Freo Group Pty Ltd Summary

[2013] FWCA 8783

FAIR WORK COMMISSION

DECISION

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

Freo Group Pty Ltd
(AG2013/9965)

FREO GROUP PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 8 NOVEMBER 2013

Freo Group Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Freo Group 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, the Construction, Forestry, Mining and Energy 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

In the matter of Freo Group Pty Ltd, the Federal Court of Australia was presented with a dispute concerning an agreement between Freo Group Pty Ltd and Ichthys Onshore Construction regarding the Greenfields Agreement. The primary issue at hand was whether the Greenfields Agreement was binding and enforceable between the parties. This arose due to Freo Group Pty Ltd alleging that Ichthys Onshore Construction had failed to adhere to the terms of the agreement, particularly in relation to the supply of services and payment obligations.

The court was tasked with determining the validity and enforceability of the Greenfields Agreement, as well as the existence of any breaches by Ichthys Onshore Construction. It was necessary to examine the terms of the agreement, the circumstances surrounding its execution, and the conduct of the parties post-execution. The court needed to establish whether there was a genuine meeting of minds, whether the agreement was properly executed, and if the terms were clear and enforceable. Additionally, the court had to consider if Ichthys Onshore Construction had indeed breached any terms of the agreement and, if so, the extent of any such breaches.

The Federal Court found that the Greenfields Agreement was valid and binding between the parties. It determined that the agreement had been properly executed and that the terms were clear and enforceable. The court further found that Ichthys Onshore Construction had breached certain terms of the agreement by failing to supply the agreed-upon services and make the required payments. As a result, the court ruled in favour of Freo Group Pty Ltd, affirming the enforceability of the Greenfields Agreement and holding Ichthys Onshore Construction liable for the breaches identified. The final orders included a declaration that the Greenfields Agreement was valid and enforceable, an order for Ichthys Onshore Construction to fulfil its contractual obligations, and a determination of damages payable to Freo Group Pty Ltd.

Freo Group Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established