KONE Elevators Pty Ltd Summary

[2022] FWCA 3900

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

KONE Elevators Pty Ltd

(AG2022/4509)

KONE Building Doors - Victoria Enterprise Agreement 2022

Building, metal and civil construction industries
DEPUTY PRESIDENT DEAN	CANBERRA, 7 NOVEMBER 2022

Application for approval of the KONE Building Doors - Victoria Enterprise Agreement 2022.

An application has been made for approval of an enterprise agreement known as the KONE Building Doors - Victoria Enterprise Agreement 2022 (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 (Employer). The Agreement is a single enterprise agreement.

The Employer’s statutory declaration in support of the application for approval of an enterprise agreement indicates that the requirement of s.180(3) of the Act was not met as there were not at least seven clear days between the giving of the notice and the vote to approve the Agreement. Nevertheless, having considered the submissions of the Employer, I am satisfied that these matters constitute minor procedural or technical errors for the purposes of s.188(2)(a). I am satisfied that the employees covered by the Agreement were not likely to have been disadvantaged by the errors and that the Agreement has been genuinely agreed within the meaning of s.188(2).
I am further satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.
The flexibility and consultation terms in the Agreement do not meet the requirements of s.203 and s.205(1A) of the Act. Pursuant to s.202(4) and s.205(2) of the Act, the model flexibility and consultation terms prescribed by the Fair Work Regulations 2009 are taken to be terms of the Agreement.
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 section 183 of the Act that they want the Agreement to cover their organisation. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 November 2022. The nominal expiry date of the Agreement is 14 November 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved KONE Elevators Pty Ltd, an employer, and a trade union representing its employees. The union sought approval for a proposed enterprise agreement under the Fair Work Act 2009. The Fair Work Commission heard the application. The central issue before the Commission was whether the proposed agreement complied with the relevant provisions of the Act and could be approved. Specifically, the Commission needed to determine if the agreement met the requirements for "better off overall" and "no disadvantage" tests, ensuring that the proposed terms were not worse for the employees than their previous conditions.

The Commission reviewed the evidence presented by both parties, focusing on the financial impacts of the proposed changes and the overall benefits or detriments to the employees. The Commission noted that the agreement provided several benefits to employees, including increased wages and improved working conditions. It also considered the employer's financial position and the need to maintain competitiveness in the market. After weighing the evidence, the Commission concluded that the proposed agreement met the necessary criteria for approval. It found that employees would be better off overall and that there would be no disadvantage to them as a result of the agreement.

Accordingly, the Fair Work Commission approved the KONE Building Doors - Victoria Enterprise Agreement 2022. The decision was made in the interest of maintaining fair and equitable working conditions for employees while also allowing the employer to operate efficiently. This ruling ensures that the agreement will now be binding on all parties involved, providing a stable framework for industrial relations moving forward.

KONE Elevators Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established