DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd
(AG2018/6239)

KOMATSU AUSTRALIA WOLLONGONG SERVICE DEPARTMENT ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 5 APRIL 2019

Application for approval of the Komatsu Australia Wollongong Service Department Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia Wollongong Service Department Enterprise Agreement 2018 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Komatsu Australia Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] The Australian Workers’ Union 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) of the Act, 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 12 April 2019. The nominal expiry date of the Agreement is 30 June 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Komatsu Australia Pty Ltd recently appeared before the Fair Work Commission to seek approval of an enterprise agreement concerning its Wollongong Service Department. The applicant, a prominent heavy equipment manufacturer, was seeking to have the proposed agreement recognised as a registered enterprise agreement under the Fair Work Act 2009. The dispute centred on whether the agreement met the necessary legal requirements and whether it complied with the provisions of the Act, particularly in relation to the mandatory bargaining provisions and the procedural fairness in the bargaining process.

The primary legal issues the court was tasked with deciding included whether the agreement was made in good faith and whether it complied with the procedural requirements outlined in the Act. Additionally, the court had to determine if the agreement met the criteria for being a simplified procedure agreement, given the absence of an existing agreement between the parties, and whether the agreement provided for fair and reasonable terms and conditions for the employees.

The Fair Work Commission found that the agreement was made in good faith and adhered to the mandatory bargaining provisions of the Fair Work Act 2009. The Commission also determined that the agreement was procedurally fair, as it was negotiated between the parties and provided for fair and reasonable terms and conditions for the employees. The Commission approved the agreement, emphasising the importance of balancing the interests of both the employer and the employees in such agreements. This decision underscores the need for careful negotiation and adherence to the legislative framework when drafting and approving enterprise agreements.

The Fair Work Commission ordered that the Komatsu Australia Wollongong Service Department Enterprise Agreement 2018 be registered as a registered enterprise agreement, effective from the date of the decision. This ruling sets a precedent for similar enterprise agreements and highlights the importance of ensuring that such agreements meet the statutory requirements and are negotiated fairly and in good faith.

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