The Toyota Workplace Agreement 2011

Recall the year – 2011.  The car industry was already in trouble worldwide.

But still the Toyota workers staged a five day strike and banned overtime to secure an OTT agreement.  What were they thinking.

And here was the outcome –  pay rises under the agreement:

  • 6.9.2011         2%
  • 1.4.2012        2.5%
  • 1.4.2013         3.25%
  • 1.4.2014         3.25%
  • 6.9.2014         2%

Yes, that’s right, the workers at Toyota are getting two pay rises this year, putting them well above inflation.

But that’s not all: there are all those funny allowances: dirt, height, confined space, etc.

Weirdly, I can’t see what the workers will get in the event of the closure of the factory.  It looks at though this will be up to negotiation with the unions.

119.1 Compulsory Redundancy
Should the necessity for a compulsory separation program become apparent TMCA and Union will have further negotiations
which will deal with the following issues:
• Notice period
• Redundancy
• Employee support mechanisms
• Continuity of operations

Presumably, the Voluntary Redundancy clause is the minimum base from which negotiations will occur.  The entitlements are:

  • 4 weeks notice;
  • 3 weeks separation pay for every year of service up to a maximum of 75 weeks;
  • Shift premium applied to separation pay;
  • 20 days of unused sick/carer’s leave paid out.

There was an occurrence in 2012 which really should have put the wind up the workers and unions.  In that year, Toyota tapped 350 workers on the shoulder for redundancy according to their workplace attendance and performance (sickies have been a real problem at the plant).  And among those tapped on the shoulder were some shop stewards.

Of course, the union was incensed.  For them, the only rule that makes sense is “last in, first off”.

I’m not sure what happened in the end, but there was a sign there: Toyota was becoming exasperated.

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61 Responses to The Toyota Workplace Agreement 2011

  1. Rodney

    One moral of this story is that employers in future would be most unwise to take on former employees of car manufacturers.

  2. Infidel Tiger

    One moral of this story is that employers in future would be most unwise to take on former employees of car manufacturers.

    You’d be absolutely mad to hire anyone from a unionised background.

  3. PEB

    I think that the AMWU did their best to destroy their members’ jobs. In medical terms it’s no use if the parasite kills the host, then the parasite dies as well. Not that the union is a parasite, that’s an insult to parasites.

  4. Angus Black

    I don’t really see why compulsory redundancy provisions should be better than voluntary redundancy provisions – after all, Voluntary Redundancy is a way of persuading someone the organisation wants rid of, but can’t easily sack, to go away … it is go away money.

    When the factory closes, the employer can just tell the employees to go. Why should Toyota pay more than the minimum required by law unless they are going to get something in return?

  5. harrys on the boat

    To paraphrase IT………..

    “In a fair and well ordered society, all Ford, Holden and Toyota union workers would be executed with maximum prejudice.”

    I concur, IT.

  6. Habib

    This is probably the worst labour market in the world they’ve ever had to deal with, along with the most half-witted succesion of governments, each sticking more costs and regulation on when elected.

    They’re probably astounded as to how they didn’t wind up in Moresby in ’42.

  7. Fred Lenin

    Years ago ,before the inept alp kibner mob broke Victoria the old SEC used to “train” Tradespeple,it was well known around Gippsland private businesses would not employ them they would bring very bad union habits with them ,also they had never been taught to WORK,they were the laziesrpt people around,we used to call them “Statues”,they didnt move a lot.!

  8. Up The Workers!

    Does anybody know the value of the total salary package of the boss of the union?

    How many hundreds of thousands is THAT ‘ A.L.P. workingman’s friend’ getting?

    Every single member of any union who loses his or her livelihood through the greed and stupidity of the unions, should get AT LEAST the last 5 years extortionate union “dues” refunded in full.

    Rather than ‘protecting’ the jobs of union members, these wallet-stuffing union incompetents have COST their members their jobs.

    If you paid good money to a mechanic to fix your car, and he botched it, you’d damn well want your money refunded in full.

    Just because the incompetent is a wallet-stuffing crook of an A.L.P. union boss, doesn’t excuse him from having to refund cash to those he has scammed and cheated.

    You can bet the crooked union boss still has all of his lurks, perks, schemes and scams long after those whose pockets he was picking, joined the end of the dole queue.

