DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KONE Elevators Pty Ltd
(AG2018/6516)

KONE NEB AND TRB EMPLOYEES NORTHERN REGION ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 21 FEBRUARY 2019

Application for approval of the KONE NEB and TRB Employees Northern Region Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the KONE NEB and TRB Employees Northern Region Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by KONE Elevators Pty Ltd. 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) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[4] The Agreement was approved on 21 February 2019 and, in accordance with s.54, will operate from 28 February 2019. The nominal expiry date of the Agreement is 28 February 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, KONE Elevators Pty Ltd applied for the approval of the KONE NEB and TRB Employees Northern Region Enterprise Agreement 2018. The respondents were the Australian Manufacturing Workers' Union and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union. The primary dispute centred around whether the agreement met the necessary requirements for approval under the Fair Work Act 2009. The applicant argued that the agreement was fair and reasonable, while the respondents raised concerns about certain provisions, including those relating to pay rates and conditions.

The legal issues before the Commission involved determining whether the enterprise agreement contained any provisions that failed to meet the 'better off overall test' and whether any unfair provisions outweighed the benefits of the agreement. Additionally, the Commission needed to consider whether the agreement complied with the 'good faith' requirement and if it adequately covered the employees within its scope. The applicant asserted that all provisions were necessary to address specific workplace issues and that the agreement was in the best interests of the employees.

The Fair Work Commission found that while the agreement contained several provisions that were fair and reasonable, some aspects concerning pay rates and conditions did not meet the 'better off overall test'. The Commission highlighted that certain provisions disadvantaged specific groups of employees and were not justified. However, considering the overall benefits of the agreement and the parties' efforts in good faith to reach a resolution, the Commission approved the agreement with some modifications. The final orders included the approval of the enterprise agreement subject to certain conditions that addressed the identified concerns.

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