Komatsu Australia Pty Ltd

[2025] FWC 1364

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

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

Komatsu Australia Pty Ltd

(AG2025/1327)

KOMATSU AUSTRALIA WOLLONGONG SERVICE DEPARTMENT ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 15 MAY 2025

Application for approval of the Komatsu Australia Wollongong Service Department Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement to be known as the Komatsu Australia Wollongong Service Department Enterprise Agreement 2025 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Komatsu Australia Pty Ltd (Employer). The Agreement is a single enterprise agreement.

Coverage of employee organisation(s)

The Australian Workers’ Union (AWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Conclusion

I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 22 May 2025. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant, Komatsu Australia Pty Ltd, sought approval of the Komatsu Australia Wollongong Service Department Enterprise Agreement 2025, which was to be applied to employees of the Wollongong Service Department. The Fair Work Commission was the tribunal tasked with considering the application. The dispute centred on whether the agreement met the statutory requirements for enterprise agreements under the Fair Work Act 2009, specifically focusing on whether it was made in good faith and whether it met the "better off overall test". The Commission had to determine whether the agreement provided for fair and reasonable terms and conditions of employment, and whether it was made in good faith and without coercion.

The court had to consider whether the agreement contained all the mandated terms and conditions, and if it complied with the "no disadvantaging" test. This involved assessing if the agreement was fair and reasonable, and whether it provided for terms and conditions that were at least as good as the relevant award or safety net award. The court also needed to ascertain if the agreement was made in good faith, considering the bargaining process and any potential coercion. Additionally, the Commission evaluated if the agreement met the "better off overall test", ensuring that employees were not worse off overall than under the applicable award.

After careful consideration, the Commission determined that the agreement was made in good faith and met all the statutory requirements. The agreement contained all the mandated terms and conditions, and it did not result in any employee being worse off overall. The Commission was satisfied that the agreement provided for fair and reasonable terms and conditions of employment. Consequently, the Commission approved the agreement, finding it to be in compliance with the relevant legislative provisions.

The final orders of the Commission included the approval of the Komatsu Australia Wollongong Service Department Enterprise Agreement 2025, subject to certain conditions and provisions. The agreement was to be registered by the Registrar of the Fair Work Commission and would apply to the employees of the Wollongong Service Department, effective from the date of registration. The Commission noted that the agreement would remain in force until the earlier of its expiry or termination in accordance with the Fair Work Act 2009.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established