Komatsu Australia Pty Ltd T/A Komatsu

[2021] FWCA 7243

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Komatsu Australia Pty Ltd T/A Komatsu
(AG2021/8846)

KOMATSU AUSTRALIA VICTORIAN SERVICE & ASSEMBLY DEPARTMENTS ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 22 DECEMBER 2021

Application for approval of the Komatsu Australia Victorian Service & Assembly Departments Enterprise Agreement 2021

[1] An application has been made for approval of an enterprise agreement to be known as the Komatsu Australia Victorian Service & Assembly Departments Enterprise Agreement 2021 (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 T/A Komatsu (Employer). The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings dated 20 December 2021. 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.

[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 to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers this organisation.

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

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

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 29 December 2021. The nominal expiry date of the Agreement is 31 March 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Komatsu Australia Pty Ltd T/A Komatsu applied for the approval of the Komatsu Australia Victorian Service & Assembly Departments Enterprise Agreement 2021. The application was heard in the Fair Work Commission. The agreement in question aimed to regulate the terms and conditions of employment for employees within the specified departments in Victoria. The dispute centred on whether the agreement complied with the relevant legislative provisions and whether it provided fair and reasonable terms for the employees involved.

The primary legal issue was whether the enterprise agreement met the criteria for approval under the Fair Work Act 2009. Specifically, the court had to consider whether the agreement was "freely" negotiated, did not predetermine the outcome of any future dispute resolution process, and provided fair and reasonable terms for the employees. The court also needed to assess whether the agreement included provisions that were inconsistent with the safety net of the National Employment Standards and other minimum entitlements.

The Fair Work Commission determined that the agreement was fairly negotiated and did not predetermine any future dispute resolution processes. It was noted that the agreement provided terms that were fair and reasonable for the employees, taking into account the specific needs of the service and assembly departments. The court further found that the agreement did not contain any provisions that were inconsistent with the safety net of the National Employment Standards. As a result, the court approved the enterprise agreement, confirming its compliance with all relevant legislative requirements.

The final order of the Fair Work Commission was to approve the Komatsu Australia Victorian Service & Assembly Departments Enterprise Agreement 2021, recognising it as a valid and enforceable agreement under the Fair Work Act 2009. This decision ensures that the terms and conditions set forth in the agreement will apply to the employees in the specified departments, subject to the oversight and enforcement mechanisms provided by the Fair Work Act.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established