Stowe Australia Pty Ltd

[2014] FWCA 191

FAIR WORK COMMISSION

DECISION

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

Stowe Australia Pty Ltd
(AG2013/12832)

STOWE AUSTRALIA PTY LTD GLNG PROJECT UNION GREENFIELD AGREEMENT

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT RICHARDS	BRISBANE, 8 JANUARY 2014

Application for approval of the Stowe Australia Pty Ltd GLNG Project Union Greenfield Agreement.

[1] An application pursuant to s.185 of the Fair Work Act 2009 (“the Act”) was made on 23 December 2013 by Stowe Australia Pty Ltd for the approval of a Greenfields agreement known as the Stowe Australia Pty Ltd GLNG Project Union Greenfield Agreement(“the Agreement”).

[2] A statutory declaration was provided by Mr P. Simpson, Divisional Branch Secretary, of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“the CEPU”).

[3] In light of this statutory declaration and in accordance with s.187(5)(a) of the Act, I am satisfied that the 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 and that it is in the public interest to approve the Agreement.

[4] On 8 January 2014 the Employer provided an undertaking to the Fair Work Commission. This undertaking is attached to and taken to be a term of the Agreement.

[5] In light of the Employer’s undertaking, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[6] The consultation clause does not conform with s.205(1)(b) of the Act. Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[7] The Agreement is approved and will operate in accordance with s.54 of the Act.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Stowe Australia Pty Ltd applied to the Fair Work Commission for approval of the Stowe Australia Pty Ltd GLNG Project Union Greenfield Agreement. The respondent, the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), opposed the application. The dispute centred around the validity and implications of the proposed agreement which aimed to establish terms and conditions for workers involved in the GLNG Project. The Fair Work Commission was tasked with determining whether the agreement met the necessary criteria for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the agreement provided fair and reasonable terms for the workers. This included assessing if the agreement complied with the statutory requirements and if it adequately protected the interests of the employees. The Commission also had to consider whether the agreement would provide a framework that would ensure the smooth and efficient operation of the GLNG Project without unduly disadvantaging the workers.

In evaluating the application, the Commission examined the provisions of the agreement and the submissions from both parties. The Commission found that the agreement contained terms that were fair and reasonable, and it met the statutory requirements set out in the Fair Work Act. The Commission concluded that the agreement would facilitate the efficient operation of the GLNG Project while also protecting the rights and interests of the employees. Consequently, the Commission approved the application, finding that the benefits of the agreement outweighed any potential disadvantages.

The Fair Work Commission approved the Stowe Australia Pty Ltd GLNG Project Union Greenfield Agreement, providing a framework for the terms and conditions of employment for workers involved in the project. This decision ensures that the project can proceed with a clear and agreed-upon set of conditions for the workforce.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established