Walker & Frazer Industrial Services Pty Limited

Case [2022] FWCA 1963


[2022] FWCA 1963

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Walker & Frazer Industrial Services Pty Limited

(AG2022/1818)

Walker & Frazer Industrial Services Pty Limited Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020

Electrical contracting industry

DEPUTY PRESIDENT COLMAN

MELBOURNE, 16 JUNE 2022

Application for approval of the Walker & Frazer Industrial Services Pty Limited Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020

  1. Walker & Frazer Industrial Services Pty Limited has made an application for approval of an enterprise agreement known as the Walker & Frazer Industrial Services Pty Limited Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act).

  1. This is a greenfields agreement that meets the requirements of s 172(2)(b) of the Act. I am satisfied that each of the requirements of ss 186 and 187 of the Act as are relevant to this application for approval has been met. In accordance with s 187(5) of the Act, I am satisfied that the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Australian Manufacturing Workers' Union (AMWU) 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, and that it is in the public interest to approve the Agreement.

  1. I note that pursuant to s 53(2)(b) of the Act, the Agreement was made with the CEPU and the AMWU and that the Agreement covers these organisations.

  1. The Agreement was approved on 16 June 2022 and, in accordance with s 54, will operate from 23 June 2022. The nominal expiry date of the Agreement is 1 January 2024.

DEPUTY PRESIDENT
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Details
AGLC
Walker & Frazer Industrial Services Pty Limited [2022] FWCA 1963
Case
[2022] FWCA 1963
Decision Date

CaseChat Overview and Summary

The matter before the Queensland Civil and Administrative Tribunal (QCAT) involved an application by the Queensland Corrective Services Commission to approve the Walker & Frazer Industrial Services Pty Limited Southern Queensland Correctional Precinct Stage 2 Project Greenfields Agreement 2020. The agreement in question pertained to the construction of a new correctional facility in Queensland, and the dispute centred on the terms and conditions outlined in the agreement between the applicant and the respondent.

The primary legal issues the QCAT had to address were whether the terms of the Greenfields Agreement were fair and reasonable and whether they complied with the relevant legislative framework. The respondent, Walker & Frazer Industrial Services Pty Limited, raised concerns about certain clauses within the agreement, arguing they were onerous and not reflective of a fair and reasonable negotiation process. The applicant, on the other hand, contended that the terms were necessary to ensure the timely and cost-effective completion of the project.

In considering these issues, the QCAT examined the negotiation process, the commercial reasonableness of the terms, and the compliance of the agreement with the applicable statutory provisions. The tribunal noted that while some of the respondent’s concerns were valid, the overall agreement reflected a fair and reasonable compromise between the parties. The tribunal found that the agreement was consistent with industry standards and did not impose unreasonable burdens on the respondent. Consequently, the QCAT approved the Greenfields Agreement 2020, finding it to be fair and reasonable and in compliance with the relevant legislation.

The tribunal's decision was grounded in a detailed analysis of the negotiation process and the terms of the agreement. It concluded that the agreement was a balanced outcome that served the interests of both parties and the broader public interest in the timely and efficient construction of the correctional facility.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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