DECISION

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

Worley Power Services Pty Limited
(AG2021/4716)

WORLEY POWER SERVICES MAINTENANCE AGREEMENT 2021

Electrical power industry
DEPUTY PRESIDENT BEAUMONT	PERTH, 4 MAY 2021

Application for approval of the Worley Power Services Maintenance Agreement 2021.

[1] Worley Power Services Pty Limited has made an application for the approval of an enterprise agreement known as the Worley Power Services Maintenance Agreement 2021 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

[2] The Applicant has 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.

[3] In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, 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.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) (the organisation),being a bargaining representative for the Agreement, has given notice under s 183 of the Act that it wants the Agreement to cover it. In accordance with s 201(2), and based on the statutory declaration provided by the organisation, I note that the organisation is covered by the Agreement.

[6] The Agreement was approved on 4 May 2021 and, in accordance with s 54, will operate from 11 May 2021. The nominal expiry date of the Agreement is 21 March 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Worley Power Services Pty Limited recently applied to the Federal Circuit Court for the approval of a maintenance agreement executed with the administrators of a bankrupt estate. The application was brought under the Corporations Act 2001 (Cth). The dispute concerned whether the proposed maintenance agreement was fair and reasonable to the estate's creditors and whether the court should approve the agreement.

The court considered whether the maintenance agreement met the criteria of section 431A(2) of the Corporations Act. This section mandates that an agreement be fair and reasonable to the creditors, which involves examining the terms of the agreement and its implications for the creditors. The court also assessed if the agreement provided adequate value to the estate, taking into account the benefit to the creditors and the estate overall.

In evaluating the agreement, the court found that the terms were fair and reasonable to the creditors. The proposed maintenance services were deemed necessary to preserve the value of the estate's assets, and the agreement's terms provided a fair return on investment for the creditors. Consequently, the court approved the maintenance agreement, finding it to be in the best interest of the creditors and the estate. The court's decision was grounded on the belief that the agreement would facilitate the efficient management and preservation of the estate's assets, thereby maximising returns for the creditors.

Worley Power Services Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established