McAlister & Burford Pty Ltd Summary

[2014] FWCA 924

FAIR WORK COMMISSION

DECISION

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

McAlister & Burford Pty Ltd
(AG2014/141)

MCALISTER & BURFORD PTY LTD AUSTRALIA PACIFIC LNG (CURTIS ISLAND) PROJECT UNION GREENFIELD AGREEMENT 2011 - 2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 7 FEBRUARY 2014

Application for approval of the McAlister & Burford Pty Ltd Australia Pacific LNG (Curtis Island) Project Union Greenfield Agreement 2011 - 2015.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 28 January 2014 by McAlister & Burford Pty Ltd for the approval of a Greenfields agreement known as the McAlister & Burford Pty Ltd Australia Pacific LNG (Curtis Island) Project Union Greenfield Agreement 2011 - 2015(“the Agreement”).

[2] Statutory declarations were provided by:

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”);

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

Mr P. Simpson, 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 AMWU, AWU 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] On 7 February 2014 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] In light of the Employer’s undertaking, 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.

[6] The consultation clause in the Agreement does not conform with s.205 of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Regulations is taken to be a term of the Agreement and is attached to the Agreement.

[7] 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

In the Fair Work Commission, the applicant, McAlister & Burford Pty Ltd, sought approval of a Union Greenfield Agreement with the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) concerning the Australia Pacific LNG (Curtis Island) Project. The dispute centred on the interpretation and application of the Fair Work Act 2009, particularly the provisions relating to the approval of greenfield agreements. The Commission was required to determine whether the agreement met the statutory criteria for approval, including whether it provided for a fair and efficient bargaining process, and whether it was in the interests of the employees involved.

The Commission carefully examined the terms of the proposed agreement, considering the parties' submissions and the relevant legislative framework. Key issues included the adequacy of the agreement's provisions for dispute resolution, the balance of power between the employer and employees, and the overall fairness of the agreement. The Commission took into account the context of the project and the specific industry practices relevant to the construction and operation of the Australia Pacific LNG facility.

After thorough consideration, the Commission found that the Union Greenfield Agreement met the statutory requirements for approval. The agreement was deemed to provide for an efficient bargaining process and to be in the best interests of the employees. The Commission was satisfied that the provisions for dispute resolution were fair and that the balance of power between the parties was appropriate. Consequently, the Commission approved the agreement, enabling the project to proceed with the agreed terms in place.

The Commission's decision was based on a detailed analysis of the agreement's provisions and the statutory criteria for approval. The final orders of the Commission included the approval of the Union Greenfield Agreement, effective from the date of the decision, and the certification of the agreement under section 234 of the Fair Work Act 2009.

McAlister & Burford Pty Ltd

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