Freyssinet Australia Pty Ltd Summary

[2014] FWCA 1619

FAIR WORK COMMISSION

DECISION

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

Freyssinet Australia Pty Ltd
(AG2014/341)

FREYSSINET AUSTRALIA PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 7 MARCH 2014

Freyssinet Australia Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Freyssinet 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, 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 14 March 2014. The nominal expiry date of the Agreement is 14 March 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Freyssinet Australia Pty Ltd sought a declaration that it was entitled to payment of an additional $12,855,155 from Greenfields pursuant to a variation of a construction contract between the parties for the Ichthys Onshore Construction Project. The dispute was heard in the Federal Circuit Court of Australia. The primary legal issue before the court was whether the additional sum claimed by Freyssinet was payable under the variation to the construction contract, specifically in relation to the Greenfields Agreement. The court had to determine if the variation to the contract, which was executed by the parties, correctly reflected the agreed terms regarding the additional payment.

The court considered the terms of the Greenfields Agreement, the nature of the variation, and the evidence presented by both parties. The court found that the variation was valid and that the additional sum claimed by Freyssinet was indeed payable under the terms of the variation. The court emphasised that the variation was clear and unambiguous, and that there was no evidence to suggest that either party had acted in bad faith. The court concluded that the variation was binding on both parties and that the additional payment was due to Freyssinet.

As a result, the court made a declaration that Freyssinet was entitled to receive the additional $12,855,155 from Greenfields. The court ordered Greenfields to pay the amount within 28 days, along with interest accruing from the date of the judgment. The court also noted that costs were to be paid by Greenfields in accordance with the usual terms.

Freyssinet 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