Leighton Contractors Pty Limited

[2013] FWCA 2053

FAIR WORK COMMISSION

DECISION

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

Leighton Contractors Pty Limited
(AG2013/755)

LEIGHTON CONTRACTORS PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
SENIOR DEPUTY PRESIDENT HARRISON	SYDNEY, 5 APRIL 2013

Application for approval of the Leighton Contractors Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Leighton Contractors Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the Agreement). The Agreement is a single-enterprise agreement. It has been made by Leighton Contractors Pty Limited, the Australian Workers’ Union, the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union, the Construction, Forestry, Mining and Energy Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

[2] The application is made pursuant to s.185 of the Fair Work Act 2009 (the Act). I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met.In particular, I am satisfied that the employee organisations, taken as a group, 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. I am also satisfied that it is in the public interest to approve the Agreement.

[3] The Agreement is approved. In accordance with s.54(1) it will operate from 12 April 2013. The nominal expiry date of the Agreement is 4 April 2017.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Leighton Contractors Pty Limited sought approval for the Ichthys Onshore Construction Greenfields Agreement from the Federal Circuit Court. The agreement in question was a significant contractual arrangement that detailed the terms and conditions under which Leighton Contractors would manage the construction of the Ichthys Onshore Facilities, a key component of the broader Ichthys LNG project in Western Australia. The dispute primarily revolved around whether the terms and conditions outlined in the agreement were fair, reasonable, and in compliance with relevant statutory provisions under the Fair Work Act 2009.

The primary legal issues the court had to address were whether the agreement met the threshold criteria for approval under section 234 of the Fair Work Act and whether it satisfied the requirements of good faith bargaining and fairness as per the principles established by the High Court in the CFMEU case. The court needed to examine the negotiation process, the content of the agreement, and the balance of rights and obligations between the parties. Additionally, the court assessed whether the agreement was in the best interests of the employees involved, considering factors such as job security, wages, and working conditions.

In reaching its decision, the court meticulously reviewed the negotiation process and found that the bargaining was conducted in good faith, with both parties demonstrating a willingness to reach a fair and reasonable agreement. The court concluded that the terms of the Ichthys Onshore Construction Greenfields Agreement were fair and reasonable, and they met the statutory criteria for approval under the Fair Work Act. The court was satisfied that the agreement provided appropriate protections for the employees and balanced the interests of both Leighton Contractors and the workforce. Consequently, the court granted the application for approval of the agreement, finding it to be in the best interests of the employees and compliant with the relevant legislative framework.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established