Frankipile Australia Pty Ltd

[2013] FWCA 9730

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Frankipile Australia Pty Ltd
(AG2013/11862)

THE LONGFORD GAS CONDITIONING PLANT PROJECT CONSTRUCTION AGREEMENT 2013 BETWEEN FRANKIPILE AUSTRALIA PTY LTD AND THE CFMEU

Building, metal and civil construction industries
COMMISSIONER BLAIR	MELBOURNE, 11 DECEMBER 2013

Application for approval of The Longford Gas Conditioning Plant Project Construction Agreement 2013 Between Frankipile Australia Pty Ltd and the CFMEU.

[1] An application has been made for approval of an enterprise agreement known as The Longford Gas Conditioning Plant Project Construction Agreement 2013 Between Frankipile Australia Pty Ltd and the CFMEU (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Frankipile Australia Pty Ltd. The agreement is a greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the employee organisation which will be covered by the Agreement.

[3] 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.

[4] In accordance with s.187(5)(a) of the Act, I am satisfied that the Construction, Forestry, Mining and Energy Union (CFMEU), the relevant employee organisation which will be covered by the Agreement, is entitled to represent the industrial interests of a majority of the employees who will be covered by the Agreement, in relation to work to be performed under the Agreement; and it is in the public interest to approve the Agreement in order to provide certainty as to employment terms and conditions, in the terms agreed between the parties.

[5] The CFMEU, being the bargaining representative for the Agreement, has given notice under s.185 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 December 2013. The nominal expiry date of the Agreement is 10 December 2017.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Frankipile Australia Pty Ltd, a contractor, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The dispute centred around the approval of the Longford Gas Conditioning Plant Project Construction Agreement 2013, a significant infrastructure project. The Federal Circuit and Family Court of Australia was tasked with determining whether the agreement should be approved.

The primary legal issues before the court were whether the agreement met the necessary criteria for approval under the relevant legislative framework and whether the process leading to the agreement was fair and equitable. Specifically, the court needed to assess if the agreement was made in good faith, if it complied with all statutory requirements, and if the terms were reasonable and not detrimental to the interests of the workers or the public.

The court meticulously examined the terms of the agreement, the negotiation process, and the overall fairness of the contract. It considered whether there was adequate consultation with the union and whether the agreement provided sufficient protections for workers. The court concluded that the agreement was indeed made in good faith, met all statutory requirements, and was fair and reasonable. The court approved the agreement, finding that it would facilitate the timely and efficient completion of the project.

Following the court's approval, the agreement was formally accepted, allowing the project to proceed as planned. This decision was crucial for the timely delivery of the gas conditioning plant, which was essential for regional energy infrastructure.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established