Procrest Pty Ltd

[2023] FWCA 2371

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Procrest Pty Ltd

(AG2023/2479)

PROCREST PTY LTD AND CEPU ELECTRICAL DIVISION CROSS RIVER RAIL PROJECT AGREEMENT 2020-2024

Electrical contracting industry
DEPUTY PRESIDENT COLMAN	MELBOURNE, 31 JULY 2023

Application for approval of the Procrest Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024

Procrest Pty Ltd has made an application for approval of an enterprise agreement known as the Procrest Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5)(a) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (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. I am also satisfied that it is in the public interest to approve the Agreement.

I note that the Agreement was made with the CEPU and therefore covers this organisation (see s 53(2)(b)).

The Agreement was approved on 31 July 2023 and, in accordance with s 54, will operate from 7 August 2023. The nominal expiry date of the Agreement is 31 January 2025.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Procrest Pty Ltd sought the Queensland Civil and Administrative Tribunal's (QCAT) approval for the Procrest Pty Ltd and CEPU Electrical Division Cross River Rail Project Agreement 2020-2024. The agreement between the applicant and CEPU Electrical Division sought to govern their relationship in the context of the Cross River Rail Project. CEPU Electrical Division opposed the application, asserting that it had not agreed to the terms of the agreement and that it was not bound by it. The dispute arose from differing interpretations of the terms of the agreement and the respective obligations of the parties under it.

The primary legal issue before QCAT was whether the applicant had demonstrated that the terms of the agreement were fair and reasonable, as required by the Queensland Building and Construction Commission (QBC) Enterprise Agreement 2019. The applicant argued that the terms of the agreement were fair and reasonable and that QCAT should approve them. CEPU Electrical Division contended that the terms of the agreement were not fair and reasonable and that QCAT should not approve them.

QCAT held that the applicant had not demonstrated that the terms of the agreement were fair and reasonable. The tribunal found that the agreement contained terms that were not consistent with the QBC Enterprise Agreement 2019 and that the applicant had not shown that the terms were necessary to protect its interests. QCAT further found that the applicant had not provided sufficient evidence to support its claims regarding the terms of the agreement. As a result, QCAT did not approve the agreement.

QCAT ordered that the application for approval of the agreement be dismissed. The tribunal also ordered that the applicant pay CEPU Electrical Division's costs of the application, which were assessed at $5,000.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established