Komatsu Australia Pty Ltd

[2022] FWCA 717

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Komatsu Australia Pty Ltd

(AG2022/62)

Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2021

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 2 MARCH 2022

Application for approval of the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2021

An application has been made for approval of an enterprise agreement known as the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2021 (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 clause 1.6.2 of the Agreement, 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 the 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 matter of an application for approval of the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2021, the applicant, Komatsu Australia Pty Ltd, sought approval from the Fair Work Commission. The nature of the dispute involved the terms and conditions of employment for employees in the Mackay Service & Assembly departments of Komatsu Australia. The Commission was tasked with determining whether the proposed agreement complied with the Fair Work Act 2009 and whether it was in the best interests of the employees.

The central legal issues before the Commission were whether the agreement met the statutory requirements for approval under the Fair Work Act, including whether it provided for minimum rates of pay and conditions, and whether it was free from any provisions that would be detrimental to the employees. The Commission also needed to assess if the agreement was genuinely negotiated and if it appropriately balanced the interests of both the employer and the employees.

The Fair Work Commission, after reviewing the submissions and evidence from both parties, found that the agreement complied with all statutory requirements. The Commission was satisfied that the agreement provided for minimum rates of pay and conditions and did not contain any provisions that would be detrimental to the employees. It was also determined that the agreement had been genuinely negotiated and appropriately balanced the interests of both parties. Therefore, the Commission approved the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2021.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established