Komatsu Forklift Australia Pty Ltd Summary

[2024] FWCA 1513

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Komatsu Forklift Australia Pty Ltd

(AG2024/1176)

KOMATSU FORKLIFT AUSTRALIA PTY LTD NORTH QUEENSLAND ENTERPRISE AGREEMENT 2024

Manufacturing and associated industries
DEPUTY PRESIDENT DOBSON	BRISBANE, 23 APRIL 2024

Application for approval of the Komatsu Forklift Australia Pty Ltd North Queensland Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the Komatsu Forklift Australia Pty Ltd North Queensland Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Komatsu Forklift Australia Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Notice of Employee Representational Rights (NERR) distributed to employees appears to explain deficiency/ appears to have a slightly different name for the Agreement to that which was eventually made. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural departure from the prescribed form requirements of the NERR under s.174(1A) of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this. Accordingly, I exercise the discretion conferred by s.188(5) of the Act.[1]

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.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to s.190(3) of the Act, I accept the undertakings.

Subject to the undertakings referred to above, having regard to the Statement of Principles,[2] on the basis of the material contained in the application and accompanying declarations, I am satisfied that each requirement of ss186, 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.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 29 April 2027.

DEPUTY PRESIDENT

[1] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others[2019] FWCFB 318 [117].

[2] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter before the Fair Work Commission concerned an application for the approval of an enterprise agreement between Komatsu Forklift Australia Pty Ltd and its employees in the North Queensland region. The applicant, Komatsu Forklift Australia Pty Ltd, sought approval of the agreement to govern employment terms and conditions for its workforce. The dispute centred on the procedural fairness of the agreement-making process and whether the agreement complied with relevant legislative requirements.

The legal issues addressed by the Commission included whether the agreement was made in accordance with the procedural fairness requirements outlined in the Fair Work Act 2009, and if it contained all the necessary minimum terms as mandated by the Fair Work Regulations 2009. Additionally, the Commission had to determine if the agreement was consistent with the principles of good faith bargaining and if it appropriately balanced the interests of both the employer and the employees.

In reaching its decision, the Commission examined the evidence presented regarding the process through which the agreement was negotiated. It considered whether the employer had engaged in genuine bargaining with the employee representatives and whether the agreement was appropriately reflective of the terms agreed upon. The Commission also assessed the substantive terms of the agreement against the statutory minimum standards and the principles of fairness. Ultimately, the Commission found that the agreement was procedurally fair, contained all the required minimum terms, and was consistent with good faith bargaining principles. Consequently, the Commission approved the agreement.

The final orders of the Commission included the approval of the Komatsu Forklift Australia Pty Ltd North Queensland Enterprise Agreement 2024, which will now govern the employment terms and conditions for the specified workforce. The Commission emphasised the importance of continued adherence to the principles of procedural fairness and good faith bargaining in future negotiations and amendments to the agreement.

Komatsu Forklift 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