  9. mattr

    Just had a Toyota employee in the office claiming they won..
    Given his age he is happy that the show is over, told him it would be a good idea to cancel his union membership tomorrow.
    No use paying that for the next 3 years

  10. Pat Warnock

    Union stupidity rules!

  11. steve

    At the moment there are so many chickens trying to come home that there is not enough room for all of them to roost.
    This is the first time in my memory that the conservative government has been able to attack the unions without the public perception that it is attacking the wages and conditions of every man, woman.
    Think about it this way, what would the public reaction to the workchoice scare campaign that won Labor the 2007 and 2010 elections be if it were run today. There is a tangible taint on unions. If I were an optimist, I might hope that there is a chance of some real reform here. At the very least the power of the unions to racketeer should be diminished.

  12. Such a shame Toyota don’t have the whatsies to publicly lay the blame where it truly belongs.

  13. hzhousewife

    One moral of this story is that employers in future would be most unwise to take on former employees of car manufacturers.

    I am acquainted with a wuuurker ex the Desal plant in Vic.
    He was pretty sure that he would walk in to job up on the NorthWest shelf.
    Unemployment has gone on much longer than he originally expected,
    despite him contacting every old union maaaate he can find.

  14. Carpe Jugulum (don't call me sven) HenchCritter

    Does anybody know the value of the total salary package of the boss of the union?

    No i don’t – but organisers usually get $80K + car + position on a super board ($120K), plus external income.

    You’d be suprised how many of these guys have wives/friends with printing or emroidering companies, funny that some builders supply shirts with the project, company name and union logo on them.

    Add to that if a builder puts a coke machine on site the cfmeu gets a cut of that from CCA and of course lets not forget the CFMEU also does a deal with OPSM for ‘referring’ customers.

  15. Des Deskperson

    ‘Toyota tapped 350 workers on the shoulder for redundancy according to their workplace attendance and performance (sickies have been a real problem at the plant). ‘

    WTF!! redundancy isn’t about performance management. I’ve always understood that redundancy payments were intended to be made in circumstances where employees have to be terminated as a result of circumstances beyond their control, not because of laziness or incompetence, which should merit a simple sacking.

    I’m aware that in the public sector, employees are routinely given packages when they should be sacked without benefit, but I’ve always attributed it to weak and incompetent management cushioned by the fact that there’s always lots of taxpayers money to throw about.

    I’m surprised, though perhaps I shouldn’t be, that it’s apparently also common practice in the private sector.

  16. Ant

    This redundancy business is little more than a racket – voluntary or compulsory.

    Lavish redundancies are highly counterproductive as they do the exact opposite to encouraging “workers” to fight to retain their jobs and keep factories open.

    There’s more in it for these bludgers to see the factory shut down. In some cases, the redundancies appear to be so outrageous that they’re akin to winning Tatts.

    Next, they’ll be demanding that the government steps in to subsidise the racket.

    Australia doesn’t deserve these kinds of high quality manufacturing jobs.

    We’re just too bloody stupid to make them viable.

  17. johninoxley

    Nothing so sweet as a unionist getting the sack.

  18. tomix

    Perhaps i’m imagining things, but the deindustrialisation of Australia seems to have gathered speed since the amalgamation of the smaller unions in the days of Hawke.

  19. Rohan

    But that’s not all: there are all those funny allowances: dirt, height, confined space, etc.

    Judith, I’m not arguing with the rest of the article. The EBA is ridiculous on nearly every grounds listed. However, confined space entry is dangerous work by nature. You have limited access in/out of the space and the potential for an environment unable to support life is very real. You can be overcome by fumes/lack of oxygen and die within 10-20 seconds to name but one outcome. I don’t have issues with a risk allowance for this type of work.

    I’ve written confined space entry procedures, and they’re a nightmare at the best of times. It’s avoided unless absolutely necessary.

    Work at height is also risky, though is generally more controllable than confined spaces. This allowance is borderline I’ll agree.

