DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Komatsu Australia Pty Ltd
(AG2019/3360)

KOMATSU AUSTRALIA KCGM MAINTENANCE WORKSHOP ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
DEPUTY PRESIDENT MASSON	MELBOURNE, 9 OCTOBER 2019

Application for variation of the Komatsu Australia KCGM Maintenance Workshop Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to the Komatsu Australia KCGM Maintenance Workshop Enterprise Agreement 2017 (the Agreement). The application was made by Komatsu Australia Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 12 April 2017. Those undertakings form part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 9 October 2019.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The parties to this matter were Komatsu Australia Pty Ltd, represented by their counsel, and the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), appearing in person. The dispute centred on the application by Komatsu Australia to vary certain provisions of the Komatsu Australia KCGM Maintenance Workshop Enterprise Agreement 2017. The application was heard in the Fair Work Commission. The central legal issues before the Commission were whether the proposed variations to the enterprise agreement were genuinely in the interests of the employees and whether the variations met the statutory requirements under the Fair Work Act 2009. Specifically, the Commission had to consider whether the proposed changes were necessary to ensure the ongoing viability of Komatsu Australia and whether the changes were fair and reasonable in all the circumstances.

In delivering its decision, the Commission undertook a comprehensive analysis of the evidence provided by both parties. The Commission found that the proposed variations were necessary to ensure the financial sustainability of Komatsu Australia, particularly in light of the significant challenges faced by the industry. The Commission determined that the proposed changes, including alterations to rosters and the introduction of new technology, were genuinely in the interests of the employees as they would provide greater job security and opportunities for skill development. Furthermore, the Commission concluded that the variations met the statutory requirements and were fair and reasonable, taking into account the need for flexibility in the workplace and the interests of both the employer and the employees. As a result, the Commission approved the application for variation of the enterprise agreement.

The Fair Work Commission granted Komatsu Australia's application to vary the Komatsu Australia KCGM Maintenance Workshop Enterprise Agreement 2017, with the variations coming into effect from the date of the decision. The Commission's approval was based on its finding that the proposed changes were necessary for the financial viability of Komatsu Australia and were in the best interests of the employees. The decision highlighted the importance of balancing the needs of the employer with the rights and interests of the employees, while also considering the broader economic context. The variations allowed Komatsu Australia to implement necessary changes to remain competitive in the industry, while also providing job security and opportunities for skill development for the employees.

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