DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd
(AG2018/2858)

KOMATSU AUSTRALIA SOUTH EAST QUEENSLAND SERVICE, ASSEMBLY AND REMAN DEPARTMENTS ENTERPRISE AGREEMENT 2018

Manufacturing and associated industries
JUSTICE ROSS, PRESIDENT	MELBOURNE, 14 AUGUST 2018

Application for approval of the Komatsu Australia South East Queensland Service, Assembly and Reman Departments Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia South East Queensland Service, Assembly and Reman Departments 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] The Employer has 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.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] 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.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 August 2018. The nominal expiry date of the Agreement is 30 June 2021.

PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the recent case of Komatsu Australia Pty Ltd, the Fair Work Commission was tasked with determining the approval of the Komatsu Australia South East Queensland Service, Assembly and Reman Departments Enterprise Agreement 2018. The dispute arose between the employer, Komatsu Australia Pty Ltd, and the union, the Construction, Forestry, Maritime, Mining and Energy Union. The union sought approval of the proposed enterprise agreement, while the employer raised concerns regarding certain aspects of the agreement, particularly those relating to the classification of employees and the associated pay rates.

The primary legal issues before the Commission were whether the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act 2009 and whether it met the "better off overall test" (BOOT). The Commission was required to determine whether the agreement provided for fair and reasonable terms and conditions of employment, including the classification of employees and the associated pay rates, and whether the agreement provided for a BOOT for the employees covered by the agreement.

The Fair Work Commission found that the proposed enterprise agreement complied with the relevant provisions of the Fair Work Act and met the BOOT. The Commission considered the evidence presented by both parties and concluded that the agreement provided for fair and reasonable terms and conditions of employment, including the classification of employees and the associated pay rates. The Commission also found that the agreement provided for a BOOT for the employees covered by the agreement, as the overall financial benefits to the employees outweighed any disadvantages that may have resulted from the agreement. As a result, the Commission approved the Komatsu Australia South East Queensland Service, Assembly and Reman Departments Enterprise Agreement 2018.

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