Construction, Forestry, Mining and Energy Union

[2013] FWCA 2508

FAIR WORK COMMISSION

DECISION

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

Construction, Forestry, Mining and Energy Union
(AG2013/6087)

LIANG CHEN FAMILY TRUST T/AS MULTIFIT TIMBER FLOORS PTY LTD AND THE CFMEU BUILDING AND CONSTRUCTION INDUSTRY ENTERPRISE AGREEMENT 2011-2015

Building, metal and civil construction industries
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 24 APRIL 2013

Application for approval of the Liang Chen Family Trust T/As Multifit Timber Floors Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015.

[1] An application has been made for approval of an enterprise agreement known as the Liang Chen Family Trust T/As Multifit Timber Floors Pty Ltd and the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by the Construction, Forestry, Mining and Energy Union (CFMEU). The agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The CFMEU 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), I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54, will operate from 1 May 2013. The nominal expiry date of the Agreement is 31 March 2015.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The Construction, Forestry, Mining and Energy Union (CFMEU) applied to the Fair Work Commission for approval of the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015. The applicant sought to have the agreement apply to the Liang Chen Family Trust trading as Multifit Timber Floors Pty Ltd. Multifit opposed the application, arguing that the agreement did not meet the requirements of section 230 of the Fair Work Act 2009 (Cth). The central issues before the Commission were whether the agreement was in the prescribed form, and whether it contained the necessary procedural fairness provisions.

The Commission considered the arguments presented by both parties and examined the agreement in question. It found that the agreement did not contain a specific clause addressing the procedural fairness rights of employees in the event of a redundancy. Despite this, the Commission held that the agreement did not need to be in a specific form to be valid, and that the absence of a particular clause did not necessarily render the agreement invalid. The Commission also noted that the agreement contained provisions for consultation and notice of redundancy, which it considered to be sufficient to ensure procedural fairness. Accordingly, the Commission approved the agreement as it applied to Multifit, finding that it met the requirements of the Act.

In light of the above, the Commission approved the application for the CFMEU Building and Construction Industry Enterprise Agreement 2011-2015 to apply to the Liang Chen Family Trust trading as Multifit Timber Floors Pty Ltd. The decision highlights the importance of ensuring that enterprise agreements contain adequate provisions for procedural fairness in the event of a redundancy, but also recognises that such provisions need not be in a specific form to be valid. The decision provides useful guidance for employers and unions when negotiating and approving enterprise agreements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established