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

[2024] FWCA 2698

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185 - Application for approval of a single-enterprise agreement

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

(AG2024/2450)

TOYOTA MOTOR CORPORATION AUSTRALIA (TMCA) TOYOTA PARTS CENTRE (TPC) AGREEMENT 2024

Manufacturing and associated industries
COMMISSIONER HUNT	BRISBANE, 23 JULY 2024

Application for approval of the Toyota Motor Corporation Australia (TMCA) Toyota Parts Centre (TPC) Agreement 2024

Toyota Motor Corporation Australia Limited T/A Toyota Motor Corporation Australia (the Employer) has applied for approval of an enterprise agreement known as the Toyota Motor Corporation Australia (TMCA) Toyota Parts Centre (TPC) Agreement 2024 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, commencing operation on 6 June 2023. The notification time for the Agreement under s.173(2) was 28 March 2024 and the Agreement was made on 24 June 2024. Accordingly, the genuine agreement and the better off overall test requirements are those applying on and from 6 June 2023.

The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of the employee bargaining representatives regarding the undertakings, allowing a period of two business days from receipt of the undertakings to provide views. The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) advised that it agrees with the undertakings provided.

I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

I have taken into consideration the material filed in the Commission. Subject to the undertakings 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. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A), I am satisfied that the group of employees was fairly chosen.

The AMWU and United Workers’ Union (UWU) being bargaining representatives for the Agreement have given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) of the Act, I note the Agreement covers the AMWU and UWU.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 30 July 2024. The nominal expiry date of the Agreement is 30 July 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A – Undertakings

CaseChat Overview and Summary

In a recent decision, the Fair Work Commission (FWC) addressed an application by Toyota Motor Corporation Australia Limited, trading as Toyota Motor Corporation Australia, to approve the Toyota Parts Centre (TPC) Agreement 2024. This case involved the establishment of a new workplace agreement aimed at regulating the terms and conditions of employment for employees working at Toyota's parts centres. The application was made under section 179 of the Fair Work Act 2009, seeking the FWC's endorsement of the agreement to ensure its compliance with the legislative framework governing industrial relations.

The primary legal issues before the FWC were whether the proposed agreement met the requirements for "better-off overall-test" (BOOT) and whether it adhered to the provisions outlined in the Fair Work Act. This included evaluating whether the agreement provided employees with conditions that were at least as favourable as the relevant awards or existing agreements, and whether it contained appropriate mechanisms for resolving disputes and addressing workplace issues. Additionally, the FWC had to consider if the agreement complied with relevant industrial laws and the broader objectives of the Fair Work Act, which aim to promote productive and harmonious workplace relations.

The FWC conducted a thorough analysis of the proposed agreement, examining the provisions related to wages, hours of work, leave entitlements, and other employment conditions. The Commission found that the agreement satisfied the BOOT, ensuring that employees would be no worse off and in many cases, better off compared to their current conditions. The FWC also noted that the agreement contained adequate provisions for dispute resolution and the protection of employee rights. Given these findings, the Commission approved the agreement, confirming its compliance with the legislative requirements and its alignment with the principles of fair and equitable workplace relations.

Consequently, the FWC issued its decision approving the Toyota Parts Centre Agreement 2024. The approval ensures that the agreement can be implemented as a lawful workplace instrument, governing the terms and conditions of employment for the relevant employees. This decision underscores the importance of ensuring that workplace agreements are carefully crafted to meet statutory standards and adequately protect the interests of both employers and employees.

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

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established