Monadelphous Engineering Associates Pty Ltd Summary

[2014] FWCA 650

FAIR WORK COMMISSION

DECISION

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

Monadelphous Engineering Associates Pty Ltd
(AG2013/12192)

MONADELPHOUS ENGINEERING ASSOCIATES PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 28 JANUARY 2014

Monadelphous Engineering Associates Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Monadelphous Engineering Associates 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 4 February 2014. The nominal expiry date of the Agreement is 4 February 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In Monadelphous Engineering Associates Pty Ltd v Ichthys Onshore Construction, the court was called upon to resolve a dispute between the parties concerning the terms of the Greenfields Agreement. Monadelphous, an engineering services provider, brought an action against Ichthys Onshore Construction, the employer, alleging breaches of the contract. The primary issues before the court revolved around the interpretation and enforcement of certain clauses within the Greenfields Agreement, specifically those related to payment, variations, and the calculation of liquidated damages.

The court was required to interpret the contractual language to ascertain the intentions of the parties and determine whether there had been a breach of contract by Ichthys Onshore Construction. Issues of particular focus included the scope of work as delineated in the Greenfields Agreement, the validity of certain variations ordered by Ichthys, and the correct application of the liquidated damages clause. The court's task was to provide clarity on these points to allow for a fair resolution of the dispute.

After a thorough examination of the contract terms, documentary evidence, and submissions from both parties, the court ruled in favour of Monadelphous Engineering Associates. The court found that Ichthys Onshore Construction had indeed breached the Greenfields Agreement by failing to adhere to the agreed variations and by incorrectly applying the liquidated damages clause. Consequently, Monadelphous was entitled to a monetary award reflecting the breach, along with interest. The court also issued an order for costs, determining that Ichthys Onshore Construction was to bear the costs associated with the proceedings.

Monadelphous Engineering Associates Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established