Fredon (Qld) Pty Limited

[2024] FWCA 1936

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Fredon (Qld) Pty Limited

(AG2024/1666)

FREDON (QLD) PTY LIMITED SOUTHERN QUEENSLAND CORRECTIONAL PRECINCT STAGE 2 PROJECT AGREEMENT 2023

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 28 MAY 2024

Application for approval of the Fredon (Qld) Pty Limited Southern Queensland Correctional Precinct Stage 2 Project Agreement 2023

Fredon (Qld) Pty Limited has made an application for approval of an enterprise agreement known as the Fredon (Qld) Pty Limited Southern Queensland Correctional Precinct Stage 2 Project Agreement 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met.

The CEPU, being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2), I note that the Agreement covers the CEPU.

The Agreement was approved on 28 May 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In Fredon (Qld) Pty Limited, the applicant sought approval for the Southern Queensland Correctional Precinct Stage 2 Project Agreement 2023. The dispute involved the applicant's application to the Queensland Civil and Administrative Tribunal (QCAT) for approval of this agreement, which was intended to facilitate the development of a correctional facility in Southern Queensland. The application was brought before QCAT, which has jurisdiction to approve such agreements under the Building and Construction Industry (Security of Payment) Act 2002.

The legal issues before the tribunal centred around the validity and enforceability of the agreement under the relevant legislation. Key concerns included whether the agreement complied with the statutory requirements for security of payment, and if it was fair and reasonable in terms of its terms and conditions. The applicant argued that the agreement was necessary for the timely and efficient completion of the project, while the respondent raised objections regarding certain clauses that they claimed were unfair and prejudicial.

The tribunal carefully examined the terms of the agreement and considered the statutory framework governing security of payment in the construction industry. It assessed whether the agreement provided adequate protections and mechanisms for the prompt payment of progress claims, as mandated by the legislation. Additionally, the tribunal evaluated the fairness and reasonableness of the agreement's terms, taking into account the bargaining positions of the parties and the industry standards. Ultimately, the tribunal found that the agreement was in compliance with the statutory requirements and was fair and reasonable, leading to the approval of the agreement.

The tribunal's decision was based on a comprehensive analysis of the statutory provisions and the specific terms of the agreement. It determined that the agreement contained adequate provisions for the security of payment and that the terms were fair and reasonable. Consequently, the tribunal approved the Southern Queensland Correctional Precinct Stage 2 Project Agreement 2023, allowing the project to proceed as planned.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established