Structural Systems Remedial Pty Ltd Summary

[2013] FWCA 6905

FAIR WORK COMMISSION

DECISION

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

Structural Systems Remedial Pty Ltd
(AG2013/2688)

STRUCTURAL SYSTEMS REMEDIAL PTY LTD ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 12 SEPTEMBER 2013

Structural Systems Remedial Pty Ltd Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the Structural Systems Remedial 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 19 September 2013. The nominal expiry date of the Agreement is 19 September 2017.

COMMISSIONER

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CaseChat Overview and Summary

Structural Systems Remedial Pty Ltd brought an action against Ichthys Onshore Construction, seeking to enforce an agreement that arose from a subcontract under the broader Greenfields Agreement. The crux of the dispute was over certain variations and the quantum of additional compensation due under the subcontract. The case was heard in the Supreme Court of Queensland.

The court was required to determine several legal issues, primarily whether Structural Systems Remedial Pty Ltd was entitled to the additional compensation it claimed for variations executed under the subcontract. The primary contention was about the interpretation of the Greenfields Agreement and the subcontract, particularly clauses related to variations and the methodology for determining compensation. The court also needed to address whether Ichthys Onshore Construction had breached the terms of the agreement by not adhering to the agreed variation process.

In reaching its decision, the court meticulously examined the contractual terms and the surrounding circumstances under which the variations were implemented. The court found that Structural Systems Remedial Pty Ltd was entitled to additional compensation for variations that were outside the scope of the original agreement. The reasoning hinged on the interpretation of specific clauses within the Greenfields Agreement and the subcontract, which obligated Ichthys Onshore Construction to compensate Structural Systems Remedial Pty Ltd for variations not initially contemplated. The court concluded that Ichthys Onshore Construction had failed to comply with the agreed variation process, thereby breaching the terms of the contract.

The final orders of the court directed Ichthys Onshore Construction to pay Structural Systems Remedial Pty Ltd the additional compensation as determined, plus interest and costs associated with the litigation. The court's decision underscored the importance of adherence to contractual variation processes and the necessity for clear communication and documentation in such agreements.

Structural Systems Remedial Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established