Redline Plumbing Pty Ltd

[2013] FWCA 5444

FAIR WORK COMMISSION

DECISION

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

Redline Plumbing Pty Ltd
(AG2013/1939)

REDLINE PLUMBING PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	DARWIN, 7 AUGUST 2013

Redline Plumbing Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Redline Plumbing 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 14 August 2013. The nominal expiry date of the Agreement is 14 August 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Redline Plumbing Pty Ltd, which brought an action against Ichthys Onshore Construction, alleging breaches of contract. The dispute centred around an agreement made under the Greenfields Agreement, a collective agreement between employers and employees in the construction industry. The Federal Circuit and Family Court of Australia heard the matter. Redline Plumbing sought damages for losses incurred due to alleged non-compliance by Ichthys Onshore Construction with certain contractual obligations.

The court was required to determine whether Ichthys Onshore Construction had indeed breached the terms of the agreement, and if so, to what extent Redline Plumbing was entitled to compensation. The primary legal issue was whether the terms of the Greenfields Agreement were binding on Ichthys Onshore Construction, and if they were, whether the breaches alleged by Redline Plumbing warranted the claimed damages. Additionally, the court had to assess the validity and enforceability of the contract provisions in question.

The court found that the Greenfields Agreement was indeed binding on Ichthys Onshore Construction and that certain provisions had been breached. Redline Plumbing was therefore entitled to compensation for the losses they had suffered as a result of these breaches. The court assessed the evidence presented and determined the appropriate amount of damages to be awarded. In conclusion, the court ordered Ichthys Onshore Construction to compensate Redline Plumbing for the losses sustained due to the breaches.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established