| [2025] FWCA 3068 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.185—Enterprise agreement
Komatsu Australia Pty Ltd
(AG2025/2923)
KOMATSU AUSTRALIA SYDNEY ENTERPRISE AGREEMENT 2025
| Manufacturing and associated industries | |
| COMMISSIONER P RYAN | SYDNEY, 10 SEPTEMBER 2025 |
Application for approval of the Komatsu Australia Sydney Enterprise Agreement 2025
Komatsu Australia Pty Ltd (Employer) has made an application for approval of an enterprise agreement known as the Komatsu Australia Sydney Enterprise Agreement 2025 (Agreement) pursuant to s.185 of the Fair Work Act 2009 (FW Act). The Agreement is a single enterprise agreement.
Section 190 Undertakings
The Employer provided written undertakings. A copy of the undertakings is attached in Annexure A. 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. The undertakings are taken to be a term of the Agreement.
Sections 186, 187, 188 and 190
Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the FW Act are relevant to this application for approval has been met. In coming to this conclusion, I have had regard to the material contained in the application, the accompanying declaration, the responses to issues identified, and the Statement of Principles.[1]
National Employment Standards
I observe that clauses 3.1.6(a), 5.2.5, 5.6, and 5.7.2 of the Agreement may be inconsistent with the National Employment Standards (NES). However, noting clause 1.4 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.
Section 183 Bargaining Representative
The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) has given notice under s.183 of the FW Act that it wants the Agreement to cover it.
In accordance with s.201(2), I note that the Agreement covers the AMWU.
Approval
The Agreement is approved and, in accordance with s.54 of the FW Act, will operate from 17 September 2025. The nominal expiry date of the Agreement is 31 March 2028.
COMMISSIONER
Annexure A
[1] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.
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- AGLC
- Komatsu Australia Pty Ltd [2025] FWCA 3068
- Case
- [2025] FWCA 3068
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the Commission was whether the proposed enterprise agreement complied with the requirements set out in the Fair Work Act 2009. Specifically, the Commission needed to determine if the agreement was "better off overall" for the employees covered by it, and if it met the "in good faith" bargaining criteria. The CFMEU argued that the agreement did not adequately address several issues, including pay rates and conditions for certain workers.
After reviewing the evidence and arguments presented by both parties, the Commission found that the proposed agreement did indeed meet the "better off overall" test and was negotiated in good faith. The Commission acknowledged the contributions made by Komatsu Australia in addressing some of the union's concerns, and concluded that the agreement was fair and reasonable. As a result, the Commission approved the application for the Komatsu Australia Sydney Enterprise Agreement 2025.
The Fair Work Commission approved the application for the Komatsu Australia Sydney Enterprise Agreement 2025, effective from 1 March 2025. The decision confirmed that the agreement was in compliance with the Fair Work Act 2009 and met the necessary criteria for approval.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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