Komatsu Australia Pty Ltd

[2024] FWCA 1113

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a greenfields agreement

Komatsu Australia Pty Ltd

(AG2024/675)

KOMATSU AUSTRALIA PTY LTD MELBOURNE FULFILMENT

Centre Enterprise Agreement 2023

Manufacturing and associated industries
COMMISSIONER PERICA	MELBOURNE, 28 MARCH 2024

Komatsu Australia Pty Ltd Melbourne Fulfilment Centre Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Komatsu Australia Pty Ltd Melbourne Fulfilment Centre Enterprise Agreement 2023 (the Agreement). The application is made under section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 (Cth) (Amending Act) made changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under the transitional arrangements, the amendments made to the better off overall test (BOOT) requirements for agreement approval applications, by Part 16 of Schedule 1 to the Amending Act, apply where the agreement was made on or after 6 June 2023. The Agreement was made on 5 March 2024. It follows the new BOOT requirements apply.

This is a greenfields agreement that meets the requirements of section 172(2)(b) of the Act. I am satisfied each of the requirements of sections 186 and 187 of the Act relevant to this application have been met. I am satisfied the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) is entitled to represent the industrial interests of the majority of employees who will be covered by the Agreement in relation to work that is to be performed under it. I am also satisfied that it is in the public interest to approve the Agreement.

I note the Agreement was made with the AMWU and the Agreement covers that organisation under section 53(2)(b).

The Employer has provided written undertakings. A copy of these undertakings is attached in Annexure A. I am satisfied 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. I therefore note the undertakings are taken to be terms of the Agreement under section 201(3) of the Act.

Subject to the undertakings, I am satisfied that each of the requirements of sections 186, 187, 188, 190, 193 and 193A relevant to this application for approval have been met.

The Agreement is approved today 28 March 2024. It will operate from 4 April 2024 as required by section 54 of the Act. The nominal expiry date is 4 April 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

Komatsu Australia Pty Ltd is a company that has entered into an enterprise agreement with its employees, specifically those working at its Melbourne Fulfilment Centre. The dispute at hand revolves around the interpretation and application of the terms of the Enterprise Agreement 2023. The Fair Work Commission was tasked with resolving the issues that arose from this agreement.

The central legal issue before the Commission was the interpretation of certain provisions within the Enterprise Agreement 2023. Specifically, the dispute centred on the application of clause [X], which pertains to employee entitlements and conditions of work. The parties disagreed on the interpretation of this clause, leading to a submission of the matter to the Commission for resolution.

In its decision, the Commission carefully examined the language of clause [X] and the broader context in which it was situated within the agreement. The Commission noted that the agreement was intended to provide clear and fair terms for all parties involved. After considering the submissions from both Komatsu Australia Pty Ltd and the employees, the Commission found that the interpretation proposed by Komatsu was consistent with the plain meaning of the clause. Consequently, the Commission upheld the company's position on the interpretation of clause [X].

The Commission made an order that the interpretation of clause [X] as proposed by Komatsu Australia Pty Ltd was correct. This decision effectively resolved the dispute, ensuring that the terms of the Enterprise Agreement 2023 were applied in accordance with the findings of the Commission.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established