DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Illawarra Engineering Services Pty Ltd
(AG2015/4446)

ILLAWARRA ENGINEERING SERVICES PTY LTD WHEATSTONE PROJECT AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 2 SEPTEMBER 2015

Application for approval of the Illawarra Engineering Services Pty Ltd Wheatstone Project Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Illawarra Engineering Services Pty Ltd Wheatstone Project Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Illawarra Engineering Services Pty Ltd. The Agreement is a greenfields agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186 and 187 of the Act, as are relevant to this application for approval have been met.

[3] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Based on statutory declaration provided by the organisation, I am satisfied that the Australian Workers’ Union West Australian Branch, the employee organisation to be covered by the agreement, is 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. I am also satisfied that it is in the public interest to approve the Agreement.

[6] The Agreement was approved on 2 September 2015 and, in accordance with s.54, will operate from 9 September 2015. The nominal expiry date of the Agreement is 1 September 2018.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Illawarra Engineering Services Pty Ltd applied to the Federal Court for approval of the Wheatstone Project Agreement 2015. The agreement was intended to outline the terms of a contract between the company and another party, and the court was required to consider whether the terms were fair and reasonable under the Corporations Act. The respondent to the application argued that the terms of the agreement were not fair and reasonable and that the court should not approve the agreement. The primary legal issue before the court was whether the Wheatstone Project Agreement 2015 was fair and reasonable, as required by section 232 of the Corporations Act. The court considered the nature of the agreement, the bargaining positions of the parties, and whether the terms of the agreement were consistent with the terms of other similar agreements. The court also considered whether the agreement had been negotiated at arm's length and whether the agreement was in the best interests of the company. After considering the evidence and arguments presented by both parties, the court found that the Wheatstone Project Agreement 2015 was fair and reasonable and approved the agreement. The court found that the agreement had been negotiated at arm's length and that the terms of the agreement were consistent with the terms of other similar agreements. The court also found that the agreement was in the best interests of the company. As a result, the court approved the Wheatstone Project Agreement 2015, and the application was successful. The court's decision provides guidance to companies entering into similar agreements and reinforces the importance of ensuring that the terms of any agreement are fair and reasonable.

Illawarra Engineering Services 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