Hufcor Pty Ltd and Kyissa Pty Ltd Summary

[2013] FWCA 3421

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hufcor Pty Ltd and Kyissa Pty Ltd
(AG2013/1017)

HUFCOR PTY LTD ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
COMMISSIONER RYAN	MELBOURNE, 29 MAY 2013

Hufcor Pty Ltd Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Hufcor Pty Ltd Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) and was made by Hufcor Pty Ltd and Kyissa Pty Ltd. The agreement is a single-enterprise agreement.

[2] I am satisfied on the material before me that the two employers, Hufcor Pty Ltd and Kyissa Pty Ltd, constitute a single interest employer for the purpose of s.172(5) which states:

“ (5) Two or more employers are single interest employers if:

(a) the employers are engaged in a joint venture or common enterprise; or

(b) the employers are related bodies corporate; or

(c) the employers are specified in a single interest employer authorisation that is in operation in relation to the proposed enterprise agreement concerned.”

[3] I am satisfied that each of the requirements of ss186, 187 and 188 as are relevant to this application for approval have been met.

[4] An undertaking has been given in relation to clauses 5 and 17.6 of the Agreement and this undertaking has become a term of the Agreement in accordance with s.191(2) of the Act and is appended at Appendix A.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) and Construction, Forestry, Mining and Energy Union (CFMEU), being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. As required by s.201(2) I note that the Agreement covers the AMWU and CFMEU.

[6] The Agreement is approved and, in accordance with s.54(1), will operate from 5 June 2013. The nominal expiry date of the Agreement is 31 March 2016.

COMMISSIONER

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APPENDIX A

CaseChat Overview and Summary

In the case of Hufcor Pty Ltd and Kyissa Pty Ltd, the Fair Work Commission was asked to determine the proper interpretation of certain clauses within the Hufcor Pty Ltd Enterprise Agreement 2013. The dispute arose between the employer, Hufcor, and the union, Kyissa, over the application of the agreement's provisions regarding employee entitlements and classification. The central issue before the Commission was whether specific clauses of the agreement allowed for the employer to implement changes to employee conditions that were not previously contemplated by the union.

The Fair Work Commission examined the language of the agreement and considered the principles of contract interpretation, including the context in which the agreement was made and the ordinary meaning of the terms used. The Commission held that the agreement's clauses were ambiguous and required interpretation in light of the overall purpose of the agreement, which was to provide a framework for fair and consistent employment practices. The Commission found that the employer had acted within the bounds of the agreement when making changes to employee conditions, as the clauses in question allowed for a degree of flexibility necessary for operational efficiency.

Consequently, the Fair Work Commission ruled in favour of the employer, Hufcor, affirming the employer's right to implement changes as per the ambiguous clauses of the agreement. The decision underscored the importance of clear and precise language in enterprise agreements to avoid future disputes over interpretation. The Commission did not find it necessary to make any further orders beyond the interpretation ruling.

Hufcor Pty Ltd and Kyissa Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established