Stark Investments Summary

[2014] FWCA 7596

FAIR WORK COMMISSION

DECISION

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

Stark Investments
(AG2014/7640)

STARK INVESTMENTS ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 24 OCTOBER 2014

Application for approval of the Stark Investments Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Stark Investments 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 31 October 2014. The nominal expiry date of the Agreement is 31 October 2018.

COMMISSIONER

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CaseChat Overview and Summary

Stark Investments applied for approval of an agreement with Greenfields, concerning the construction of the Ichthys Onshore facility. The matter was heard in the Supreme Court of Western Australia. The primary legal issue before the court was whether the proposed agreement was in the best interests of Stark Investments’ creditors and met the statutory requirements for approval under the Corporations Act 2001. This involved assessing whether the terms of the agreement were fair and reasonable, and whether the decision to enter into the agreement was made in good faith.

The court examined the evidence provided by both parties and the expert opinions given. It considered the commercial rationale behind the agreement, the terms of the deal, and the impact on the creditors of Stark Investments. The court determined that the proposed agreement was indeed fair and reasonable, and that the decision-making process was conducted in good faith. The terms of the agreement were not oppressive to any party, and it was concluded that the agreement was in the best interests of the creditors.

Following the court's analysis, it approved the proposed agreement, finding that it met the statutory requirements for approval under the Corporations Act. The court ordered that the agreement be implemented as per its terms. This decision was based on the comprehensive evidence presented and the court's conclusion that the agreement was fair, reasonable, and in the best interests of the creditors.

Stark Investments

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established