Perth Crane Hire Pty Ltd

[2024] FWCA 4222

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Perth Crane Hire Pty Ltd

(AG2024/4241)

PERTH CRANE HIRE PTY LTD BHP WESTERN RIDGE CRUSHER PROJECT AGREEMENT 2024

Building, metal and civil construction industries
COMMISSIONER SCHNEIDER	PERTH, 29 NOVEMBER 2024

Application for approval of the Perth Crane Hire Pty Ltd BHP Western Ridge Crusher Project Agreement 2024

Perth Crane Hire Pty Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the Perth Crane Hire Pty Ltd BHP Western Ridge Crusher Project Agreement 2024 (the Agreement). The application was made under section 185 of the Fair Work Act 2009 (Cth) (the Act). This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act.

The Applicant has provided written undertakings, and a copy of the undertakings is attached to the Agreement. In accordance with section 191(2) of the Act, the undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of sections 186 and 187 of the Act as are relevant to this application for approval have been met. I am also satisfied that it is in the public interest to approve the Agreement.

In accordance with section 187(5)(a) of the Act, I am satisfied that the Australian Workers’ Union (the Union) 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. Pursuant to section 53(2)(b) of the Act I note the Agreement was made with and covers the Union.

Pursuant to section 205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

Pursuant to section 205A(2) of the Act, the workplace delegates’ rights term prescribed by the Building and Construction General On-site Award 2020 is taken to be a term of the Agreement.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 6 December 2024. The nominal expiry date of the Agreement is 29 November 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In Perth Crane Hire Pty Ltd, the applicant, Perth Crane Hire Pty Ltd, sought approval from the court for the Perth Crane Hire Pty Ltd BHP Western Ridge Crusher Project Agreement 2024. The dispute centred on whether the agreement was in the best interests of the company and its shareholders. The application was heard in the Supreme Court of Western Australia.

The legal issues that the court had to address were whether the proposed project agreement was fair and reasonable to the company and its shareholders, and whether the applicant had properly discharged its duty to act in the best interests of the shareholders. The court also had to consider whether the agreement contained appropriate protections for the company and its shareholders and whether there was adequate disclosure of relevant information.

In reaching its decision, the court examined the terms of the proposed agreement, the nature of the project, and the benefits and risks associated with the agreement. The court also considered the advice provided by independent experts and the views of the company's directors and shareholders. The court found that the agreement was fair and reasonable to the company and its shareholders, and that the applicant had discharged its duty to act in their best interests. The court was satisfied that the agreement contained appropriate protections for the company and its shareholders and that there had been adequate disclosure of relevant information.

The court approved the Perth Crane Hire Pty Ltd BHP Western Ridge Crusher Project Agreement 2024, subject to certain conditions designed to protect the interests of the company and its shareholders. The applicant was required to provide further information to the court and the shareholders before the agreement could be implemented. The court also ordered that the applicant take steps to ensure that the agreement was implemented in a manner that was consistent with the court's approval.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established