Konecranes and Demag Pty Ltd T/A Konecranes

[2021] FWCA 6683

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Konecranes and Demag Pty Ltd T/A Konecranes
(AG2021/8007)

KONECRANES AND DEMAG PTY LTD NORTH WEST SERVICE BRANCH ENTERPRISE AGREEMENT 2021

Manufacturing and associated industries
DEPUTY PRESIDENT BEAUMONT	PERTH, 12 NOVEMBER 2021

Application for approval of the Konecranes and Demag Pty Ltd North West Service Branch Enterprise Agreement 2021

[1] Konecranes and Demag Pty Ltd T/A Konecranes has made an application for the approval of an enterprise agreement known as the Konecranes and Demag Pty Ltd North West Service Branch Enterprise Agreement 2021 (the Agreement). The application was made under s 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] In compliance with s 190(4) of the Act, the bargaining representative’s views regarding the undertakings proffered were sought. They were provided with the opportunity to raise and address any objections they had to the undertakings proffered by the Applicant. No objection was raised.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of ss 186, 187, 188, and 190 as are relevant to this application for approval have been met.

[5] The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the organisation),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 declaration provided by the organisation, I note that the organisation is covered by the Agreement.

[6] The Agreement was approved on 12 November 2021 and, in accordance with s 54, will operate from 19 November 2021. The nominal expiry date of the Agreement is 31 August 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves an application for the approval of an enterprise agreement between Konecranes and Demag Pty Ltd, trading as Konecranes, and their employees in the North West Service Branch. The application was brought before the Fair Work Commission, the body responsible for regulating workplace relations in Australia.

The primary legal issue the commission had to address was whether the proposed enterprise agreement met the requirements of the Fair Work Act 2009. This included ensuring the agreement was made in good faith and covered all necessary procedural fairness, particularly in relation to the consultation process with the employees. Additionally, the commission needed to assess if the agreement complied with the "better off overall test," which requires that the terms and conditions of employment under the new agreement must not be less favourable than those under the previous agreement or the relevant award.

The Fair Work Commission found that the application met all necessary legal requirements. The evidence presented demonstrated that the agreement was made in good faith and that the consultation process was adequate and procedurally fair. The commission also concluded that the new agreement was better off overall for the employees, as it improved several aspects of their employment conditions. Consequently, the commission approved the enterprise agreement, recognising its benefits for the employees and the fairness of its creation.

The Fair Work Commission approved the Konecranes and Demag Pty Ltd North West Service Branch Enterprise Agreement 2021, affirming its compliance with all statutory requirements and its overall benefit to the employees.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established