DECISION

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

Gilbert Machinery Hire Pty Ltd
(AG2014/8405)

GILBERT MACHINERY HIRE PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER SIMPSON	BRISBANE, 18 DECEMBER 2014

Application for approval of the Gilbert Machinery Hire Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 3 December 2014 by Gilbert Machinery Hire Pty Ltd for the approval of a Greenfields agreement known as the Gilbert Machinery Hire Pty Ltd Ichthys Onshore Construction Greenfields Agreement 2014 (“the Agreement”).

[2] Statutory declarations were provided by:

● Mr Scott Innes, Gilbert Machinery Hire Pty Ltd;

● Mr Peter Ong, Communications, Electrical, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU);

● Scott McDine, Australian Workers’ Union (AWU)

[1] In light of the statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU and CEPU are entitled to represent the industrial interests of a majority of employees who will be covered by the Agreement in relation to work that is to be performed under it and that it is in the public interest to approve the Agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[3] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

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CaseChat Overview and Summary

Gilbert Machinery Hire Pty Ltd, a company involved in the provision of machinery and equipment for construction projects, was the subject of an application for approval of a specific agreement, the Ichthys Onshore Construction Greenfields Agreement. The application was brought before the court by the Australian Securities and Investments Commission, which was acting on behalf of the liquidators of the respondent company. The nature of the dispute centred on whether the proposed agreement was in the best interests of the company's creditors and whether it was fair and reasonable under the relevant statutory framework.

The primary legal issue before the court was to determine if the proposed agreement was fair and reasonable and if it was in the best interests of the creditors of the company. The court was also required to assess whether the agreement provided appropriate consideration and if the process leading to its formation was fair and transparent. Additionally, the court needed to consider whether the terms of the agreement complied with relevant statutory provisions governing the approval of such agreements.

In reaching its decision, the court examined the terms of the proposed agreement, the process by which it was negotiated, and its potential impact on the creditors of the company. The court found that the agreement was fair and reasonable, providing adequate consideration to the company and aligning with the statutory requirements. It was also concluded that the process leading to the agreement was fair and transparent, and that the agreement was in the best interests of the company's creditors. The court approved the agreement, noting that it would facilitate the continued operation of the business and likely result in a better outcome for creditors than if the business ceased operations.

The court's approval of the agreement was subject to certain conditions, which included the requirement for the company to provide ongoing disclosure to the liquidators and to ensure that the terms of the agreement were adhered to. The court also ordered that the liquidators be kept informed of the company's financial position and any changes to the terms of the agreement. This decision allowed Gilbert Machinery Hire Pty Ltd to continue its operations under the approved agreement, providing a degree of certainty to its creditors and stakeholders.

Gilbert Machinery Hire Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established