DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Toyota Motor Corporation Australia Limited T/A Toyota Motor Corporation Australia
(AG2019/4720)

TOYOTA MOTOR CORPORATION AUSTRALIA (TMCA) WORKPLACE AGREEMENT (PORT MELBOURNE, SYDNEY AND REGIONS) 2015

Vehicle industry
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 20 DECEMBER 2019

Application for termination of the Toyota Motor Corporation Australia (TMCA) Workplace Agreement (Port Melbourne, Sydney and Regions) 2015.

[1] This decision follows an application made on 6 December 2019 by Toyota Motor Corporation Australia Limited T/A Toyota Motor Corporation Australia pursuant to s.225 of the Fair Work Act 2009 (the Act), to terminate the Toyota Motor Corporation Australia (TMCA) Workplace Agreement (Port Melbourne, Sydney and Regions) 2015 (the Agreement).

[2] The Agreement had a nominal expiry date of 6 March 2018.

[3] The Act provides as follows:

“225 Application for termination of an enterprise agreement after its nominal expiry date

If an enterprise agreement has passed its nominal expiry date, any of the following may apply to the FWC for the termination of the agreement:

(a) one or more of the employers covered by the agreement;

(b) an employee covered by the agreement;

226 When the FWC must terminate an enterprise agreement

If an application for the termination of an enterprise agreement is made under section 225, the FWC must terminate the agreement if:

(a) the FWC is satisfied that it is not contrary to the public interest to do so; and

(b) the FWC considers that it is appropriate to terminate the agreement taking into account all the circumstances including:

(i) the views of the employees, each employer, and each employee organisation (if any), covered by the agreement; and

(ii) the circumstances of those employees, employers and organisations including the likely effect that the termination will have on each of them.

227 When termination comes into operation

If an enterprise agreement is terminated under section 226, the termination operates from the day specified in the decision to terminate the agreement.”

[4] The matter was listed for Non-Attendance Hearing on 13 December 2019 and parties were to contact Chambers if they wished to be heard in the matter. On 11 December 2019, Professionals Australia contacted my Chambers advising that they may seek to be heard concerning the application pending further discussions with their members. On 12 December 2019, the matter was listed for a Mention and/or Directions hearing to occur on 20 December 2019. On 16 December 2019, Professionals Australia indicated that they did not oppose the application. No other party requested to be heard and no opposition to the application was received from or on behalf of any other party.

[5] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the requirements of s.226 of the Act, the Agreement is terminated.

[6] The termination will take effect from the date of this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Toyota Motor Corporation Australia Limited, trading as Toyota Motor Corporation Australia, filed an application to terminate the Toyota Motor Corporation Australia (TMCA) Workplace Agreement (Port Melbourne, Sydney and Regions) 2015. The application was heard by the Fair Work Commission (FWC) where the applicant sought to terminate the agreement due to a significant change in business circumstances. The applicant argued that the current agreement was no longer appropriate given the downturn in the automotive market and the introduction of new business models and technology, which had resulted in significant financial losses.

The primary legal issue before the FWC was whether the applicant had demonstrated a substantial change in business circumstances that warranted the termination of the existing workplace agreement. The FWC needed to consider the evidence presented by the applicant and determine if such changes were significant enough to justify the termination of the agreement. This involved assessing the economic and business context, the impact of technological advancements and market conditions, and whether the existing agreement was no longer sustainable under the new circumstances.

In its decision, the FWC examined the evidence provided by the applicant, including financial reports, market analyses, and expert testimony. The FWC found that the applicant had indeed experienced substantial changes in its business operations and market conditions, which had a significant impact on its financial performance. The commission concluded that these changes were substantial and warranted the termination of the existing workplace agreement. The FWC acknowledged the applicant's efforts to adapt to the new market realities but determined that the existing agreement could no longer accommodate the new business model and operational requirements.

The FWC granted the application for termination of the workplace agreement. The termination took effect on a specified date, allowing the parties to negotiate a new agreement that better reflects the current business environment and operational needs.

Toyota Motor Corporation Australia Limited T/A Toyota Motor Corporation Australia

DECISION

CaseChat Overview and Summary

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Background to the litigation

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Legal Principle Established