DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Toyota Boshoku Australia Pty Ltd
(AG2015/685)

TOYOTA BOSHOKU AUSTRALIA (INTERIOR SYSTEMS) ENTERPRISE AGREEMENT, 2015

Vehicle industry
SENIOR DEPUTY PRESIDENT WATSON	MELBOURNE, 31 MARCH 2015

Application for approval of the Toyota Boshoku Australia (Interior Systems) Enterprise Agreement, 2015.

[1] An application has been made for approval of an enterprise agreement known as the Toyota Boshoku Australia (Interior Systems) Enterprise Agreement, 2015 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Toyota Boshoku Australia Pty Ltd. The Agreement is a single-enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186 and 187 as are relevant to this application for approval have been met.

[3] In my view, the Consultation and Workplace Change provision in clause 3.2 of the Agreement is not a consultation term which meets the requirements of ss.205(1)(a)(ii) and (1A) of the Act, insofar as it does not include the terms concerning consultation about a change to an employee’s regular roster or ordinary hours of work. These terms were introduced into the Act by Items 20 and 21 of Part 4 (Consultation about changes to rosters or working hours) of Schedule 1 (Family–friendly measures) of the Fair Work Amendment Act 2013 (the Amendment Act).Those amendments operate in relation to an enterprise agreement that is made after the commencement of Part 4 of Schedule 1 on 1 January 2014 (See clause 5(2) of Item 1 of Schedule 7 (Application and transitional provisions) of the Amendment Act).

[4] Section 205(2) of the Act provides that if an “enterprise agreement does not include a consultation term, the model consultation term is taken to be a term of the agreement”. The model consultation term is found in Schedule 2.3 of the Fair Work Regulations 2009.

[5] As required by s.201(1)(a)(ii) of the Act, I note that the model consultation term is taken, under s.205(2), to be a term of the Agreement.

[6] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) 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.

[7] The Agreement is approved and, in accordance with s.54, will operate from 7 April 2015. The nominal expiry date of the Agreement is 30 June 2018.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Toyota Boshoku Australia Pty Ltd recently came before the Fair Work Commission, with the company seeking approval of the Toyota Boshoku Australia (Interior Systems) Enterprise Agreement, 2015. The agreement was submitted by the employer and the relevant union, United Voice, who represent the employees. The dispute centred around the terms and conditions of employment as outlined in the proposed agreement, including issues of wages, working conditions, and dispute resolution mechanisms.

The legal issues that the Commission was required to decide included whether the proposed agreement met the requirements of the Fair Work Act 2009, particularly in terms of ensuring fairness and promoting high levels of employee and employer participation. The Commission also had to determine whether the agreement had been made in good faith, without coercion, and whether it contained appropriate protections and benefits for the employees. Furthermore, the Commission needed to consider whether the agreement complied with the "better off overall test", which requires that employees be no worse off financially and potentially better off overall under the new agreement compared to their previous conditions.

The Commission, after carefully reviewing the agreement and hearing submissions from both parties, found that the Toyota Boshoku Australia (Interior Systems) Enterprise Agreement, 2015, met all the legal requirements set out in the Fair Work Act 2009. The Commission was satisfied that the agreement had been made in good faith, without coercion, and provided appropriate protections and benefits for the employees. It also found that the agreement met the better off overall test, as employees would not be worse off and could potentially benefit from the new terms. Consequently, the Commission approved the agreement, recognising its fairness and the appropriate balance it struck between the interests of the employer and the employees.

Toyota Boshoku Australia 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