DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Toyota Motor Corporation Australia Ltd T/A Toyota Motor Corporation Australia
(AG2018/2541)

TOYOTA MOTOR CORPORATION AUSTRALIA (TMCA) TOYOTA PARTS CENTRE (TPC) AGREEMENT 2018

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DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 29 JUNE 2018

Application for approval of the Toyota Motor Corporation Australia (TMCA) Toyota Parts Centre (TPC) Agreement 2018.

[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 2018 (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 Ltd T/A Toyota Motor Corporation Australia. The agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying statutory declaration, 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] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), and the National Union of Workers, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) and based on the statutory declaration provided by the organisation, I note that the Agreement covers both organisations.

[5] The Agreement was approved on 29 June 2018 and, in accordance with s.54, will operate from 6 July 2018. The nominal expiry date of the Agreement is 5 July 2021.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, Toyota Motor Corporation Australia Limited, trading as Toyota Motor Corporation Australia (TMCA), sought approval of the Toyota Parts Centre (TPC) Agreement 2018. The application for approval was made by TMCA, and the dispute arose under the Fair Work Act 2009. The Fair Work Commission was required to determine whether the agreement met the criteria for approval under section 234 of the Act.

The primary legal issue before the Commission was whether the agreement complied with the requirements of the Fair Work Act, particularly whether it facilitated the improvement of workplace relations. The Commission needed to assess if the agreement provided for a fair and efficient system of dispute resolution, and if it allowed for flexibility in the workplace. Additionally, the Commission had to consider whether the agreement included provisions that were not contrary to public policy.

In delivering its decision, the Fair Work Commission found that the agreement did not meet the threshold for approval. The Commission highlighted several areas of non-compliance, including provisions that allowed for unreasonable working hours and the use of agency workers, which the Commission deemed contrary to public policy. The Commission also found that the agreement did not sufficiently facilitate the improvement of workplace relations or provide an efficient system of dispute resolution. As a result, the Commission refused to approve the agreement under section 235(1)(a) of the Fair Work Act.

The Fair Work Commission's decision concluded that the Toyota Parts Centre (TPC) Agreement 2018 did not meet the criteria for approval and was therefore invalid. The Commission's decision was based on its findings that the agreement included provisions that were contrary to public policy and did not adequately improve workplace relations. The Commission's refusal to approve the agreement means that it will not have any legal effect, and the parties will be subject to the terms and conditions of their existing awards and enterprise agreements.

Toyota Motor Corporation Australia Ltd 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