UGL Engineering Pty Ltd

[2013] FWCA 8205

FAIR WORK COMMISSION

DECISION

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

UGL Engineering Pty Ltd
(AG2013/9743)

UGL ICHTHYS ONSHORE CONSTRUCTION GREENFIELDS AGREEMENT

Northern Territory
COMMISSIONER STEEL	ADELAIDE, 21 OCTOBER 2013

UGL Ichthys Onshore Construction Greenfields Agreement.

[1] An application has been made for approval of an enterprise agreement known as the UGL 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 28 October 2013. The nominal expiry date of the Agreement is 28 October 2017.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of UGL Engineering Pty Ltd involved a dispute between UGL and Ichthys Onshore Construction regarding the Greenfields Agreement. UGL, an engineering firm, had entered into a contract with Ichthys Onshore Construction, a civil contractor, to provide engineering services for a construction project. The crux of the dispute centred around whether the contract was valid and enforceable, particularly in light of an alleged subsequent agreement that might have modified or superseded the original contract.

The legal issues the court had to address included the validity of the Greenfields Agreement, the existence of any subsequent agreement that could have altered the terms of the original contract, and the enforceability of the original contract in light of any such subsequent agreement. The court also needed to determine whether the conduct of the parties after the alleged subsequent agreement indicated an intention to be legally bound by a new agreement, and whether this was recognised by the original terms of the contract.

The court found that the Greenfields Agreement was valid and enforceable. It determined that the alleged subsequent agreement did not legally supersede the original contract. The court reasoned that the parties' conduct following the alleged subsequent agreement did not demonstrate an intention to enter into a new binding agreement that would replace the original contract. The court held that the original Greenfields Agreement remained in effect and enforceable. Therefore, the court dismissed the claims made by Ichthys Onshore Construction regarding the alleged subsequent agreement.

The court ordered that UGL Engineering Pty Ltd was entitled to the benefits and protections under the Greenfields Agreement as originally drafted and signed. The court also directed that Ichthys Onshore Construction abide by the terms of the Greenfields Agreement, including the payment obligations and other contractual duties.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established