  20. Mike

    Tried to read the Toyota EBA I now realise such workers would need to be Rhodes Scholars or just plain cuckoo. What a load of hogwash. just shows how smart arse labor lawyers have left their mark on a company who just wanted to make cars. bet not one worker in the factory have ever read it

  21. jumpnmcar

    The PMI tells the story.
    3rd graph from the top, wages and inputs rising but selling price dropping.
    Same for PSI and PCI.
    All here at AIG
    Ignore election dates, they’re synergy with the graphs is just coincidental /sarc.

  22. jumpnmcar

    “synergy ” may not be the correct word, but ya know what I mean.

  23. pseudonym

    Des,

    It’s often the case that mass lay-offs are dressed up as so-called “redundancies” for income tax reasons.

    In the true sense, a “redundancy” refers to a situation where the position is no longer required by the employer. As an example, if you shut down a warehouse and you no longer need any fork-lift drivers, then the relevant employees are “redundant”. However, if you just want to sack some of your fork-lift drivers for incompetence or dishonesty, that’s not a “redundancy” as such.

    Due to the tax breaks, however, many people are said to be “redundant”, even when that’s not truly the case.

    The Australian Taxation Office, being the leftist organisation that it is, tends to turn a blind eye to all this.

  24. Mon

    Thank you for that information.
    Question Time 11.02.14. Listening to Shorten and what he had to say, like playing Bridge, you have to find a fit, and his fit is the thuggy set, my he is a rude number

  25. Leo G #1186038, posted on February 11, 2014 at 5:12 pm

    The Mordy fingers writs, and having writ moves next on whom?

    Moves on: nor all your Piety nor Wit
    Shall lure it back to cancel half a Line,
    Nor all your Tears wash out a Word of it

    – Omar Khayyam

  26. Leigh Lowe

    Judith, I’m not arguing with the rest of the article. The EBA is ridiculous on nearly every grounds listed. However, confined space entry is dangerous work by nature. You have limited access in/out of the space and the potential for an environment unable to support life is very real. You can be overcome by fumes/lack of oxygen and die within 10-20 seconds to name but one outcome. I don’t have issues with a risk allowance for this type of work.

    That’s bullshit Rohan.
    The employer (and employee for that matter) have an obligation to minimise risk of death, not compensate for taking risks. When was the last time someone died in a confined space accident in a major plant like Toyota?
    Now we come to paying an allowance for wearing hot or uncomfortable PPE.
    Well, that is horseshit too.
    We are basically paying a premium for someone doing something a little unpleasant for a small amount of their worktime.
    Helloooo.
    We all have shitty elements to our jobs. Most of us just suck it up for the regular rate of pay, or fuck off and do something else.

  27. HK_Brother

    Judith says…

    What were they thinking.

    They weren’t. When one is incensed with more and more benefits, one completely loses the foresight that they’re killing the Goose that lays the Golden Eggs. Ain’t life grand when one is an ALP Industrial lawyer from companies like slugs and grubs? aka: Slater and Gordan.

    Entitlement unionism doesn’t incentivise workers to find better ways, to better themselves, or even understanding the potential problem of no longer having a job if they demand too much. The goal is to demand and threatened to strike in order to get their way…A blunt instrument of the Industrial Age.

    For too long, big unions believed governments (regardless Labor or Liberal), would pay whatever it took to avoid the political fallout from a closure. And for too long, many governments have been following this trend.

    Like their ALP friends, the unions underestimated Abbott in drawing a line in the sand and saying “No MORE!”

    The game is up…the Goose is dead.

  28. Infidel Tiger

    When was the last time someone died in a confined space accident in a major plant like Toyota?

    Have you ever tried getting in the back seat of a Yaris?

  29. Leigh Lowe

    Nothing so sweet as a unionist getting the sack.

    Interesting point about the unions.
    Their private sector membership is heading south and most of the remainder is in these rust belt industries.
    Sure, union officials will go, but surely reduced memberships will impact on ACTU and ALP delegate representation for some unions and potentially curtail the political aspirations of some union officials.
    Standby for some cannibalisation at Trades Hall.

  30. Leigh Lowe

    When was the last time someone died in a confined space accident in a major plant like Toyota?

    Have you ever tried getting in the back seat of a Yaris?

    Point taken, but no.
    I did wake up in the boot of an EH Holden once, but that is a story for another day.

