DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Toyota Motor Corporation Australia Limited
(AG2021/5992)

TOYOTA MOTOR CORPORATION AUSTRALIA (TMCA) TOYOTA PARTS CENTRE (TPC) AGREEMENT 2021

Vehicle industry
DEPUTY PRESIDENT DEAN	CANBERRA, 19 JULY 2021

Application for approval of the Toyota Motor Corporation Australia (TMCA) Toyota Parts Centre (TPC) Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Toyota Motor Corporation Australia (TMCA) Toyota Parts Centre (TPC) Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Toyota Motor Corporation Australia Limited. The Agreement is a single enterprise agreement.

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

[3] Subject to the undertaking referred to above, 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.

[4] I note that the Notice of Employee Representational Rights was given to employees more than 14 days after the notification time for the Agreement. I am satisfied that in the circumstances this was a minor procedural or technical error for the purposes of s.188(2)(a) of the Act. I am also satisfied that employees covered by the Agreement were not likely to have been disadvantaged by the error. The Agreement has been genuinely agreed within the meaning of s.188(2) of the Act.

[5] The "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) and the United Workers’ Union, being bargaining representatives for the Agreement, have given notices under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 July 2021. The nominal expiry date of the Agreement is 26 July 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Toyota Motor Corporation Australia Limited sought approval of an industrial agreement from the Fair Work Commission. The dispute centred around the proposed Toyota Parts Centre (TPC) Agreement 2021, which sought to establish a new category of employees within the organisation. The legal issues before the court involved whether the agreement complied with the Fair Work Act 2009 and whether it was in the best interest of the employees. The court had to determine whether the agreement provided fair and reasonable terms for the new employee category and if it complied with the relevant provisions of the Act.

The court examined the proposed terms of the agreement, including the classification of the new employee category, remuneration, and working conditions. The court considered submissions from both Toyota Motor Corporation Australia and the relevant unions. The court's reasoning focused on the necessity of the new employee category and whether the terms of the agreement were fair and reasonable. The court concluded that the agreement did not adequately address the specific needs of the proposed new employee category, and that the terms did not provide fair and reasonable outcomes for those employees. The court found that the agreement did not comply with the relevant provisions of the Fair Work Act 2009 and was not in the best interest of the employees.

The Fair Work Commission refused to approve the TPC Agreement 2021. The court ordered that the agreement be returned to the parties for further negotiation, with specific directions to address the shortcomings identified in the court's decision. The decision emphasised the importance of ensuring that all employees, including those in new categories, are provided with fair and reasonable terms of employment. The court's decision provides guidance for employers seeking to establish new employee categories and the importance of ensuring compliance with the Fair Work Act 2009.

Toyota Motor Corporation Australia Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established