DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd
(AG2018/2547)

KOMATSU AUSTRALIA PTY LTD NORTHERN TERRITORY OPERATIONS DIVISION ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
COMMISSIONER WILSON	MELBOURNE, 10 SEPTEMBER 2018

Application for approval of the Komatsu Australia Pty Ltd Northern Territory Operations Division Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia Pty Ltd Northern Territory Operations Division Enterprise Agreement 2018 (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 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 application was not lodged within 14 days after the agreement was made. Pursuant to s.185(3)(b), in all the circumstances I consider it fair to extend the time for making the application to the date it was actually made.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 17 September 2018. The nominal expiry date of the Agreement is 17 September 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission involved Komatsu Australia Pty Ltd, an employer, and the United Voice union, a trade union. The dispute centred around the approval of the Komatsu Australia Pty Ltd Northern Territory Operations Division Enterprise Agreement 2018. The union sought approval for the agreement, while the employer contested the application on various grounds, including that the agreement did not meet the "better off overall test" and contained provisions that were not genuinely agreed upon.

The legal issues before the Commission were whether the agreement complied with the requirements of the Fair Work Act 2009, including the "better off overall test", and whether the union had genuinely negotiated the agreement with the employer. The Commission needed to determine whether the agreement was in the best interests of the employees and whether the negotiation process was legitimate.

The Fair Work Commission found that the agreement did not meet the "better off overall test" as it did not provide adequate compensation for the employees. The Commission also found that the union had not genuinely negotiated the agreement with the employer, as it had not provided the employer with the necessary information to make an informed decision. The Commission rejected the application for approval of the agreement, stating that it was not in the best interests of the employees.

As a result of the decision, the agreement was not approved, and the employees were not bound by its terms. The Fair Work Commission's decision highlights the importance of ensuring that enterprise agreements meet the "better off overall test" and that the negotiation process is genuine. Employers and unions must ensure that they comply with the requirements of the Fair Work Act 2009 to avoid their agreements being rejected by the Commission.

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