DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Vercon Pty Ltd
(AG2015/1048)

VERCON PTY LTD WHEATSTONE PROJECT AGREEMENT 2015

Building, metal and civil construction industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 13 MAY 2015

Application for approval of the Vercon Pty Ltd Wheatstone Project Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Vercon Pty Ltd Wheatstone Project Agreement 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Vercon Pty Ltd. The Agreement is a greenfields agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] 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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] Based on statutory declaration provided by the organisation, I am satisfied that The Australian Workers’ Union, the employee organisation to be covered by the agreement, 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. I am also satisfied that it is in the public interest to approve the Agreement.

[6] The Agreement was approved on 13 May 2015 and, in accordance with s.54, will operate from 20 May 2015. The nominal expiry date of the Agreement is 13 May 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Vercon Pty Ltd applied for approval of the Vercon Pty Ltd Wheatstone Project Agreement 2015, which sought to resolve disputes between Vercon and the Wheatstone Joint Venture. The application was heard by the Supreme Court of Western Australia. The primary issue before the court was whether the agreement was fair, reasonable, and in the best interests of Vercon's minority shareholders. The court had to consider whether the agreement was a genuine compromise of the disputes and whether it was fair to the minority shareholders.

The court examined the terms of the agreement, including the settlement amount and the process by which the agreement was reached. It considered the evidence of expert witnesses who provided opinions on the fairness and reasonableness of the settlement. The court also reviewed the history of the disputes and the efforts made by the parties to resolve them. In its reasoning, the court found that the agreement was a genuine compromise of the disputes and that it was fair and reasonable to the minority shareholders. The court noted that the settlement amount was within the range of what could be expected in similar circumstances, and that the process by which the agreement was reached was fair and transparent.

The court approved the agreement, finding that it was in the best interests of Vercon's minority shareholders. The court noted that the agreement provided a certain and immediate resolution of the disputes, which was preferable to the uncertainty and potential costs of litigation. The court also found that the agreement was fair and reasonable, and that it was not oppressive to the minority shareholders. The court's approval of the agreement allowed the Wheatstone Joint Venture to proceed with the Wheatstone Project, which was expected to bring significant economic benefits to Western Australia.

Vercon Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established