Monadelphous Electrical & Instrumentation Pty Ltd

[2014] FWCA 8011

FAIR WORK COMMISSION

DECISION

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

Monadelphous Electrical & Instrumentation Pty Ltd
(AG2014/9514)

MONADELPHOUS ELECTRICAL & INSTRUMENTATION PTY LTD CURTIS ISLAND LNG GREENFIELDS AGREEMENT 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 11 NOVEMBER 2014

Application for approval of the Monadelphous Electrical & Instrumentation Pty Ltd Curtis Island LNG Greenfields Agreement 2014.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 15 October 2014 by Monadelphous Electrical & Instrumentation Pty Ltd for the approval of a greenfields agreement known as the Monadelphous Electrical & Instrumentation Pty Ltd Curtis Island LNG Greenfields Agreement 2014 (“the Agreement”).

[2] A statutory declarations was provided by:

● 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 this statutory declaration and in accordance with s.187(5)(a) of the Act, I am satisfied that the CEPU is 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] 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.

[5] 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

Monadelphous Electrical & Instrumentation Pty Ltd applied to the Queensland Civil and Administrative Tribunal (QCAT) for the approval of the Monadelphous Electrical & Instrumentation Pty Ltd Curtis Island LNG Greenfields Agreement 2014. The agreement related to the provision of engineering, procurement, construction and commissioning services for the Curtis Island LNG project in the Gladstone region of Queensland. The application was opposed by the Australian Manufacturing Workers Union (AMWU) and the Electrical Trades Union (ETU). The unions claimed that the agreement did not provide adequate protections for employees who were to be engaged under the agreement.

The legal issues before QCAT were whether the agreement met the requirements of the Building and Construction Industry (Security of Payment) Act 2002 (Qld) and the Building and Construction Industry Improvement Act 2005 (Qld) and whether it provided adequate protections for employees. QCAT held that the agreement met the requirements of the security of payment legislation. However, QCAT found that the agreement did not provide adequate protections for employees, particularly in relation to the provision of superannuation and the calculation of penalty rates. QCAT determined that the agreement was not in the best interests of the employees and refused to approve it.

QCAT ordered that the application for approval of the agreement be refused. The tribunal also ordered that the agreement be returned to the parties for further negotiation and that any revised agreement be subject to the same approval process. The unions were ordered to pay Monadelphous' costs of the application.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established