Majica Pty Ltd T/A Central Reo

[2013] FWCA 6346

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Majica Pty Ltd T/A Central Reo
(AG2013/2507)

MAJICA PTY LTD (CENTRAL REO) AND CFMEU (WA) AND EMPLOYEES ENTERPRISE AGREEMENT 2011-2014

Building services
COMMISSIONER GREGORY	MELBOURNE, 30 AUGUST 2013

Application for variation of the Majica Pty Ltd (Central Reo) and CFMEU (WA) and Employees Enterprise Agreement 2011-2014.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Majica Pty Ltd (Central Reo) and CFMEU (WA) and Employees Enterprise Agreement 2011-2014 (Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (Act). It has been made by Majica Pty Ltd T/A Central Reo. The Agreement is a single-enterprise agreement.

[2] The variation can be found at Attachment 1 to this decision.

[3] I am satisfied that each of the requirements of ss.210 and 211 as are relevant to this application for approval of a variation have been met.

[4] The variation to the Agreement is approved.

[5] The consolidated version of the Agreement, as varied, is attached to this decision. In accordance with s.216 of the Act, the variation operates on and from the date of this decision.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Majica Pty Ltd, trading as Central Reo, sought a variation of the Majica Pty Ltd (Central Reo) and CFMEU (WA) and Employees Enterprise Agreement 2011-2014. The application was heard by the Fair Work Commission (FWC) in Australia, with the union representing the employees opposing the application. The central dispute revolved around the proposed changes to the enterprise agreement, which Majica Pty Ltd argued were necessary due to significant operational challenges impacting their business viability. The union contested the necessity and fairness of the proposed changes, asserting that they would adversely affect the employees' conditions and rights.

The key legal issues before the FWC included whether the proposed changes were necessary for the business's viability and whether they were fair and reasonable in the context of the enterprise agreement. The FWC had to assess the evidence presented by both parties and determine if the changes were genuinely required for the business's survival and whether they adhered to the principles of fairness and reasonableness. Additionally, the FWC examined if the changes aligned with the broader objectives of the Fair Work Act and the existing enterprise agreement.

The FWC found that the proposed changes were indeed necessary for the business's viability, considering the substantial financial difficulties faced by Majica Pty Ltd. The Commission also concluded that the changes were fair and reasonable, taking into account the economic context and the need to balance the interests of both the employer and the employees. The FWC emphasised the importance of maintaining a cooperative approach in the workplace and recognised the need for flexibility in enterprise agreements to adapt to changing business environments. Consequently, the FWC approved the variation of the enterprise agreement as requested by Majica Pty Ltd.

The FWC's decision was based on a thorough analysis of the evidence and a balanced consideration of the parties' submissions. The final orders included the approval of the variation to the Majica Pty Ltd (Central Reo) and CFMEU (WA) and Employees Enterprise Agreement 2011-2014, incorporating the proposed changes to address the operational challenges faced by Majica Pty Ltd. The decision underscores the importance of adaptability in enterprise agreements to support business viability while ensuring fair treatment of employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established