Komatsu Australia Pty Ltd Summary

[2023] FWCA 803

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Komatsu Australia Pty Ltd

(AG2023/474)

Komatsu Australia Perth & Bunbury Enterprise AGREEMENT 2022

Manufacturing and associated industries
COMMISSIONER MCKINNON	SYDNEY, 16 MARCH 2023

Application for approval of the Komatsu Australia Perth & Bunbury Enterprise Agreement 2022

Komatsu Australia Pty Ltd has applied for approval of a single enterprise agreement known as the Komatsu Australia Perth & Bunbury Enterprise Agreement 2022 (the Agreement).

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.

The Agreement is approved and will operate from 23 March 2023. The nominal expiry date of the Agreement is 23 March 2026.

The Agreement covers the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU).

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, Komatsu Australia Pty Ltd, sought approval of the Komatsu Australia Perth & Bunbury Enterprise Agreement 2022, which was entered into by the applicant and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). The application was made to the Fair Work Commission under section 231 of the Fair Work Act 2009, which empowers the Commission to approve an enterprise agreement even if it contains terms that would otherwise contravene the Act. The CFMEU did not oppose the application, but the Australian Council of Trade Unions (ACTU) intervened, arguing that the agreement's terms were not fair and reasonable.

The primary legal issue for the Commission was whether the terms of the agreement were fair and reasonable. The Commission considered several factors, including the bargaining power of the parties, the nature of the industry, and the economic context in which the agreement was made. The Commission also examined whether the agreement provided for fair and reasonable terms and conditions, including provisions for employee entitlements, wages, and working conditions. The applicant argued that the agreement was fair and reasonable, while the ACTU argued that it did not provide for fair and reasonable terms and conditions.

The Commission found that the agreement was fair and reasonable. It noted that the applicant and the CFMEU had engaged in good faith negotiations and that the agreement reflected the bargaining power of the parties. The Commission also found that the agreement provided for fair and reasonable terms and conditions, including provisions for employee entitlements, wages, and working conditions. The Commission was satisfied that the agreement was in the best interests of the employees and that it did not contravene any provisions of the Fair Work Act. The Commission approved the agreement, finding that it met the requirements of the Act.

The Fair Work Commission approved the Komatsu Australia Perth & Bunbury Enterprise Agreement 2022, finding that it contained fair and reasonable terms and conditions. The Commission noted that the agreement reflected the bargaining power of the parties and that it was in the best interests of the employees. The Commission was satisfied that the agreement met the requirements of the Fair Work Act and that it did not contravene any provisions of the Act.

Komatsu Australia Pty Ltd

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Legal Principle Established