Hitachi Construction Machinery (Australia) Pty Ltd Summary

[2022] FWCA 4381

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Hitachi Construction Machinery (Australia) Pty Ltd

(AG2022/4954)

Hitachi Construction Machinery (Australia) Pty Ltd Service Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER JOHNS	MELBOURNE, 13 DECEMBER 2022

Application for approval of the Hitachi Construction Machinery (Australia) Pty Ltd Service Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Hitachi Construction Machinery (Australia) Pty Ltd Service Enterprise Agreement 2022 (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.

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.

The Construction, Forestry, Maritime, Mining and Energy Union and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 December 2022. The nominal expiry date of the Agreement is 17 September 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of Hitachi Construction Machinery (Australia) Pty Ltd, the Fair Work Commission was presented with an application for the approval of a new service enterprise agreement. This agreement, proposed by Hitachi Construction Machinery (Australia) Pty Ltd, aimed to regulate the terms and conditions of employment for its employees. The Commission's task was to determine whether the agreement met the legal requirements for approval under the Fair Work Act 2009. This involved assessing the agreement's compliance with various provisions of the Act, including the mandate for good faith bargaining and the absence of provisions that could be considered contrary to public policy.

The central legal issue before the Commission was whether the proposed agreement complied with the statutory requirements for approval. This encompassed evaluating the agreement's provisions for minimum wages and conditions, ensuring it did not unfairly disadvantage any group of employees, and verifying that it did not contain any provisions that were contrary to public policy. Additionally, the Commission had to consider whether the agreement was made in good faith, in line with the obligations under the Fair Work Act.

In reaching its decision, the Commission meticulously examined the proposed agreement, confirming that it adhered to all legislative criteria. The Commission highlighted the importance of good faith bargaining and noted that the agreement did not include any provisions that were detrimental to employees or contravened public policy. The Commission was satisfied that the agreement was made in good faith and met all statutory requirements. Consequently, the Commission approved the Hitachi Construction Machinery (Australia) Pty Ltd Service Enterprise Agreement 2022, marking the formal establishment of the new terms and conditions for the employees of the company.

Hitachi Construction Machinery (Australia) Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established