DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Toyota Motor Corporation Australia Limited T/A Toyota Motor Corporation Australia
(AG2019/4719)

TOYOTA MOTOR CORPORATION AUSTRALIA (TMCA) WORKPLACE AGREEMENT (ALTONA) 2015

Vehicle industry
DEPUTY PRESIDENT HAMILTON	MELBOURNE, 20 DECEMBER 2019

Application for termination of the Toyota Motor Corporation Australia (TMCA) Workplace Agreement (Altona) 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 (Altona) 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. No party requested to be heard and no opposition to the application was received from or on behalf of any parties.

[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

The applicant, Toyota Motor Corporation Australia Limited trading as Toyota Motor Corporation Australia, applied to the Fair Work Commission for the termination of a workplace agreement, the Toyota Motor Corporation Australia (Altona) 2015. The agreement was entered into with a group of employees known as the "TMCA Award Free Employees", who were employed in roles covered by the Motor Vehicle Manufacturing Award 2020. The application was based on the assertion that the agreement no longer met the requirements for an enterprise agreement under the Fair Work Act 2009, as the employees were now covered by a different award.

The central legal issue before the Commission was whether the workplace agreement was still eligible to remain in force as an enterprise agreement, given the change in the employees' award classification. Specifically, the Commission had to determine whether the agreement could continue to operate as an enterprise agreement under section 173 of the Fair Work Act, or if it should be terminated as it no longer met the criteria for such agreements.

In delivering its decision, the Commission noted that the workplace agreement was initially certified as an enterprise agreement but had not been recertified since the employees transitioned to a different award classification. The Commission considered the provisions of the Fair Work Act, which stipulate that an enterprise agreement must continue to meet the criteria for such agreements. Given that the employees were now covered by the Automotive, Metal and Engineering Manufacturing Award 2020, the Commission found that the agreement did not meet the current requirements for an enterprise agreement. Consequently, the Commission determined that the agreement should be terminated. The Fair Work Commission ordered the termination of the Toyota Motor Corporation Australia (Altona) 2015 workplace agreement, effective from the date of the decision.

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

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established