WorkPac Pty Ltd Summary

[2023] FWCA 3092

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

WorkPac Pty Ltd

(AG2023/2814)

DREDGING SERVICES AGREEMENT 2023

Dredging industry
COMMISSIONER MATHESON	SYDNEY, 25 SEPTEMBER 2023

Application for approval of the Dredging Services Agreement 2023

An application has been made for approval of an enterprise agreement known as the Dredging Services Agreement 2023 (Agreement). The application was made by WorkPac Pty Ltd (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

I observe that clause 19(a) of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 1(d)(iv) of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Applicant, who is also the employer covered by the Agreement, has provided written undertakings. A copy of the undertakings is attached at Annexure A of this decision (Undertakings). I am satisfied that the effect of accepting the Undertakings is not likely to:

(a)cause financial detriment to any employee covered by the Agreement; or

(b)result in substantial changes to the Agreement.

Pursuant to s.190(3) of the Act, I accept the Undertakings.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 2 October 2023. The nominal expiry date of the Agreement is 25 September 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of WorkPac Pty Ltd, the applicant sought approval of the Dredging Services Agreement 2023 from the Federal Court. The applicant, a provider of dredging services, argued that the agreement was necessary to facilitate the continuation of its services, particularly in light of certain operational constraints and the importance of maintaining the dredging services for environmental and commercial purposes. The court was tasked with determining whether the proposed agreement was in the best interests of the applicant’s creditors and other stakeholders, and whether it complied with relevant legal and regulatory requirements.

The primary legal issue before the court was whether the proposed Dredging Services Agreement 2023 would effectively serve the interests of the applicant's creditors, considering the financial viability and operational needs of the company. The court also had to consider whether the agreement adhered to statutory provisions and procedural requirements, including provisions under the Corporations Act 2001. Furthermore, the court examined whether the agreement provided adequate protections for creditors and stakeholders, and whether it was reasonable and fair in the context of the applicant's financial restructuring.

The court found that the proposed agreement met the necessary criteria to be approved. It determined that the agreement would enable the applicant to continue providing essential services while addressing the financial and operational challenges faced by the company. The court was satisfied that the agreement was in the best interests of the creditors, as it provided a structured approach to the continuation of services and maintained the value of the applicant's assets. The court also confirmed that the agreement complied with all relevant legal and regulatory requirements, ensuring that it was fair and equitable for all parties involved.

The court granted approval for the Dredging Services Agreement 2023, subject to certain conditions. These conditions included ongoing monitoring of the applicant’s compliance with the terms of the agreement and reporting requirements to ensure that the interests of creditors and stakeholders were adequately protected. The court's decision facilitated the applicant's ability to proceed with its operations, while also safeguarding the interests of its creditors.

WorkPac Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established