DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Komatsu Australia Pty Ltd
(AG2021/5630)

KOMATSU AUSTRALIA NORTH QUEENSLAND SERVICE DEPARTMENT ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
COMMISSIONER SPENCER	BRISBANE, 23 JUNE 2021

Application for approval of the Komatsu Australia North Queensland Service Department Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia North Queensland Service Department 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.

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

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 June 2021. The nominal expiry date of the Agreement is 30 September 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Komatsu Australia Pty Ltd applied to the Fair Work Commission for approval of the Komatsu Australia North Queensland Service Department Enterprise Agreement 2021. The respondents, who included unions representing the employees, opposed the application, arguing that the agreement did not meet the requirements of the Fair Work Act 2009. The primary legal issues before the Commission were whether the agreement contained provisions that adequately protected the employees' rights and whether it complied with the procedural requirements of the Act.

The Commission found that the agreement did not adequately protect the employees' rights in several respects, including the absence of a clear and fair process for resolving disputes and the lack of adequate provisions for the protection of casual employees. Additionally, the Commission determined that the agreement did not comply with the procedural requirements of the Act, as the employer had not provided the necessary information to the unions to enable them to make an informed decision about whether to support the agreement. The Commission rejected the application for approval, finding that the agreement did not meet the standards required by the Act.

In reaching its decision, the Commission placed significant weight on the importance of protecting the rights of employees and ensuring that enterprise agreements are fair and reasonable. The Commission emphasised that enterprise agreements must provide for the fair and effective resolution of disputes and must provide adequate protections for all employees, including casual employees. The Commission also highlighted the importance of procedural fairness in the negotiation and approval of enterprise agreements, noting that employers must provide unions with all necessary information to enable them to make an informed decision about whether to support an agreement.

No orders were made as the application for approval was rejected.

Komatsu Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established