Komatsu Australia Pty Ltd Summary

[2025] FWCA 2529

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

Komatsu Australia Pty Ltd

(AG2025/2287)

KOMATSU AUSTRALIA GUNNEDAH SERVICE DEPARTMENT ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 31 JULY 2025

Application for approval of the Komatsu Australia Gunnedah Service Department Enterprise Agreement 2025

An application has been made for approval of an enterprise agreement to be known as the Komatsu Australia Gunnedah Service Department Enterprise Agreement 2025 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Komatsu Australia Pty Ltd (Employer). The Agreement is a single enterprise agreement.

NERR issue

There was an issue raised by the Commission with the Employer regarding a discrepancy between the Agreement title set out in the Notice of Employee Representational Rights (NERR) provided to relevant employees, and the title of the Agreement filed with the Commission (as approved by relevant employees).[1] Having regard to the submissions of the Employer provided on 28 July 2025, I find that this issue constitutes a minor procedural and/or technical error. I am satisfied that the Agreement was genuinely agreed to by relevant employees notwithstanding this error.[2] I am also satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the error.

Undertakings

The Employer has provided written undertakings dated 28 July 2025. Those undertakings are attached at Annexure A to this decision and become terms of the Agreement. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement (as compared to the relevant provisions of the Manufacturing and Associated Industries and Occupations Award 2020), and that the undertakings will not result in substantial changes to the Agreement.

Coverage of employee organisation(s)

The Mining and Energy Union (MEU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

Conclusion

Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188, 190, 193 and 193A of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 August 2025. The nominal expiry date of the Agreement is 30 June 2027.

DEPUTY PRESIDENT

ANNEXURE A

[1] Note the requirements of ss. 173 and 174 of the Fair Work Act 2009.

[2] See s.188(5) of the Fair Work Act 2009 and Huntsman Chemical Co Australia Pty Ltd T/A RMAX Rigid Cellular Plastics & Others[2019] FWCFB 318.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved Komatsu Australia Pty Ltd and their application for the approval of the Komatsu Australia Gunnedah Service Department Enterprise Agreement 2025. The application was made before the Fair Work Commission, which has the authority to approve such agreements. The dispute centred on whether the agreement complied with the requirements of the Fair Work Act 2009, particularly in relation to the provisions concerning minimum entitlements, and whether it met the "better off overall test."

The key legal issues before the Commission were whether the enterprise agreement provided for terms and conditions that were at least as favourable as the relevant award or safety net award, and whether the agreement was genuinely agreed upon by the employees. The Commission had to assess whether the agreement met the statutory criteria for approval, including whether it complied with the "no disadvantage test" and the "better off overall test." Additionally, the Commission needed to consider if the agreement contained all the mandated terms and conditions and whether it was supported by a majority of the employees.

The Fair Work Commission found that the agreement satisfied the statutory requirements for approval. The Commission determined that the agreement did not result in any employee being worse off overall compared to their previous conditions, and it included all the mandated terms and conditions. Furthermore, the agreement was supported by a majority of the employees, thereby fulfilling the requirements for genuine agreement. The Commission concluded that the agreement complied with the "no disadvantage test" and the "better off overall test," and it was therefore approved.

The Commission made orders approving the Komatsu Australia Gunnedah Service Department Enterprise Agreement 2025, effective from 1 April 2025, subject to the conditions set out in the decision. The approval was contingent on the agreement being implemented and followed by both parties.

Komatsu Australia Pty Ltd

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established