DICE Australia Pty Ltd

[2013] FWCA 5441

FAIR WORK COMMISSION

DECISION

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

DICE Australia Pty Ltd
(AG2013/2006)

DICE AUSTRALIA PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 7 AUGUST 2013

DICE Australia Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the DICE Australia 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 14 August 2013. The nominal expiry date of the Agreement is 14 August 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of DICE Australia Pty Ltd, the Federal Court of Australia was presented with a dispute between DICE Australia and the contractor responsible for the construction of the Ichthys Onshore Facilities. The crux of the matter was the interpretation and application of the Greenfields Agreement, which governed the relationship between the parties during the construction phase of the project. DICE Australia alleged that the contractor breached the agreement by failing to meet certain performance standards and deadlines, leading to financial penalties and a demand for rectification of the alleged breaches.

The court was tasked with determining whether the contractor's actions constituted a breach of the Greenfields Agreement, and if so, what remedies were available to DICE Australia. This required the court to closely examine the terms of the agreement, the performance history of the contractor, and the specific obligations and expectations set forth in the contract. The court had to assess whether the breaches alleged by DICE Australia were justified and, if they were, what the appropriate legal consequences should be under the agreement.

The court found that the contractor had indeed breached the Greenfields Agreement in several respects. The breaches included failure to adhere to the agreed-upon timelines and substandard quality of work, which were substantiated by the evidence presented. The court ruled that these breaches warranted the imposition of financial penalties as stipulated in the agreement. Additionally, the court ordered the contractor to rectify the deficiencies within a specified timeframe and to compensate DICE Australia for the additional costs incurred due to the delays and substandard work.

The final orders of the court mandated that the contractor rectify the identified breaches within a set period and pay DICE Australia the financial penalties and compensation for the additional costs. The court's decision provided clarity on the enforceability of the Greenfields Agreement and reinforced the importance of adhering to contractual obligations in major construction projects.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established