DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Hitachi Construction Machinery (Australia) Pty Ltd
(AG2017/25)

HITACHI CONSTRUCTION MACHINERY (AUSTRALIA) PTY LTD PARTS ENTERPRISE AGREEMENT 2016

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 10 FEBRUARY 2017

Application for approval of the Hitachi Construction Machinery (Australia) Pty Ltd Parts Enterprise Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Hitachi Construction Machinery (Australia) Pty Ltd Parts Enterprise Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Hitachi Construction Machinery (Australia) Pty Ltd. 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] Subject to the undertakings referred to above, 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[5] The Agreement was approved on 10 February 2017 and, in accordance with s.54, will operate from 17 February 2017. The nominal expiry date of the Agreement is 10 February 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Fair Work Commission (FWC) was presented with an application for the approval of the Hitachi Construction Machinery (Australia) Pty Ltd Parts Enterprise Agreement 2016. Hitachi Construction Machinery (Australia) Pty Ltd, the applicant, sought approval of the agreement which had been negotiated with the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU). The dispute centred on the terms of the enterprise agreement and its compliance with the Fair Work Act 2009.

The legal issues before the FWC included whether the agreement met the procedural requirements for enterprise agreements, including proper bargaining, and whether it complied with the substantive provisions of the Fair Work Act, such as the "better off overall test" (BOOT). The FWC also had to determine if the agreement contained terms that were fair and reasonable in all respects.

The FWC found that the agreement was the product of genuine and proper bargaining between the parties and was compliant with the procedural requirements set out in the Fair Work Act. The FWC concluded that the agreement satisfied the BOOT, as it provided for improvements in terms and conditions for the employees covered by the agreement. The FWC further found that the terms of the agreement were fair and reasonable, taking into account the need for a cooperative and productive workplace. The FWC approved the agreement, noting that it provided a balanced outcome for both parties and facilitated harmonious workplace relations.

In light of the FWC's findings, it approved the Hitachi Construction Machinery (Australia) Pty Ltd Parts Enterprise Agreement 2016, effective from the date of the approval. The agreement now binds the employer and the employees, and governs the terms and conditions of employment for the relevant workforce.

Hitachi Construction Machinery (Australia) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established