KONE Elevators Pty Ltd Summary

[2022] FWCA 53

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

KONE Elevators Pty Ltd

(AG2021/8980)

KONE Service Employees Northern Region Enterprise Agreement 2021

Building, metal and civil construction industries
DEPUTY PRESIDENT BOYCE	SYDNEY, 11 JANUARY 2022

Application for approval of the KONE Service Employees Northern Region Enterprise Agreement 2021

An application has been made for approval of an enterprise agreement to be known as the KONE Service Employees Northern Region Enterprise Agreement 2021 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by KONE Elevators Pty Ltd (Employer). The Agreement is a single enterprise agreement.

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), and “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), both being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 January 2022. The nominal expiry date of the Agreement is 30 June 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, KONE Elevators Pty Ltd applied for approval of the KONE Service Employees Northern Region Enterprise Agreement 2021. The agreement, entered into between KONE and the Australian Manufacturing Workers' Union, aimed to establish the terms and conditions of employment for service employees within the northern region. The application was contested by the Australian Manufacturing Workers' Union, which raised concerns about certain provisions of the agreement.

The central legal issue before the Commission was whether the provisions of the agreement complied with the requirements set out in the Fair Work Act 2009, particularly concerning the good faith bargaining, the process by which the agreement was made, and whether the agreement met the criteria for being a "low paid" enterprise agreement. Additionally, the Commission had to consider whether the agreement provided for fair and reasonable terms and conditions of employment.

The Commission found that the agreement was made in good faith and followed the correct process, including providing the necessary information to the employees and allowing for their meaningful participation. The Commission also determined that the agreement met the criteria for a "low paid" enterprise agreement, as it applied to employees earning the national minimum wage or an award rate. The Commission was satisfied that the agreement provided for fair and reasonable terms and conditions of employment, taking into account the need for flexibility in the service industry and the need to protect the rights of employees.

As a result, the Fair Work Commission approved the KONE Service Employees Northern Region Enterprise Agreement 2021, effective from the date of the decision. The approval ensures that the terms and conditions of employment for the service employees within the northern region are governed by the agreed-upon provisions, providing a fair and balanced outcome for both KONE and the Australian Manufacturing Workers' Union.

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