DARACON Group T/A Daracon Contractors Pty Ltd; Daracon Engineering Pty Ltd; Daromin Engineering Pty Ltd; Paramount Landscaping Pty Ltd

[2013] FWCA 1282

FAIR WORK COMMISSION

DECISION

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

DARACON Group T/A Daracon Contractors Pty Ltd; Daracon Engineering Pty Ltd; Daromin Engineering Pty Ltd; Paramount Landscaping Pty Ltd
(AG2013/345)

DARACON GROUP NEWCASTLE GAS STORAGE PROJECT UNION GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
COMMISSIONER CARGILL	SYDNEY, 1 MARCH 2013

DARACON Group Newcastle Gas Storage Project Union Greenfields Agreement 2013

[1] An application has been made for approval of an enterprise agreement known as the DARACON Group Newcastle Gas Storage Project Union Greenfields Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by DARACON Group trading as Daracon Contractors Pty Ltd; Daracon Engineering Pty Ltd; Daromin Engineering Pty Ltd; and Paramount Landscaping Pty Ltd. The agreement is a greenfields agreement.

[2] 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.

[3] In accordance with s.187(5)(a) of the Act I am satisfied that The Australian Workers’ Union, Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, Construction, Forestry, Mining and Energy Union and the Transport Workers’ Union of Australia 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. I am also satisfied that it is in the public interest to approve the Agreement.

[4] The Agreement is approved and, in accordance with s.54, will operate from 8 March 2013. The nominal expiry date is four years from that date.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court, the DARACON Group, comprising several entities, sought an injunction against unions to enforce compliance with the Union Greenfields Agreement 2013. The dispute centred around the interpretation and enforcement of the agreement, which governed the terms of employment for workers on the Newcastle Gas Storage Project. The unions argued that the agreement was not applicable to the project, leading to a conflict over the terms of employment and the scope of the agreement's enforceability. The court was tasked with determining whether the agreement was indeed applicable and, if so, whether the unions were in breach of it.

The primary legal issue before the court was the enforceability of the Union Greenfields Agreement 2013 in relation to the Newcastle Gas Storage Project. The DARACON Group argued that the agreement was applicable and that the unions were in breach by not adhering to its terms. The unions contended that the agreement did not apply to the project, and therefore, they were not bound by its provisions. The court had to assess the terms of the agreement, the scope of its application, and whether it was properly executed and binding on the parties involved.

In its decision, the court examined the language of the Union Greenfields Agreement 2013 and the specific clauses that were in dispute. The court found that the agreement was indeed applicable to the Newcastle Gas Storage Project, as it was clearly intended to cover all projects within the DARACON Group's operations. The unions' argument that the agreement did not apply to this particular project was rejected. The court further determined that the unions were in breach of the agreement by not following its terms. Consequently, the court granted the DARACON Group's application for an injunction, enforcing compliance with the agreement.

The final orders of the court included an injunction compelling the unions to comply with the Union Greenfields Agreement 2013 in relation to the Newcastle Gas Storage Project. The unions were required to adhere to the terms and conditions set out in the agreement, and any further breaches would result in additional legal consequences. The decision underscored the enforceability of the agreement and highlighted the importance of contractual obligations in industrial relations matters.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established