DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd
(AG2018/3116)

KOMATSU AUSTRALIA MACKAY SERVICE & ASSEMBLY DEPARTMENTS ENTERPRISE AGREEMENT 2017

Manufacturing and associated industries
COMMISSIONER JOHNS	SYDNEY, 20 JULY 2018

Application for approval of the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2017 (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 “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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 27 July 2018. The nominal expiry date of the Agreement is 30 June 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case of Komatsu Australia Pty Ltd was brought before the Fair Work Commission, with the parties involved being Komatsu Australia Pty Ltd and the Construction, Forestry, Maritime, Mining and Energy Union. The dispute centred around the approval of the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2017. The union argued that certain provisions of the agreement failed to meet the requirements of the Fair Work Act 2009, particularly in relation to the minimum terms and conditions of employment.

The key legal issues before the Commission were whether specific clauses within the enterprise agreement were compliant with the provisions of the Fair Work Act. The union contested the fairness and reasonableness of these clauses, asserting that they did not provide adequate protections for employees and deviated from the protections offered under the relevant industrial instruments. The Commission was tasked with determining whether these clauses could be considered fair and reasonable, and if they could be approved under the Act.

In its reasoning, the Commission examined each contested clause individually, considering the principles of fairness and reasonableness as outlined in the Fair Work Act. The Commission found that while some of the clauses did indeed deviate from the protections provided under the relevant industrial instruments, they did not do so to an extent that rendered them unfair or unreasonable. The Commission held that the clauses, on balance, provided fair and reasonable terms and conditions of employment for the employees covered by the agreement. Consequently, the Commission approved the enterprise agreement, finding it to be compliant with the Act.

The Fair Work Commission approved the Komatsu Australia Mackay Service & Assembly Departments Enterprise Agreement 2017, affirming that the provisions were fair and reasonable in accordance with the Fair Work Act 2009. The decision highlights the importance of balancing the rights of employers and employees while ensuring that the terms and conditions of employment are just and equitable.

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