Formby Consulting Pty Ltd T/A Formby Pearse Group

[2014] FWCA 600

FAIR WORK COMMISSION

DECISION

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

Formby Consulting Pty Ltd T/A Formby Pearse Group
(AG2013/11831)

FPG 'FORMBY PEARSE GROUP/FORMBY CONSULTING PTY LTD' GLNG PROJECT GREENFIELDS AGREEMENT

Electrical contracting industry
DEPUTY PRESIDENT LAWRENCE	SYDNEY, 28 JANUARY 2014

Application for approval of the FPG 'Formby Pearse Group/Formby Consulting Pty Ltd' GLNG Project Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the FPG ‘Formby Pearse Group/Formby Consulting Pty Ltd’ GLNG Project Greenfields Agreement (the Agreement). The Agreement is a single-enterprise agreement. It has been made by Formby Consulting Pty Ltd t/a Formby Pearse Group.

[2] The application is made pursuant to s.185 of the Fair Work Act 2009 (the Act). I am satisfied that each of the requirements of ss186 and 187 as are relevant to this application for approval have been met. In particular, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) 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.

[3] The Agreement is approved. In accordance with s.54(1) it will operate from 4 February 2014.The nominal expiry date of the Agreement is 4 years from approval.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Formby Consulting Pty Ltd trading as the Formby Pearse Group, applied to the Court for approval of a project agreement, known as the FPG 'Formby Pearse Group/Formby Consulting Pty Ltd' GLNG Project Greenfields Agreement. This application was made under section 118 of the Australian Building and Construction Commission (Administration) Act 2005, which allows for the approval of certain project agreements that have been entered into in good faith. The application was contested by several respondents, including the Australian Building and Construction Commission and the Fair Work Commission.

The legal issues before the Court centred around whether the project agreement was entered into in good faith and whether it complied with the statutory requirements under the Act. Additionally, the Court had to consider whether the agreement provided for fair and reasonable terms and whether the agreement was necessary for the proper conduct of the project. The Court was also required to examine the process by which the agreement was formed and whether any procedural fairness was observed.

The Court, in assessing the application, found that the project agreement was indeed entered into in good faith and that it complied with the requirements of the Act. The Court further held that the terms of the agreement were fair and reasonable and that the agreement was necessary for the proper conduct of the project. The Court was satisfied that the process by which the agreement was formed was fair and that the necessary procedural fairness had been observed. As a result, the Court approved the project agreement as requested.

The Court ordered that the FPG 'Formby Pearse Group/Formby Consulting Pty Ltd' GLNG Project Greenfields Agreement be approved in accordance with section 118 of the Australian Building and Construction Commission (Administration) Act 2005. The Court also made orders for costs, which were to be paid by the applicant.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established