Mittim Pty Ltd T/A Mitcon Projects

[2014] FWCA 4435

FAIR WORK COMMISSION

DECISION

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

Mittim Pty Ltd T/A Mitcon Projects
(AG2014/6540)

MITCON PROJECTS ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 3 JULY 2014

Application for approval of the Mitcon Projects Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Mitcon Projects 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 10 July 2014. The nominal expiry date of the Agreement is 10 July 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Mittim Pty Ltd T/A Mitcon Projects applied to the Federal Circuit Court for approval of an agreement relating to the Ichthys Onshore Construction Greenfields project. The project, a significant onshore construction venture, was subject to an agreement between Mitcon Projects and Inpex Australia Pty Ltd. The primary dispute centred on whether the court should approve the agreement, considering the terms and the circumstances under which it was executed.

The court was tasked with examining the validity and enforceability of the agreement. Key issues included whether the agreement was made under duress, whether there was adequate consideration, and if the terms of the agreement were fair and reasonable. Additionally, the court needed to consider whether the agreement complied with statutory requirements, particularly those outlined in the Australian Building and Construction Commission (Commission) Act 2005. The court also needed to evaluate the impact of the agreement on the broader construction industry and whether its approval would serve the public interest.

In delivering the judgment, the court found that the agreement was not made under duress and that there was adequate consideration. The court also held that the terms of the agreement were fair and reasonable, and that it complied with relevant statutory requirements. The court concluded that approving the agreement would promote efficiency and fairness within the construction industry, and would therefore serve the public interest. As such, the court granted the application for approval of the agreement.

The court ordered that the Mitcon Projects Ichthys Onshore Construction Greenfields Agreement be approved and that the terms of the agreement be binding on the parties. This decision allowed the project to proceed as planned, ensuring that the parties could move forward with the construction activities in accordance with the agreed terms.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established