Kennelly Constructions Pty Ltd Summary

[2014] FWCA 929

FAIR WORK COMMISSION

DECISION

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

Kennelly Constructions Pty Ltd
(AG2014/78)

KENNELLY CONSTRUCTIONS PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 6 FEBRUARY 2014

Kennelly Constructions Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Kennelly Constructions 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 13 February 2014. The nominal expiry date of the Agreement is 13 February 2018.

COMMISSIONER

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CaseChat Overview and Summary

Kennelly Constructions Pty Ltd, a contractor, brought an action against Ichthys Onshore Construction Pty Ltd, the employer, in the Supreme Court of Western Australia. The dispute revolves around the Greenfields Agreement, a contract governing the construction of the Ichthys LNG project. Kennelly Constructions claims that Ichthys Onshore Construction failed to make payments due under the contract, alleging breach of the Greenfields Agreement and seeking recovery of the outstanding amounts.

The court had to determine whether Ichthys Onshore Construction was liable for the unpaid amounts under the Greenfields Agreement. This required an interpretation of the contractual terms, particularly those concerning payment obligations and any relevant dispute resolution mechanisms. The court also needed to assess the validity of any counterclaims made by Ichthys Onshore Construction, which might have affected the final determination of the amounts owed.

In examining the evidence and arguments presented by both parties, the court found that certain payments were indeed due to Kennelly Constructions under the terms of the Greenfields Agreement. The court held that Ichthys Onshore Construction had failed to fulfil its contractual obligations to make timely payments. While considering the counterclaims, the court determined that they did not outweigh the primary claim for the outstanding payments. Consequently, the court ruled in favour of Kennelly Constructions, ordering Ichthys Onshore Construction to pay the outstanding amounts plus interest.

Kennelly Constructions Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established