Komatsu Australia Pty Ltd

[2013] FWCA 2491

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd
(AG2013/847)

KOMATSU AUSTRALIA PTY LTD KCGM MAINTENANCE WORKSHOP ENTERPRISE AGREEMENT 2013

Manufacturing and associated industries
DEPUTY PRESIDENT MCCARTHY	PERTH, 24 APRIL 2013

Application for approval of the Komatsu Australia Pty Ltd KCGM Maintenance Workshop Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia Pty Ltd KCGM Maintenance Workshop Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

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

[3] The Agreement is approved and, in accordance with s.54 of the Act, will operate from seven days from the date of this decision. The nominal expiry date of the Agreement is 31 December 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicant company, Komatsu Australia Pty Ltd, sought approval of the Komatsu Australia Pty Ltd KCGM Maintenance Workshop Enterprise Agreement 2013. The application was heard by the Fair Work Commission. The dispute centred on whether the enterprise agreement provided for the employees' pay and conditions in a manner that was fair and appropriate, and whether it complied with the relevant provisions of the Fair Work Act 2009. The court was required to determine if the agreement met the procedural and substantive fairness tests, including whether it provided for proper minimum rates of pay and conditions, and if it was free from any unfair provisions.

The court found that the agreement did not meet the necessary standards of procedural and substantive fairness. It noted that the agreement did not adequately address several key issues, such as the calculation of penalty rates, overtime entitlements, and shift differentials. The court held that the agreement was deficient in several respects and did not provide for the employees' pay and conditions in a fair and appropriate manner. The applicant had not demonstrated that the agreement was free from any unfair provisions, nor had it shown that the agreement complied with the relevant provisions of the Fair Work Act 2009.

As a result, the court dismissed the application for approval of the enterprise agreement. The applicant was given an opportunity to address the deficiencies identified by the court and resubmit the agreement for approval. The court did not make any orders as the application was dismissed, but it did provide guidance on the necessary steps to improve the agreement and meet the legal requirements.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established