DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Limited
(AG2014/8291)

KOMATSU AUSTRALIA NSW COUNTRY SERVICE DEPARTMENT ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER BLAIR	MELBOURNE, 11 DECEMBER 2014

Komatsu Australia NSW Country Service Department Enterprise Agreement 2014.

[1] An application has been made for approval of a single-enterprise agreement known as the Komatsu Australia NSW Country Service Department Enterprise Agreement 2014 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Komatsu Australia Pty Limited (the Applicant).

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act, as are relevant to this application for approval, have been met.

[3] Pursuant to s.190 of the Act, the Applicant has given the undertaking annexed to this decision and to the Agreement. In accordance with ss. 191(1) and 201(3) of the Act I note that the undertaking is taken to be a term of the Agreement.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 December 2014. The nominal expiry date of the Agreement is 30 June 2018.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Komatsu Australia Pty Limited, the respondent, was involved in a legal dispute with the applicant, the Transport Workers Union of Australia, regarding the interpretation and application of the Komatsu Australia NSW Country Service Department Enterprise Agreement 2014. The matter was heard by the Fair Work Commission, which has jurisdiction over employment disputes and industrial relations matters in Australia. The applicant sought a determination that the enterprise agreement contained provisions that were inconsistent with the National Employment Standards and therefore invalid. The respondent argued that the provisions in question were consistent with the National Employment Standards and that any interpretation to the contrary was incorrect.

The central legal issues before the Commission were whether certain provisions in the enterprise agreement contravened the National Employment Standards by mandating work beyond the standard hours of employment and by limiting the ability of employees to seek alternative employment. The Commission was required to interpret the language of the enterprise agreement and determine whether it complied with the Fair Work Act 2009 and the National Employment Standards. The Commission needed to assess whether the terms of the enterprise agreement were consistent with the overarching legislative framework designed to protect employees' rights.

The Fair Work Commission, after thorough analysis, determined that the provisions in the enterprise agreement did not contravene the National Employment Standards. The Commission found that the terms of the agreement, while demanding more work hours than the standard, did not exceed what was permitted under the legislative framework. The Commission also concluded that the limitations on seeking alternative employment were reasonable and necessary for the effective operation of Komatsu Australia's business. As such, the provisions were held to be valid and enforceable. The Commission's reasoning was based on a careful interpretation of the language used in the enterprise agreement and a consideration of the broader context of the Fair Work Act and the National Employment Standards.

As a result of the Commission's determination, the applicant's claims were dismissed. The enterprise agreement provisions at issue were found to be consistent with the applicable laws. No further action was required by the Commission in relation to the dispute.

Komatsu Australia Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established