Australian Rail, Tram and Bus Industry Union v KDR Victoria Pty Ltd T/A Yarra Trams (No.2)

The Australian Rail, Tram and Bus Industry Union (the Union) brought proceedings against KDR Victoria Pty Ltd, trading as Yarra Trams (Yarra Trams), concerning alleged contraventions of the *Fair Work Act 2009* (Cth) (the Act). The dispute centred on Yarra Trams' alleged failure to provide the Union with a reasonable opportunity to consult with employees regarding proposed changes to their working arrangements, specifically concerning the introduction of new tram models and associated operational changes. The matter came before Judge Riley of the Federal Court of Australia.

The primary legal issue before the Court was whether Yarra Trams had contravened section 354 of the Act, which mandates that an employer must provide an employee organisation with a reasonable opportunity to consult with employees about proposed changes that are likely to have a significant effect on the employees' duties, operations, or organisation. The Court was required to determine what constituted a "significant effect" in the context of the proposed changes and whether Yarra Trams had afforded the Union a "reasonable opportunity" to consult.

Judge Riley found that Yarra Trams had contravened section 354 of the Act. The Court reasoned that the introduction of new tram models and the associated operational changes would inevitably lead to significant effects on the duties and operations of Yarra Trams' employees, including drivers and maintenance staff. The Court determined that Yarra Trams had failed to provide the Union with adequate notice or a genuine opportunity to engage in meaningful consultation prior to making decisions about these changes, thereby breaching its statutory obligation.