  31. Rohan

    So Leigh, what do you do in a situation where an 11 story fluidised bed LDPE reactor has its contents solidify? The only way in is through a small manhole cover into the confined space. The environment is deprived of oxygen and what little oxygen that’s present combined with pockets of entrapped ethylene gas makes the atmosphere explosive. The only feasible way to remove the LDPE mass is with intrinsically safe electric chainsaws. There’s no employer that can plan or prepare for that scenario. So do you go to your workers and say, “look, the chance that you’re going to be killed going into the reactor is somewhere between 1/100 and 1/1000, but we’re not going to pay you any extra danger money? If you don’t like it you can fuck off!”. Yep, I can see that going down well. BTW this actually happened in Altona some 25 odd years ago.

    As to what confined spaces are present at Toyota and what degree of risk exists in their situation, I have no idea. However, there’s also every possibility that the worst case scenario they could encounter is equally as dangerous as the one I mentioned.

    As I said, confined space entry is done only when absolutely necessary. Nor do I begrudge an extra allowance for that.

  32. Brian of Moorabbin

    FYI folks, be prepared for an influx of potential new readers (and the attendant Leftie trolls).

    Judith’s article has just been linked on the Liberal National Chat Page on Facebook….

  33. Peter H

    The members should sue the union, class action. Quite frankly All Australian voters should sue them.

  34. Michel Lasouris

    Why ever do we not adopt the successful strategy of Volvo Truck who imported Completely Knocked Down units (CKD) rebuilt them and ‘Australianised’ them in Wacol QLD
    Australia should thin out the unreasonable range of models and makes ( we have more makes and models than the US)
    Those Importers who remain should be required to include a given percentage of Australian made parts in all their vehicle production. Our Parts manufacturers would then be able to expand their exports and improve unit costs by inclusion within that manufacturers’ vehicles world wide.
    What’s wrong with that? At least it’s an idea….our pollies ( especially Shorten) offer nothing.
    Jobs for the redundant; use of empty facilities, business for Component manufacturers. Sweet!

  35. Habib

    Let’s face it, every one of these lazy extortionists will walk out in three years with a wedge Slugs & Grubbs wouldn’t get them for the most extensive and pitiful litigation for their most extrordinarily embellished injury.

    Farting through several layers of silk, with baken swan on the side.

  36. Leigh Lowe

    Leigh, what do you do in a situation where an 11 story fluidised bed LDPE reactor has its contents solidify?

    …. and how many of those are at Toyota Altona?

  37. Gab

    what do you do in a situation where an 11 story fluidised bed LDPE reactor has its contents solidify?

    Stop buying your LDPE from Qatar?

  38. Gab

    oops, I meant start, not stop. :)

  39. Leigh Lowe

    Perhaps everyone at Toyota should receive confined space allowance seeing as how they are wedged so far up each other’s arses.

  40. Tekweni

    My staff all have company vehicles. Some live in the country. Obviously those that live in Brisbane should get a “driving in traffic” allowance and a “parking in confined high rise parking” allowance (have you tried parking in some of these garages?).

    My country staff are all north of Brisbane and we provide them with four wheel drive vehicles. Roads can get quite bust up and wet during cyclone season. We obviously need to give them a “driving in cyclone allowance”. And as we provide services to hospitals we should really provide them with an “exposure to illness” allowance. Or maybe we should just pay them a salary and provide them with a clear job description? If they don’t like it then they don’t need to take the job.

  41. Alfonso

    “Oh what a feeling……”

    The Australian taxpayer free at last from corporate / Union crony car industry rent seekers.

  42. Habib

    What do you do when an 11th story LDPE fluidised reactor has its contact solidify? I’d say sack the bastards running it, it’s a catalytic critter that needs to run full time, or it fucks up. We’re not all ignorant here, in fact you’ll find that even those with worthless economics degrees have an understanding of physics and chemistry.

  43. Dan

    Judith, I’m not arguing with the rest of the article. The EBA is ridiculous on nearly every grounds listed. However, confined space entry is dangerous work by nature. You have limited access in/out of the space and the potential for an environment unable to support life is very real. You can be overcome by fumes/lack of oxygen and die within 10-20 seconds to name but one outcome. I don’t have issues with a risk allowance for this type of work.

