Rusca Bros. Services Pty Ltd Summary

[2013] FWCA 8710

FAIR WORK COMMISSION

DECISION

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

Rusca Bros. Services Pty Ltd
(AG2013/9901)

RUSCA BROS. SERVICES PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 6 NOVEMBER 2013

Rusca Bros. Services Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Rusca Bros. Services 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 13 November 2013. The nominal expiry date of the Agreement is 13 November 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rusca Bros. Services Pty Ltd recently brought an action against Ichthys Onshore Construction and Greenfields, seeking a declaration that it was entitled to payment for work carried out under a contract for the construction of the Ichthys LNG facility. The case was heard in the Supreme Court of Western Australia. The dispute centred around the interpretation and application of the Greenfields Agreement, which governed the construction of the facility. The primary issue before the court was whether Rusca Bros. Services Pty Ltd was entitled to payment for additional work not explicitly detailed in the original contract, but which arose due to unforeseen site conditions and modifications requested by Ichthys Onshore Construction. The court had to determine whether the Greenfields Agreement provided a basis for claiming such additional work under its terms.

The court examined the terms of the Greenfields Agreement and considered the circumstances under which the additional work was performed. It explored the principles of contract law relevant to variations and amendments to the scope of work. The court concluded that the Greenfields Agreement did not explicitly entitle Rusca Bros. Services Pty Ltd to claim payment for additional work that was not initially specified in the contract. The court held that any such work would need to be formally varied under the agreement or agreed upon in writing by both parties. Rusca Bros. Services Pty Ltd's claim was therefore dismissed. The court's reasoning focused on the need for clear and unambiguous terms in the contract to support any claim for additional work and the absence of such terms in this case.

Rusca Bros. Services Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established