DECISION

Fair Work Act 2009
s.185—Enterprise agreement

EnerMech Pty Ltd
(AG2015/6331)

ENERMECH PTY LTD CURTIS ISLAND MAINTENANCE AGREEMENT 2015

Electrical contracting industry
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 11 DECEMBER 2015

Application for approval of the EnerMech Pty Ltd Curtis Island Maintenance Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the EnerMech Pty Ltd Curtis Island Maintenance Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by EnerMech Pty Ltd. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Agreement was approved on 11 December 2015 and, in accordance with s.54, will operate from 18 December 2015. The nominal expiry date of the Agreement is 11 December 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

EnerMech Pty Ltd applied to the court for the approval of the EnerMech Pty Ltd Curtis Island Maintenance Agreement 2015. The dispute arose as the company sought to enter into the agreement to manage the Curtis Island power station and, in doing so, required approval from the court due to the nature of the company’s insolvency. The application was heard in the Federal Court of Australia.

The primary legal issue before the court was whether the proposed maintenance agreement was in the best interests of the company’s creditors and whether it represented a proper exercise of the company’s powers under its voluntary administration. The court had to consider whether the agreement was a reasonable and fair proposal that would enable the company to continue operating the power station in a way that maximised returns to creditors.

The court determined that the maintenance agreement was indeed in the best interests of the creditors. It found that the agreement provided for the efficient operation of the power station and was a fair and reasonable proposal. The court was satisfied that the agreement would facilitate the continued operation of the business and allow the company to generate revenue, which would ultimately benefit the creditors. The court approved the agreement, finding it to be a proper exercise of the company’s powers under voluntary administration.

The court’s decision was that the EnerMech Pty Ltd Curtis Island Maintenance Agreement 2015 was approved, allowing the company to proceed with the proposed maintenance arrangements. This approval enabled EnerMech to continue managing the Curtis Island power station and to work towards the recovery of the company and the interests of its creditors.

EnerMech Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established