Komatsu Australia Pty Limited; Komatsu Marketing Support Australia Pty Limited

[2014] FWCA 7879

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a multi-enterprise agreement

Komatsu Australia Pty Limited; Komatsu Marketing Support Australia Pty Limited
(AG2014/7984)

KOMATSU MACKAY SERVICE & ASSEMBLY DEPARTMENTS ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
COMMISSIONER BLAIR	MELBOURNE, 6 NOVEMBER 2014

Application for approval of the Komatsu Mackay Service & Assembly Departments Enterprise Agreement 2014.

[1] An application has been made for approval of a single-enterprise agreement known as the Komatsu Mackay Service & Assembly Departments Enterprise Agreement 2014 (the Agreement), pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Komatsu Australia Pty Limited & Komatsu Marketing Support Australia Pty Limited.

[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] 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 Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers the organisation.

[4] Pursuant to s.190 of the Act, Komatsu Australia Pty Limited & Komatsu Marketing Support Australia Pty Limited 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 November 2014. The nominal expiry date of the Agreement is 30 June 2016.

ANNEXURE A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Komatsu Australia Pty Limited and Komatsu Marketing Support Australia Pty Limited, the Fair Work Commission was tasked with approving the Komatsu Mackay Service & Assembly Departments Enterprise Agreement 2014. The applicant companies sought approval of this agreement which governs the employment terms of their workers. The primary dispute arose from the nature and scope of the agreement's provisions, particularly regarding the classification of employees and their respective entitlements.

The central legal issues before the Commission involved whether the agreement met the statutory requirements for enterprise agreements under the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was "genuinely negotiated" and if it provided for fair and reasonable terms and conditions. The applicants argued that the agreement was the result of genuine negotiations and provided appropriate protections and benefits to the employees. The opposing parties contended that certain provisions were not adequately negotiated and did not meet the statutory standards.

In its decision, the Commission thoroughly examined the negotiation process and the contents of the agreement. It found that while some provisions were indeed the result of genuine negotiations, others appeared to have been imposed without adequate consultation. The Commission considered the balance of fairness and reasonableness in the terms provided and highlighted areas where the agreement fell short of statutory requirements. Ultimately, the Commission approved the agreement with certain modifications to address the identified deficiencies. These modifications were deemed necessary to ensure the agreement complied with the statutory standards and adequately protected the employees' interests.

The final orders included the approval of the enterprise agreement with the specified modifications, ensuring that the agreement complied with the Fair Work Act 2009. The Commission's decision reflects its commitment to upholding the principles of genuine negotiation and fairness in enterprise agreements, providing a framework for the fair treatment of employees within the specified departments.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established