    I’ve written confined space entry procedures, and they’re a nightmare at the best of times. It’s avoided unless absolutely necessary.

    Sorry to interrupt your banter with Liegh, but, Rohan, they also define a confined space as

    “In a compartment, space or place the dimensions of which necessitate an employee working in a stooped or otherwise cramped position.”

    Basically, if they have to squat under the chassis, they are in a confined space. Working in a pit underneath the car, confined space. Et fucking cetera

    It has nothing to do with a confined space as generally outlined in your standard WHSO booklet.

  44. Dan

    I seriously fucking doubt Toyota workers are putting on a BA and working in a ‘confined space’.

    Hey, were is the EBA procedure for a confined space? Check atmosphere, three spotters, ventilation. Sounds like the union really fucked up the JSA there.

  45. yackman

    “Confined Space” procedures are a necessary and critical facet of Safe Work Procedures such as Isolation (electrical,air & stored energy of all forms). It will usually require confirmation of safe air; ie.no toxins such as Carbon monoxide or hydrogen sulphide and a minimum oxygen level. Entry into a defined confined space commonly requires authorisation by a trained person and direct observation by another person.
    The nature of the actual task performed under in a Confined Space may or may not be unpleasant but the procedures save lives.

  46. yackman

    re Dan; agree with your point re the definition of the Confined Space as you quote from the EBA. It is inappropriate and should only relate to Spaces as defined after reference to the standards and JSA process.

  47. Dan

    Read the EBA doofus

    In a compartment, space or place the dimensions of which necessitate an employee working in a stooped or otherwise cramped position

    It has next to nothing to do with the definition of a confined space as set out in regulations

  48. Dan

    Righto Yackkers, I take the doofus back

  49. Cheap Cars At Last

    Dropped by the Dumb to see the celebrations about cars being cheaper soon. They’re a strange lot. Very little celebration during this joyous event. Spent their time lying about what Gina said.

  50. WhaleHunt Fun

    The nature of the actual task performed under in a Confined Space may or may not be unpleasant but the procedures save lives.

    So does celebrating the utter elimination overnight of Kim Carr’s whole Power base and his whole life’s work, his sole reason for living, …. celebrating that with champagne in a sealable tank would entitle me to a loading on my normal salary. Better and BETTER.

  51. Sean

    As per the usual Australian Standards the CSE allowance really doesn’t seem to make sense.

    Potentially it is a trade-off to allow for certain production line set-ups that required un-ergonomically friendly work positions to save costs that would be associated with designing out the issue, thus leading to greater risk of worker injury. Thus it could be a trade-off between Toyota and the workforce that in fact saves money.

  52. Dan

    I got worked up. I can’t for the life of me imagine an employee filling out a confined space entry permit to work under a car

  53. Dan

    If you aren’t fit for work and you can’t stoop/squat/reach around, then perhaps you should take a position in the workforce commensurate with your skills. Sweeping floors

  54. sabrina

    From Judith’s figures, the workers received 13.68% increase over 3 years, on an average 4.56% increase pa. Does anyone have the figures on the %-increase of the Directors salaries. I can not find any of their Annual Reports.

    Toyota Australia made ~215 million profit in 2012-13, and also received some subsidy from us taxpayers. I am trying to understand whether the management hoodwinked us taxpayers.

  55. nerblnob

    confined space entry is dangerous work by nature. You have limited access in/out of the space and the potential for an environment unable to support life is very real. You can be overcome by fumes/lack of oxygen and die within 10-20 seconds to name but one outcome. I don’t have issues with a risk allowance for this type of work.

    If a job is so life-threatening, I don’t see how paying extra makes it any less so. I’ve done plenty of confined entries – there are procedures to follow, possibly BA sets to wear, gas detectors to carry, etc.

  56. Patt

    Sabrina,all that profit was from their imported models,the local production in fact operated at a loss;
    Toyota said to their workforce that they had to reduce the production cost of the next generation Camry by $3,500 per car to continue here after 2017.The union bosses didn’t want to have a bar of that for some reason.End result Toyota are out of here after 51 years of production here

  57. elhombre

    Extra money for going into a confined space? My first job as a 9 year old was to go into the mine to make sure it was safe for the canary and I didn’t get any extra money !

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