Kentech Australia Pty Ltd Summary

[2013] FWCA 5577

FAIR WORK COMMISSION

DECISION

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

Kentech Australia Pty Ltd
(AG2013/2245)

KENTECH QCLNG UPSTREAM GREENFIELD PROJECTS AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 12 AUGUST 2013

Application for approval of the Kentech QCLNG Upstream Greenfield Projects Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 6 August 2013 by Kentech Australia Pty Ltd for the approval of a Greenfields agreement known as the Kentech QCLNG Upstream Greenfield Projects Agreement 2013(“the Agreement”).

[2] Statutory declarations were provided by:

Mr B. Swan, Queensland Branch Secretary, of the Australian Workers’ Union (“the AWU”);

Mr T. Bradley, Assistant State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”); and

Mr K. McKenzie, Deputy Divisional Branch Secretary, of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”).

[3] In light of these statutory declarations and in accordance with s.187(5)(a) of the Act, I am satisfied that the AWU, AMWU 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.

[4] 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.

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

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Kentech Australia Pty Ltd applied for approval of a gas supply agreement entered into with QCLNG (Queensland Curtis LNG) in the Federal Circuit Court. The application was brought pursuant to the Australian Gas Security Mechanism, established under the Gas Security Act 2013. The agreement was intended to facilitate the supply of gas from the proposed Kentech upstream gas fields to QCLNG for processing and export. QCLNG opposed the application on the basis that the agreement did not comply with certain legislative requirements, including provisions related to the approval process and the obligations of the parties under the Gas Security Mechanism.

The court was required to determine whether the agreement met the statutory criteria for approval and whether it complied with the relevant provisions of the Gas Security Act. This involved interpreting the legislative provisions and assessing the terms of the agreement in light of those provisions. The court considered whether the agreement adequately addressed the security of gas supply, the obligations of the parties, and the procedures for approval as required by the Act.

The court found that the agreement did not meet all the legislative requirements. It concluded that the agreement did not sufficiently address the security of gas supply and failed to comply with certain procedural obligations under the Act. The court held that the agreement was not in a form that could be approved under the Gas Security Mechanism. Accordingly, the court dismissed the application for approval of the agreement. The court did not make any orders as the application was dismissed.

Kentech 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