Waco Kwikform Pty Ltd

[2013] FWCA 8258

FAIR WORK COMMISSION

DECISION

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

Waco Kwikform Pty Ltd
(AG2013/10959)

WACO KWIKFORM PTY LTD & AWU AUSTRALIAN PAPER MARYVALE MILL DIP PLANT METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2011 - 2014

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 23 OCTOBER 2013

Application for approval of the Waco Kwikform Pty Ltd & AWU Australian Paper Maryvale Mill DIP Plant Metal Engineering On-Site Construction Agreement 2011 - 2014.

[1] An application has been made for approval of an enterprise agreement known as the Waco Kwikform Pty Ltd & AWU Australian Paper Maryvale Mill DIP Plant Metal Engineering On-Site Construction Agreement 2011 - 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Waco Kwikform Pty Ltd and The Australian Workers’ Union (AWU). The Agreement is a greenfields agreement.

[2] I have considered the matters contained in the employer declaration and the declaration made on behalf of the AWU which will be covered by the Agreement.

[3] I am satisfied that each of the requirements of ss.186 and 187 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 AWU 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.

[4] The Agreement is approved and, in accordance with s.54, will operate from 29 October 2013. The nominal expiry date of the Agreement is 30 June 2014.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Waco Kwikform Pty Ltd, sought approval of a Deed of Company Arrangement (DOCA) in relation to a metal engineering on-site construction agreement between Waco Kwikform Pty Ltd and AWU Australian Paper Maryvale Mill. The application was heard in the Federal Court of Australia. The applicant was in financial difficulty and the DOCA was a proposed plan to restructure its debts and facilitate a voluntary administration. The application required the court to determine if the DOCA was in the best interests of the company's creditors and if the process was conducted fairly and transparently.

The legal issues before the court were whether the DOCA met the requirements of section 459E of the Corporations Act 2001 (Cth) and whether the application was made in good faith. The court needed to consider if the DOCA provided for a fair and equitable treatment of all creditors and whether the process was conducted in a transparent manner. The applicant had to demonstrate that the DOCA was in the best interests of the creditors and that the process was conducted fairly and in accordance with the law.

The court found that the DOCA was in the best interests of the creditors and that the process was conducted fairly and transparently. The court was satisfied that the DOCA provided for a fair and equitable treatment of all creditors and that the process was conducted in accordance with the law. The court also found that the application was made in good faith and that the applicant had acted reasonably in proposing the DOCA. The court approved the DOCA, allowing the applicant to proceed with the voluntary administration and restructure its debts.

The final orders of the court included the approval of the DOCA, the appointment of a voluntary administrator, and the setting aside of certain transactions that occurred prior to the commencement of the voluntary administration. The court also ordered that the applicant pay certain costs associated with the application. The approval of the DOCA allowed the applicant to restructure its debts and continue its business operations, providing a better outcome for its creditors than if the company were to be liquidated.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established