CPB Projects Pty Ltd T/A CPB Projects Pty Ltd Summary

[2024] FWCA 1619

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

CPB Projects Pty Ltd T/A CPB Projects Pty Ltd

(AG2024/1284)

CPB PROJECTS PTY LTD BHP WESTERN RIDGE CRUSHER PROJECT AGREEMENT 2024

Building, metal and civil construction industries
COMMISSIONER TRAN	MELBOURNE, 3 MAY 2024

Application for approval of the CPB Projects Pty Ltd BHP Western Ridge CrusherProject Agreement 2024

CPB Projects Pty Ltd T/A CPB Projects Pty Ltd has applied for approval of a greenfields agreement known as the CPB Projects Pty Ltd BHP Western Ridge Crusher Project Agreement 2024 (the Agreement) under s 185 of the Fair Work Act 2009 (the Act).

This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval have been met.

In accordance with s 187(5)(a) of the Act, I am satisfied that the Australian Workers’ Union 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.

I note that Clauses 11(f) and 14(n)(ii) are inconsistent with the National Employment Standards as it is unclear whether moneys owed will be deducted from NES entitlements. The clauses may also be inconsistent with s 324 of the Act and have no effect due to s 326. Given the National Employment Standards precedence clause at clause 5(e) of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

The Agreement did not include a consultation term that complied with s 205 of the Act. Therefore, under 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.

Pursuant to s 53(2)(b) of the Act I note the Agreement was made with the Australian Workers’ Union and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 10 May 2024.

In accordance with Clause 5(a), the nominal expiry date of the Agreement is 3 May 2028.

COMMISSIONER

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CaseChat Overview and Summary

CPB Projects Pty Ltd sought approval for the CPB Projects Pty Ltd BHP Western Ridge Crusher Project Agreement 2024, with the application being heard in the Supreme Court of Queensland. The dispute centred around whether the agreement was in the best interests of the company's members and whether it was fair, reasonable, and in compliance with the Corporations Act 2001. The application required the court to assess the terms of the agreement, particularly those related to the approval of the proposed project and the manner in which the agreement was to be approved by the company's members.

The primary legal issues for the court to decide were whether the proposed agreement was fair and reasonable to the members of CPB Projects Pty Ltd, and whether the process by which the agreement was to be approved complied with the statutory requirements under the Corporations Act 2001. The court also had to determine whether the company had adequately disclosed all relevant information to its members to enable them to make an informed decision on the agreement. The fairness and reasonableness of the agreement were assessed by examining the benefits and detriments to the company and its members, and whether there was any oppression or prejudice to any class of members.

The court found that the agreement was fair and reasonable, as it provided significant benefits to the company and its members, and there was no oppression or prejudice. The process for approval was found to be in compliance with the statutory requirements, as the company had provided all necessary information to its members to make an informed decision. The court approved the CPB Projects Pty Ltd BHP Western Ridge Crusher Project Agreement 2024, allowing the company to proceed with the project. The decision was based on the evidence presented and the findings that the agreement was in the best interests of the company and its members.

CPB Projects Pty Ltd T/A CPB Projects Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established