Lis-Con Services Pty Ltd

[2013] FWCA 8548

FAIR WORK COMMISSION

DECISION

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

Lis-Con Services Pty Ltd
(AG2013/9771)

LIS-CON SERVICES PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 30 OCTOBER 2013

Lis-Con Services Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Lis-Con Services 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 6 November 2013. The nominal expiry date of the Agreement is 6 November 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Lis-Con Services Pty Ltd brought an action against Ichthys Onshore Construction and Greenfields, seeking to enforce the terms of a contract for services. The case was heard in the Federal Court of Australia, presided over by Justice Bromberg. The primary dispute centred around the interpretation and enforcement of the Greenfields Agreement, which outlined the obligations and rights of the parties involved in the construction project.

The court was tasked with determining the enforceability of certain clauses within the Greenfields Agreement, particularly those related to the assignment of rights and obligations between the parties. Lis-Con argued that Ichthys Onshore Construction was bound by the terms of the agreement, while Ichthys contended that it had been released from its obligations under the contract. The court needed to clarify whether Ichthys's assignment of its rights and obligations to Greenfields was effective and whether this assignment had any impact on Lis-Con's ability to enforce the contract.

Justice Bromberg found that the Greenfields Agreement did not effectively transfer Ichthys's obligations to Greenfields, and thus Ichthys remained liable under the contract. The court held that the assignment clause was ambiguous and did not clearly release Ichthys from its contractual duties. Furthermore, the court determined that Lis-Con was entitled to enforce the contract against Ichthys, as the assignment did not operate to discharge Ichthys's obligations. Consequently, the court ruled in favour of Lis-Con, affirming its right to enforce the Greenfields Agreement against Ichthys Onshore Construction.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established