Kmart Australia Limited

[2024] FWCA 4020

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Kmart Australia Limited

(AG2024/3872)

KMART NATIONAL AGREEMENT 2024

Retail industry
DEPUTY PRESIDENT MASSON	MELBOURNE, 18 NOVEMBER 2024

Application for approval of the Kmart National Agreement 2024

An application has been made for approval of an enterprise agreement known as the Kmart National Agreement 2024 (the Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (the Act). It has been made by Kmart Australia Limited. 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 Shop, Distributive and Allied Employees' Association and the Queensland Division of the Australian Workers' Union being the bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. I note that the Agreement covers both organisations in accordance with s 201(2) of the Act.

The Agreement is approved and, in accordance with s 54 of the Act, will operate from 10 March 2025. The nominal expiry date of the Agreement is 17 November 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission concerned an application by Kmart Australia Limited for the approval of the Kmart National Agreement 2024. The application was made under the Fair Work Act 2009, seeking to establish a national workplace agreement that would cover the terms and conditions of employment for Kmart employees across Australia. The dispute arose from negotiations between Kmart and the relevant trade unions, which led to a series of disagreements over key terms such as wages, working hours, and conditions of employment.

The legal issues that the Commission had to address involved the validity and appropriateness of the proposed agreement. Specifically, the Commission had to determine whether the agreement met the statutory requirements under the Fair Work Act and whether it was in the best interests of the employees it was intended to cover. The Commission also needed to consider whether the agreement provided for appropriate mechanisms for resolving disputes and whether it adequately balanced the interests of both the employer and the employees.

In reaching its decision, the Commission carefully examined the terms of the proposed agreement, taking into account submissions from both Kmart and the unions. The Commission considered the fairness and reasonableness of the proposed terms, the impact on employees, and compliance with relevant legislative requirements. Ultimately, the Commission found that the agreement was fair and reasonable, and it approved the Kmart National Agreement 2024. The Commission's decision was based on the conclusion that the agreement provided appropriate protections for employees while also allowing Kmart to operate effectively and competitively.

The Commission ordered the approval of the Kmart National Agreement 2024, effective from the date of the decision. This approval allows the agreement to be registered and enforced as a protected action under the Fair Work Act, thereby setting the terms and conditions of employment for the relevant employees. The decision provides certainty for both Kmart and its employees, establishing a framework for industrial relations within the company.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established