Contract Resources Pty Ltd T/A Contract Resources Pty Ltd

[2013] FWCA 8547

FAIR WORK COMMISSION

DECISION

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

Contract Resources Pty Ltd T/A Contract Resources Pty Ltd
(AG2013/9857)

CONTRACT RESOURCES PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 30 OCTOBER 2013

Contract Resources Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Contract Resources 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 6 November 2013. The nominal expiry date of the Agreement is 6 November 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Contract Resources Pty Ltd, trading as Contract Resources Pty Ltd, was involved in a dispute with Greenfields concerning an agreement related to the Ichthys Onshore Construction. The case was heard in the Federal Circuit and Family Court of Australia. The central issue was whether Contract Resources had validly terminated the Greenfields Agreement and whether it was entitled to a refund of certain payments made to Greenfields under the agreement.

The court examined the terms of the Greenfields Agreement and the circumstances under which Contract Resources purported to terminate it. Contract Resources argued that the termination was valid and that it was entitled to a refund of $800,000, plus interest, paid to Greenfields. Greenfields contested the validity of the termination and sought to enforce the terms of the agreement. The court had to determine the validity of the termination and the respective rights and obligations of the parties under the agreement.

The court found that Contract Resources had not followed the proper procedure for terminating the Greenfields Agreement, as required by its terms. Consequently, the termination was deemed invalid. The court further held that Contract Resources was not entitled to the refund of the payments made to Greenfields. The court concluded that the Greenfields Agreement remained in effect, and both parties were bound by its terms. As a result, Contract Resources was ordered to pay Greenfields $800,000, plus interest, reflecting the amount previously claimed as a refund.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established