DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KLH Australia Pty Ltd T/A KLH Australia Pty Ltd
(AG2019/4752)

KLH SOUTH AUSTRALIA AGREEMENT 2019

Building, metal and civil construction industries
COMMISSIONER SIMPSON	BRISBANE, 4 FEBRUARY 2020

Application for approval of the KLH South Australia Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the KLH South Australia Agreement 2019 (the Agreement). The Applicant was made pursuant to s. 185 of the Fair Work Act 2009 (the Act). It has been made by KLH Australia Pty Ltd T/A KLH Australia Pty Ltd (the Applicant).

[2] The Agreement is a single enterprise agreement.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Appendix 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.

[4] Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

[5] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Appendix A

CaseChat Overview and Summary

The applicant, KLH Australia Pty Ltd trading as KLH Australia Pty Ltd, sought approval of an enterprise agreement from the Fair Work Commission. The agreement in question, the KLH South Australia Agreement 2019, was to be applied to employees of the applicant who were engaged under agreements of employment in South Australia. The dispute centred around the approval process of the agreement and its compliance with the Fair Work Act 2009. The Fair Work Commission was tasked with determining whether the agreement met the necessary criteria for approval, including the requirement that it be free from provisions that contravene the Act or are otherwise unacceptable.

The primary legal issues before the Commission were whether the agreement contained any provisions that were contrary to the Fair Work Act, whether the agreement was made in good faith, and whether the process through which the agreement was negotiated and finalised complied with the requirements of the Act. The Commission had to consider the nature of the bargaining process, the fairness of the terms, and the overall acceptability of the agreement in light of the statutory framework.

In reaching its decision, the Commission examined the evidence and submissions provided by the parties. It assessed the fairness of the terms of the agreement, the process by which it was negotiated, and whether there were any contraventions of the Act. The Commission found that the agreement was made in good faith, the process was fair, and the terms of the agreement were acceptable. It concluded that the agreement did not contravene any provisions of the Fair Work Act and was thus eligible for approval.

Accordingly, the Fair Work Commission approved the KLH South Australia Agreement 2019. This decision provides a clear precedent for similar agreements and reinforces the importance of adhering to the statutory requirements in the negotiation and approval of enterprise agreements.

KLH Australia Pty Ltd T/A KLH Australia Pty Ltd

DECISION

Appendix A

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established