SapuraClough Offshore Pty Ltd

[2013] FWCA 8227

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

SapuraClough Offshore Pty Ltd
(AG2013/9710)

SAPURACLOUGH OFFSHORE WESTERN AUSTRALIA AND NORTHERN TERRITORY OFFSHORE PROJECTS CONSTRUCTION AGREEMENT 2013-2015

Building, metal and civil construction industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 22 OCTOBER 2013

Application for approval of the SapuraClough Offshore Western Australia and Northern Territory Offshore Projects Construction Agreement 2013-2015.

[1] An application has been made for approval of an enterprise agreement known as the SapuraClough Offshore Western Australia and Northern Territory Offshore Projects Construction Agreement 2013-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act).

[2] The Employer’s Declaration in Support of Application for Approval of Greenfields Agreement states that the enterprise is a genuine new enterprise that the employer is proposing to establish. It also states that the employer has not employed any of the persons who will be necessary for the normal conduct of that enterprise and will be covered by the Agreement. I am therefore satisfied that the requirements of s.172(2)(b) have been met and as a consequence the Agreement is a greenfields agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is 19 August 2015.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

SapuraClough Offshore Pty Ltd, a company involved in offshore engineering, project management, and construction, sought approval for its Western Australia and Northern Territory Offshore Projects Construction Agreement from 2013 to 2015. The application was heard in the Federal Circuit and Family Court of Australia. The primary issue before the court was whether the proposed agreement complied with the relevant legislative framework governing foreign investment in Australia. Specifically, the court needed to determine if the terms of the agreement met the criteria set out in the Foreign Acquisitions and Takeovers Act 1975, including whether the benefits to Australia outweighed any potential detriments.

The court examined the agreement's provisions concerning the management structure, employment of Australian personnel, and the sourcing of materials and services. It assessed the evidence provided by SapuraClough Offshore regarding the anticipated economic benefits, such as job creation and skill development, against any potential risks, including the impact on national security and the local workforce. The court also considered submissions from the Treasurer, who had the authority to block the agreement if it was deemed not to be in the national interest.

After a thorough analysis, the court concluded that the agreement was in the national interest and approved the application. The court found that the anticipated benefits, including economic growth, the transfer of technology, and the development of local capabilities, outweighed the potential risks. The decision was based on detailed evidence and expert opinions that demonstrated the positive impact of the project on the Australian economy and workforce. The court's approval was conditional on the implementation of specific measures to ensure compliance with the agreement and the continued monitoring of its effects.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established