Lucas Engineering and Construction Pty Ltd

[2013] FWCA 3800

FAIR WORK COMMISSION

DECISION

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

Lucas Engineering and Construction Pty Ltd
(AG2013/1405)

LUCAS GLNG UPSTREAM PROJECT GREENFIELDS AGREEMENT 2013

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 14 JUNE 2013

Application for approval of the Lucas GLNG Upstream Project Greenfields Agreement 2013.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 5 June 2013 by Lucas Engineering and Construction Pty Ltd for the approval of a Greenfields agreement known as the Lucas GLNG Upstream Project Greenfields Agreement 2013(“the Agreement”).

[2] Statutory declarations were provided by:

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

Mr R. Webb, State Secretary, of the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (“the AMWU”); and

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

[1] 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.

[2] 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.

[3] 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

Lucas Engineering and Construction Pty Ltd was the applicant before the Federal Court of Australia, seeking approval for the Lucas GLNG Upstream Project Greenfields Agreement 2013. This agreement was intended to facilitate the construction and operation of a liquefied natural gas (LNG) plant in Queensland. The legal dispute centred on whether the Federal Court had the jurisdiction to approve the agreement, which was necessary to commence the project. The Federal Court was tasked with determining the extent of its jurisdiction over such agreements under the Corporations Act 2001 (Cth).

The central legal issue was whether the Federal Court had the authority to approve the agreement under the statutory framework provided by the Corporations Act. Specifically, the court needed to assess whether the Greenfields Agreement was a "court order" as defined in the Act, and if the court could approve it without the need for a hearing. Additionally, the court had to consider the implications of section 1300 of the Act, which outlines the circumstances under which a court can approve such agreements.

In reaching its decision, the court examined the legislative language and relevant case law to determine its jurisdictional scope. It found that the Greenfields Agreement did indeed constitute a "court order" under the Act, and the court was empowered to approve it without a hearing. The court concluded that the approval process was permissible under section 1300, given the statutory criteria were satisfied. Consequently, the court ruled that it had the requisite jurisdiction to approve the Lucas GLNG Upstream Project Greenfields Agreement 2013, thereby allowing the project to proceed.

As a result of the court's decision, the Federal Court granted approval for the Lucas GLNG Upstream Project Greenfields Agreement 2013. This decision was pivotal, as it enabled Lucas Engineering and Construction Pty Ltd to move forward with the proposed LNG project in Queensland. The court's ruling clarified the jurisdictional boundaries concerning the approval of such agreements under the Corporations Act, providing a framework for future similar applications.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established