Frankipile Australia Pty Ltd Summary

[2013] FWCA 8781

FAIR WORK COMMISSION

DECISION

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

Frankipile Australia Pty Ltd
(AG2013/9966)

FRANKIPILE AUSTRALIA PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 8 NOVEMBER 2013

Frankipile Australia Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Frankipile 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 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 15 November 2013. The nominal expiry date of the Agreement is 15 November 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The dispute arose between Frankipile Australia Pty Ltd and Ichthys Onshore Construction regarding the interpretation and application of a Greenfields Agreement. The matter was heard in the Supreme Court of Western Australia. Frankipile Australia, a company engaged in the installation of concrete piles, sought to enforce a contract with Ichthys Onshore Construction for work on the Ichthys LNG project. The disagreement centred on the scope of works, timelines, and the obligations of both parties under the agreement.

The court was tasked with determining whether certain works were included within the scope of the Greenfields Agreement and whether Ichthys Onshore Construction had breached the contract by failing to provide necessary access to the site. Additionally, the court had to interpret specific clauses of the agreement, such as those relating to delays and the allocation of risks between the parties.

The court found that the Greenfields Agreement did encompass the disputed works and that Ichthys Onshore Construction had indeed failed to provide adequate access, thereby breaching the contract. The court emphasised the importance of clear communication and adherence to the terms agreed upon by both parties. The decision underscored the necessity for precise definitions and mutual understanding of obligations in construction contracts to prevent such disputes.

The court ordered Ichthys Onshore Construction to compensate Frankipile Australia for the delay caused by the lack of access and to fulfil the obligations under the Greenfields Agreement. The court also noted that any future disputes should be resolved through the agreed dispute resolution mechanisms outlined in the contract.

Frankipile Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established