Commission (FWC)-approved agreements or awards determined by the FWC.
Over 100 awards remain, covering about 20 per cent of employees. All enterprise
bargains require the approval of the FWC, and the FWC can‘order’bargaining
which could be construed as compulsory arbitration in a different guise.
Despite the claims of the government that the FWC was to be an independ-
ent arbiter, the FWC was (and still is) heavily loaded in favour of organized
labour. This was made obvious by the appointment, by then industrial rela-
tions minister, Julia Gillard, offive commissioners, out of a total of six, with
union backgrounds.
The Rudd government changes represented a significant reregulation of the
labour market compared to the Howard days. Indeed, in most respects the
labour market had become more regulated than it had been under the Hawke/
Keating reforms.
A case which exemplifies the absurdity of the current system of‘bargain-
ing’is that of Toyota’s automotive manufacturing enterprises in Australia. In
2013 Toyota sought to make changes to an enterprise agreement with its
3,000 employees at the Altona plant in south-west Melbourne to offset a
proposed pay rise. Under the agreement, due to expire in March 2015,
neither Toyota nor the unions could make any further claims in relation
to wages or other terms and conditions before 2015. Among the proposed
changes was a reduction in the minimum Christmas shutdown period from
twenty-one days to eight days, and, instead of employees being required to
be available to work a maximum twenty hours overtime each month, they
were to be available to work a minimum of twenty hours overtime each
month. Toyota also wanted to do away with certain payments including
‘respiratory’allowances,‘dirty money’allowances, and‘new competency
skill’payment.
Toyota planned to put the new deal to a ballot of all employees which, given
the chronic unprofitability of Toyota Australia and the mortal state of car
manufacturing in Australia, was almost certain to be passed. The Australian
Manufacturing Workers Union (AMWU) opposed the changes and sought to
stop the ballot. Justice Mordy Bromberg ruled that the variations sought by
Toyota were ‘significant’and that Toyota was trying to make additional
claims. He ruled that in doing so, Toyota breached the workplace agreement
and contravened the Fair Work Act. Justice Bromberg said the only way new
wages and conditions can be introduced is if both parties choose to do so.
However, the‘parties’clearly only included the AMWU and did not include
the Toyota workers. Justice Bromberg ruled that the ballot of employees could
not go ahead.
The decision put further pressure on Toyota continuing to operate. In 2014
Toyota announced its decision to cease operations as the sole remaining
vehicle manufacturer in Australia, with the loss of over 2,500 jobs.
Australia’s Industrial Relations Singularity