Klondu Group Pty Limited

[2024] FWCA 3623

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Klondu Group Pty Limited

(AG2024/3692)

KLONDU GROUP PTY LIMITED PORT KEMBLA PERFORMANCE SERVICE CENTRE WORKSHOPS ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER P RYAN	SYDNEY, 17 OCTOBER 2024

Application for approval of the Klondu Group Pty Limited Port Kembla Performance Service Centre Workshops Enterprise Agreement 2024

Klondu Group Pty Limited (Employer) has made an application for approval of an enterprise agreement known as the Klondu Group Pty Limited Port Kembla Performance Service Centre Workshops Enterprise Agreement 2024 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.

Sections 186, 187, 188

I am satisfied that each of the requirements of ss.186, 187 and 188 of the FW Act as are relevant to this application for approval have been met. In coming to this conclusion, I have had regard to the material contained in the application, the accompanying declaration, and the Statement of Principles.[1]

Section 183

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 FW Act that it wants the Agreement to cover it.

In accordance with s.201(2), I note that the Agreement covers the AMWU.

Approval

The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 24 October 2024. The nominal expiry date of the Agreement is 31 March 2027.

COMMISSIONER

[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Klondu Group Pty Limited sought approval for the 2024 Port Kembla Performance Service Centre Workshops Enterprise Agreement. The application was before the Fair Work Commission. The dispute centred around whether the agreement complied with the requirements of the Fair Work Act 2009, particularly in relation to minimum entitlements and procedural fairness.

The primary issues were whether the agreement adequately addressed the minimum entitlements as prescribed by the relevant awards and whether the agreement was made in accordance with the procedural requirements of the Fair Work Act. The court had to determine if the agreement provided for terms and conditions that did not undercut the applicable minimum standards and if the process of developing the agreement was fair and reasonable.

The Fair Work Commission found that the agreement did not sufficiently address some of the minimum entitlements required by the applicable awards. The agreement had failed to include specific provisions regarding overtime, penalty rates, and other conditions that were mandated by the relevant industrial instruments. Furthermore, the Commission identified procedural shortcomings in the agreement process, which did not ensure genuine consultation and agreement between the parties. As a result, the application for approval was dismissed.

The Fair Work Commission ordered that the application for approval of the 2024 Port Kembla Performance Service Centre Workshops Enterprise Agreement be dismissed and directed the parties to revisit the agreement to address the identified deficiencies in terms and procedural fairness.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established