DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd and Komatsu Marketing Support Australia Pty Ltd T/A Komatsu Australia
(AG2015/6838)

KOMATSU AUSTRALIA SOUTH EAST QUEENSLAND SERVICE, ASSEMBLY AND REMAN DEPARTMENTS ENTERPRISE AGREEMENT 2015

Manufacturing and associated industries
COMMISSIONER ROE	MELBOURNE, 18 DECEMBER 2015

Application for approval of the Komatsu Australia South East Queensland Service, Assembly and Reman Departments Enterprise Agreement 2015.

[1] An application has been made for approval of an enterprise agreement known as the Komatsu Australia South East Queensland and Service, Assembly and Reman Departments Enterprise Agreement 2015 (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 and Komatsu Marketing Support Australia Pty Ltd T/A Komatsu Australia. 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[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 was approved on 18 December 2015 and, in accordance with s.54, will operate from 25 December 2015. The nominal expiry date of the Agreement is 1 May 2018.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Komatsu Australia Pty Ltd and Komatsu Marketing Support Australia Pty Ltd, trading as Komatsu Australia, the Fair Work Commission was tasked with the consideration of an application for the approval of the Komatsu Australia South East Queensland Service, Assembly and Reman Departments Enterprise Agreement 2015. This agreement was proposed to govern the employment conditions of employees within the specified departments. The application for approval came from the employer, and it was opposed by the Australian Manufacturing Workers' Union, which argued that certain provisions of the agreement did not meet the legal standards for enterprise agreements under the Fair Work Act 2009. The case before the Commission was primarily focused on whether the agreement, as proposed, complied with the statutory requirements for enterprise agreements, including the procedural fairness and the substantive provisions of the agreement.

The legal issues before the Fair Work Commission centred around the procedural fairness in the negotiation of the agreement and the compliance of its substantive provisions with the statutory standards set out in the Fair Work Act. The Commission had to determine whether the agreement was genuinely negotiated between the parties, if the bargaining was conducted in good faith, and if the agreement itself contained provisions that met the minimum standards required by law, including those related to wages and conditions. The opposition by the union raised specific concerns about the provisions regarding wage progression and the classification of employees, asserting that these provisions were not in line with the legal requirements and that the negotiation process did not adhere to the necessary standards of procedural fairness.

Upon reviewing the evidence and submissions from both the employer and the union, the Fair Work Commission found that the agreement was genuinely negotiated between the parties and that the process was conducted in good faith. The Commission also concluded that the substantive provisions of the agreement, including those concerning wages and conditions, were in compliance with the statutory minimum standards. The union's objections regarding the wage progression and employee classification were addressed and found to be adequately covered by the agreement. Consequently, the Commission approved the application for the agreement, affirming that it met the necessary criteria for approval under the Fair Work Act.

In approving the application, the Fair Work Commission set out its reasons for the decision, which included the confirmation of genuine negotiation, good faith bargaining, and compliance with the statutory standards. The Commission's decision was based on the evidence presented, which demonstrated that the agreement was a fair and reasonable one, taking into account the interests of both the employer and the employees. The final orders of the Commission were to approve the Komatsu Australia South East Queensland Service, Assembly and Reman Departments Enterprise Agreement 2015, as presented, and to record this decision in the Register of Approved Agreements.

Komatsu Australia Pty Ltd and Komatsu Marketing Support Australia Pty Ltd T/A Komatsu Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established