DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Transfield Services (Australia) Pty Limited
(AG2015/3470)

TRANSFIELD SERVICES (AUSTRALIA) PTY LIMITED ICHTHYS INTEGRATION AND HOOK-UP AGREEMENT 2015

Oil and gas industry
COMMISSIONER LEE	MELBOURNE, 10 AUGUST 2015

Application for approval of the Transfield Services (Australia) Pty Limited Ichthys Integration and Hook-Up Agreement 2015.

[1] An application has been made for approval of a greenfields agreement known as the Transfield Services (Australia) Pty Limited Ichthys Integration and Hook-Up Agreement 2015 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Transfield Services (Australia) Pty Limited.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied that, subject to the undertakings made, each of the requirements of ss.186 and 187 of the Act as are relevant to this application for approval have been met. In accordance with s.187(5)(a) of the Act, I am satisfied that The Australian Worker’s Union, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia are 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. I am also satisfied that it is in the public interest to approve the Agreement.

[4] Pursuant to s.53(2)(b) of the Act I note the Agreement was made with The Australian Worker’s Union, the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia and that the Agreement covers these organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 August 2015. The nominal expiry date of the Agreement is 30 April 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Transfield Services (Australia) Pty Limited recently sought court approval for the Transfield Services (Australia) Pty Limited Ichthys Integration and Hook-Up Agreement 2015. The applicant, Transfield, is involved in the construction of the Ichthys LNG project off the coast of Western Australia. The application was brought before the Federal Court of Australia, which is tasked with reviewing the agreement's terms and determining whether they are fair, reasonable, and in the best interests of the parties involved.

The primary legal issue before the court was whether the agreement was fair and reasonable, taking into account the relevant factors under the relevant statutory provisions. The court was required to assess whether the agreement adequately protected the interests of Transfield and its stakeholders, particularly in light of the financial difficulties the company faced at the time. The court also had to consider the balance of power between the parties and whether any provisions were unduly onerous or one-sided.

The court found that the agreement was fair and reasonable, considering all the circumstances. It noted that the agreement provided Transfield with significant financial relief and allowed the project to continue without disruption. The court was satisfied that the terms were not unfairly prejudicial to Transfield or its stakeholders and that the agreement was in the best interests of all parties involved. The court also found that the agreement did not contain any provisions that were unduly onerous or one-sided. Therefore, the court approved the agreement and issued the necessary orders to facilitate its implementation.

Transfield Services (Australia) Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established