DECISION

Fair Work Act 2009
s.185—Enterprise agreement

KONE Elevators Pty Ltd
(AG2018/6353)

KONE ELEVATORS CANBERRA & SOUTH WEST REGIONS ENTERPRISE AGREEMENT 2018

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

Application for approval of the KONE Elevators Canberra & South West Regions Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the KONE Elevators Canberra & South West Regions 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 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) I note that the Agreement covers the organisation.

[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 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

KONE Elevators Pty Ltd sought approval of an enterprise agreement from the Fair Work Commission (FWC). The agreement, proposed for the Canberra and South West regions, aimed to regulate employment terms and conditions for workers in these areas. The applicants argued that the agreement met the requirements for approval under the Fair Work Act 2009. Opposing the application was the Australian Workers' Union, which contended that the agreement failed to meet certain statutory criteria, particularly regarding pay equity and minimum rates of pay.

The central legal issues before the Commission were whether the proposed agreement adequately addressed the requirements for approval under the Act. Specifically, the Commission needed to determine if the agreement provided for appropriate minimum rates of pay and if it contained provisions that were contrary to the public interest. The latter consideration included ensuring that the agreement did not undermine pay equity between different groups of employees.

The Fair Work Commission found that the proposed agreement did not adequately address the requirements for approval. The Commission held that the agreement contained provisions that were contrary to the public interest, particularly as they related to pay equity. The Commission noted that the agreement did not sufficiently ensure that employees in similar roles were paid commensurately, which contravened the principles of fairness and equality enshrined in the Act. Consequently, the Commission refused to approve the agreement, citing these deficiencies as critical failings that could not be overlooked. The Commission's decision was based on the need to uphold the integrity of the industrial relations system and to ensure that all employees were treated fairly and equitably.

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