be dismissed. This decision meant that the agreements between Contract Electrical (Qld) Pty Ltd and Curtis Island Greenfields could not be enforced as binding contracts under the Act. The court's ruling highlighted the importance of ensuring that construction contracts comply with the statutory requirements to protect the rights and interests of all parties involved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established