DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Limited
(AG2018/2271)

KOMATSU AUSTRALIA GLADSTONE SERVICE DEPARTMENT ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 10 SEPTEMBER 2018

Application for approval of the Komatsu Australia Gladstone Service Department Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia Gladstone Service Department Enterprise Agreement 2018 (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 Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), and Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers these organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 September 2018. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Komatsu Australia Pty Limited sought approval of the Komatsu Australia Gladstone Service Department Enterprise Agreement 2018. The agreement proposed changes to the terms and conditions of employment for employees within the Gladstone Service Department. The applicant argued that the changes were necessary to improve operational efficiency and to remain competitive in the industry.

The primary legal issue before the Commission was whether the proposed changes in the agreement were fair and reasonable, taking into account the principles of the Fair Work Act 2009. Specifically, the Commission needed to assess if the proposed changes met the "better off overall test" and if they were consistent with the objectives of the Act, including maintaining and enhancing workplace relations. Additionally, the Commission had to consider whether the agreement provided for proper consultation with employees and if it complied with any relevant award or registered agreement.

The Commission found that the proposed changes in the agreement were fair and reasonable. The applicant demonstrated that the changes were necessary to improve operational efficiency and to remain competitive. The Commission was satisfied that the changes met the "better off overall test" as they provided for a range of benefits to employees, including wage increases, improved leave entitlements, and better access to training and development opportunities. The Commission also found that the agreement provided for proper consultation with employees and was consistent with the objectives of the Act. The Commission approved the agreement, stating that it was in the best interests of the employees and the employer.

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