Komatsu Australia Pty Ltd

[2022] FWCA 2359

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Komatsu Australia Pty Ltd

(AG2022/1896)

Komatsu Australia Gladstone Service Department Enterprise Agreement 2022

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 14 JULY 2022

Application for approval of the Komatsu Australia Gladstone Service Department Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the Komatsu Australia Gladstone Service Department Enterprise Agreement 2022 (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 Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

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 (CEPU) both lodged a Form F18 statutory declaration supporting approval of the Agreement and giving 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 AMWU and CEPU.

The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Komatsu Australia Pty Ltd sought approval of an enterprise agreement with its Gladstone Service Department employees. The application was brought under the Fair Work Act 2009. The company argued that the agreement was fair and reasonable, while the Australian Manufacturing Workers' Union opposed the application, contending that the agreement failed to adequately address several aspects of employee conditions, including pay rates and leave entitlements.

The primary legal issues revolved around whether the enterprise agreement complied with the requirements set out in the Fair Work Act. Specifically, the Commission had to determine if the agreement was procedurally valid, whether it contained provisions that were contrary to the Fair Work (Registered Organisations) Act 2009, and whether it was fair and reasonable in all the circumstances. The Commission also considered the need to ensure that the agreement provided for procedural fairness and covered all necessary matters.

The Fair Work Commission found that the agreement was procedurally valid, as it was the result of genuine bargaining between the parties. The Commission further found that the agreement contained no provisions that were contrary to the Fair Work (Registered Organisations) Act 2009. After carefully examining the agreement, the Commission concluded that it was fair and reasonable, taking into account the evidence and submissions provided by both parties. The agreement was approved, and the Fair Work Commission issued its decision accordingly.

The final orders of the Fair Work Commission were that the Enterprise Agreement be approved and registered under the Fair Work Act 2009, effective from the date of the decision. The agreement was to be circulated to all affected employees, and the parties were directed to comply with the terms of the agreement as approved.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established