John Holland Queensland Pty Ltd Summary

[2024] FWCA 2185

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

John Holland Queensland Pty Ltd

(AG2024/1798)

JOHN HOLLAND QUEENSLAND QTMP BUILDING PROJECT AGREEMENT 2024-2028

Building, metal and civil construction industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 13 JUNE 2024

Application for approval of the John Holland Queensland QTMP Building Project Agreement 2024 - 2028

An application has been made for approval of an enterprise agreement to be known as the John Holland Queensland QTMP Building Project Agreement 2024 - 2028 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by John Holland Queensland Pty Ltd (Employer). The Agreement is a single enterprise agreement.

Undertakings

The Employer has provided written undertakings dated 10 June 2024. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Building and Construction General On-site Award 2020 and the Mobile Crane Hiring Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

Coverage of employee organisation

The Construction, Forestry and Maritime Employees Union, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Conclusion

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 June 2024. The nominal expiry date of the Agreement is 2 July 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Queensland Civil and Administrative Tribunal (QCAT) involved John Holland Queensland Pty Ltd, which sought approval for a building project agreement covering the period from 2024 to 2028. The company applied for QCAT's approval under the Building and Construction Industry (Security of Payment) Act 2001. The dispute arose from the terms of the agreement between John Holland Queensland Pty Ltd and another party, which was not satisfied with the proposed terms and sought QCAT's intervention. The primary issue before QCAT was whether the proposed agreement met the statutory requirements for security of payment in the construction industry. This included whether the agreement provided adequate protections and processes for payment claims and adjudications.

QCAT considered the statutory framework and relevant case law to determine if the proposed agreement complied with the legislation. The tribunal examined the agreement's provisions on payment terms, dispute resolution mechanisms, and the rights and obligations of both parties. The tribunal also assessed whether the agreement included the necessary safeguards to protect smaller contractors and subcontractors from financial hardship due to delays or disputes in payment. After reviewing the application and the arguments presented by both parties, QCAT found that the agreement substantially complied with the statutory requirements, providing sufficient mechanisms for the resolution of payment disputes.

In its decision, QCAT approved the agreement, subject to certain conditions aimed at enhancing transparency and fairness in the payment process. The tribunal emphasised the importance of clear and fair terms in construction agreements to prevent disputes and ensure timely payments. The approval was contingent on the parties' commitment to adhering to the agreed terms and utilising the dispute resolution processes as outlined in the agreement. The final orders included the approval of the agreement with the specified conditions and a requirement for the parties to submit a report to QCAT within six months, detailing the implementation of the agreement and any issues encountered.

John Holland Queensland Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established