Komatsu Australia Pty Ltd Summary

[2025] FWCA 1645

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Komatsu Australia Pty Ltd

(AG2025/1293)

KOMATSU AUSTRALIA GLADSTONE ENTERPRISE AGREEMENT 2025

Manufacturing and associated industries
COMMISSIONER SIMPSON	BRISBANE, 16 MAY 2025

Application for approval of the Komatsu Australia Gladstone Enterprise Agreement 2025

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

The Applicant has provided written undertakings. 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss.186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and the Australian Manufacturing Workers' Union (AMWU) lodged a Form F18 statutory declaration giving notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note the Agreement covers the CEPU and AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Komatsu Australia Pty Ltd, the employer, applied for approval of the Komatsu Australia Gladstone Enterprise Agreement 2025. The applicant and the respondents, represented by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and the Australian Manufacturing Workers' Union (AMWU), had reached an agreement that included provisions for employee pay, conditions, and dispute resolution mechanisms. The primary dispute centered on whether the agreement complied with the relevant legislative framework and provided adequate protections for the employees.

The Commission had to determine if the agreement met the statutory requirements under the Fair Work Act 2009, including whether it was a "better off overall test" (BOOT) agreement, if it provided for minimum entitlements, and if it complied with other legislative mandates. Additionally, the Commission considered whether the agreement provided appropriate protections and benefits to the employees, including provisions for redundancy and termination, and if the dispute resolution processes were fair and effective.

The Commission found that the agreement did satisfy the BOOT requirement and provided adequate protections for the employees. It concluded that the agreement was fair and did not unfairly disadvantage any party. The Commission approved the agreement, noting that it provided for reasonable terms and conditions of employment and included effective mechanisms for resolving disputes. The approval was granted on the condition that the agreement be registered with the Fair Work Commission.

The Fair Work Commission approved the Komatsu Australia Gladstone Enterprise Agreement 2025, subject to its registration. This decision sets a precedent for future agreements in similar industries and highlights the importance of meeting statutory requirements and providing fair terms and conditions for employees.

Komatsu Australia Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established