DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KONE Elevators Pty Ltd
(AG2019/4663)

KONE ELEVATORS PTY LTD (TASMANIA) CONSTRUCTION & SERVICE EMPLOYEES ENTERPRISE AGREEMENT 2019

Building, metal and civil construction industries
DEPUTY PRESIDENT COLMAN	MELBOURNE, 19 DECEMBER 2019

Application for approval of the KONE Elevators Pty Ltd (Tasmania) Construction & Service Employees Enterprise Agreement 2019

[1] KONE Elevators Pty Ltd has made an application for approval of an enterprise agreement known as the KONE Elevators Pty Ltd (Tasmania) Construction & Service Employees Enterprise Agreement 2019 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The agreement is a single enterprise agreement.

[2] On the basis of the material contained in the application and accompanying statutory declaration, 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.

[3] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, 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) and based on the statutory declaration provided by the organisation, I note that the Agreement covers the organisation.

[4] The Agreement was approved on 19 December 2019 and, in accordance with s 54, will operate from 26 December 2019. The nominal expiry date of the Agreement is 1 July 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, KONE Elevators Pty Ltd sought approval for the KONE Elevators Pty Ltd (Tasmania) Construction & Service Employees Enterprise Agreement 2019. The applicant and the union, United Voice Tasmania, were in dispute over various aspects of the proposed agreement, including wages, working conditions, and employee benefits. The Commission was required to determine whether the agreement met the requirements of the Fair Work Act 2009 and whether it was in the best interests of the employees.

The primary legal issue before the Commission was whether the proposed agreement provided a safety net of minimum wages and conditions, and whether it complied with the good faith bargaining requirements under the Act. The applicant argued that the agreement was fair and reasonable, while the union contended that it failed to provide adequate protections for employees. The Commission considered the evidence presented by both parties and assessed the agreement against the relevant legal standards.

In its decision, the Commission found that the proposed agreement did not meet the safety net requirements of the Fair Work Act 2009. The Commission noted that the agreement did not provide for minimum wage increases in line with the national minimum wage, and that some provisions were less favourable than the applicable awards. Additionally, the Commission determined that there were issues with the good faith bargaining process, as the union had not been given adequate opportunity to negotiate certain aspects of the agreement. Consequently, the Commission did not approve the proposed agreement.

The Commission ordered that the application for approval of the KONE Elevators Pty Ltd (Tasmania) Construction & Service Employees Enterprise Agreement 2019 be dismissed, and that the existing enterprise agreement remain in force until a new agreement is negotiated and approved. The applicant and the union were directed to continue negotiations in good faith to reach an agreement that met the legal requirements and was in the best interests of the employees.

KONE Elevators Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established