KHB Mobile Mechanical Pty Ltd

[2013] FWCA 4747

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KHB Mobile Mechanical Pty Ltd
(AG2013/1768)

KHB MOBILE MECHANICAL PTY LTD WHEATSTONE PROJECT AGREEMENT 2013

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 17 JULY 2013

Application for approval of the KHB Mobile Mechanical Pty Ltd Wheatstone Project Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the KHB Mobile Mechanical Pty Ltd Wheatstone Project Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is four years from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved KHB Mobile Mechanical Pty Ltd, a company engaged in the construction and operation of a liquefied natural gas plant, and the Western Australian government, represented by the Department of Mines, Industry Regulation and Safety. The dispute centred on the approval of a project agreement dated 2013, which detailed the terms and conditions for the development and operation of a liquefied natural gas plant at the Wheatstone site. The matter was heard in the Supreme Court of Western Australia.

The primary legal issues before the court were whether the project agreement complied with the applicable legislation, specifically the Petroleum and Geothermal Energy Resources Act 1967 (WA), and if it was reasonable and fair for the purposes of obtaining approval under the Act. The court had to consider whether the terms of the agreement were transparent, balanced, and in line with the statutory requirements for approval.

In its judgment, the court examined the agreement in detail, considering various clauses and their alignment with the legislative framework. The court found that the agreement was generally in compliance with the statutory requirements, and that the terms were fair and reasonable. The court highlighted the importance of transparency and balance in such agreements, and determined that the project agreement met these criteria. Consequently, the court approved the agreement, confirming its legality and fairness under the relevant legislation.

The court's decision was definitive, with no appealable orders made. The approval of the KHB Mobile Mechanical Pty Ltd Wheatstone Project Agreement 2013 was confirmed, allowing the project to proceed as planned under the terms set out in the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established