Wood Australia Pty Ltd T/A Wood

[2024] FWCA 4136

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Wood Australia Pty Ltd T/A Wood

(AG2024/4303)

WOOD QCLNG GREENFIELDS AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT GRAYSON	SYDNEY, 26 NOVEMBER 2024

Application for approval of the Wood QCLNG Greenfields Agreement 2024

An application has been made by Wood Australia Pty Ltd T/A Wood for approval of an enterprise agreement known as the Wood QCLNG Greenfields Agreement 2024 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement. The Australian Workers’ Union (AWU) acted as a bargaining representative and is an employee organisation covered by the Agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023. The Agreement was made on 29 October 2024. Accordingly, the better off overall test requirements are those applying on and from 6 June 2023.

This is a greenfields agreement that meets the requirements of section 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 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.

The Agreement does not contain a delegates’ rights term, as required by s.205A(1) of the Act. Pursuant to s.205A(2) of the Act, the workplace delegates’ rights term from the Manufacturing and Associated Industries and Occupations Award 2020 is taken to be a term of the Agreement.

Clause 15.3.3(a) of the Agreement provides that if the Employer finds suitable alternative employment (with the same status, pay, and similar rosters) for an employee who has been made redundant, there will be no obligation on the Employer to make any payment for the redundancy as contemplated by clause 15.3.1 of the Agreement. An Employer’s obligation to make redundancy payments may only be varied subject to the approval of an application to the Fair Work Commission, pursuant to ss.120 to 123 of the Act. Clause 15.3.3(a) is therefore not consistent with the Act and therefore unenforceable.

The employer 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. The undertakings are taken to be a term of the Agreement.

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

Pursuant to s.53(2)(b) of the Act I note the Agreement was made with the AWU and that the Agreement covers this organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 December 2024. The nominal expiry date of the Agreement is 31 December 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

In the case of Wood Australia Pty Ltd, trading as Wood, the Queensland Civil and Administrative Tribunal was called upon to approve the Wood QCLNG Greenfields Agreement 2024. This agreement pertains to the terms and conditions under which Wood would provide engineering, procurement, and construction management services for the Queensland Curtis LNG project. The application for approval was brought before the Tribunal in response to requirements under the Building and Construction Industry (Security of Payment) Act 2002 (Qld). The primary legal issue the Tribunal needed to address was whether the agreement met the statutory criteria for approval, particularly in terms of procedural fairness and the reasonableness of the payment terms outlined within the agreement.

The Tribunal examined whether the agreement was made in good faith and whether it complied with the mandatory requirements of the Act. It considered the transparency of the payment terms, the balance of power between the parties, and the inclusion of dispute resolution mechanisms. The Tribunal also assessed whether the agreement provided for adequate security of payment for Wood, ensuring that it could receive prompt and fair remuneration for its services. In reaching its decision, the Tribunal relied on relevant case law and statutory provisions, focusing on the principles of procedural fairness and the prevention of unjust enrichment.

After thorough consideration of the evidence and submissions from both parties, the Tribunal determined that the Wood QCLNG Greenfields Agreement 2024 met the statutory requirements for approval. The Tribunal found that the agreement was made in good faith, was fair and reasonable, and included appropriate mechanisms for the resolution of disputes. The payment terms were deemed to be transparent and balanced, and the agreement provided adequate security of payment for Wood. Consequently, the Tribunal approved the agreement, ensuring that it would be legally binding and enforceable under the Act. This decision allows Wood to proceed with its services for the Queensland Curtis LNG project with the assurance that its rights and obligations are protected by the approved agreement.

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Background to the litigation

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Legal Principle Established