[2025] FWC 2405

The attached document replaces the document previously issued with the above code on 27 August 2025.

The correct reference number and decision citation have been added.

[2025] FWC 2405

Fair Work Act 2009

s.306E - Application for a regulated labour hire arrangement order

"Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU)

Application for a regulated labour hire arrangement order in respect of The Trustee For The Reddy's Trade And Labour Services Family Trust t/a Reddy's General Services in relation to work performed for Nissan Casting Australia Pty Ltd

• [1] This decision concerns an application made under s 306E of the Fair Work Act 2009 (Cth) (FW Act) for a regulated labour hire arrangement order. The applicant is the "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU). The application was made on 29 April 2025.

• [2] The application seeks the making of regulated labour hire arrangement order to cover The Trustee For The Reddy's Trade and Labour Services Family Trust t/a Reddy's General Services as the employer, Nissan Casting Australia Pty Ltd (Nissan Casting) as the regulated host. It will also cover employees of Reddy's who perform work for Nissan Casting Australia Pty Ltd, at the Nissan plant located at 209 - 235 Frankston-Dandenong Rd, Dandenong South VIC 3175; who would, if employed by Nissan, be covered by the Nissan Casting Australia Pty Ltd Agreement 2022 - 2026 (Nissan EA).

• [3] The AMWU is represented by Ms Chloe Simmons (Industrial Officer). The employer and Nissan Casting were represented by Mr Natheniel Ganeson (Solicitor) of HR Legal. Mr Ganeson was granted permission to appear.

• [4] On 20 August 2025, Mr Ganeson notified the Commission and the AMWU that the correct legal name of the employer is Reddy's Trade and Labour Services Pty Ltd ATF The Reddy's Trade and Labour Services Family Trust (Reddy's).

• [5] The making of a regulated labour hire arrangement order is not opposed by the respondents. The parties agreed to the Commission dealing with the matter on the papers without need for a hearing.

• [6] Nevertheless, it is necessary for the Commission to be satisfied that any applicable requirements of s 306E are met before making a regulated labour hire arrangement order.

• [7] The AMWU relies on its Form F86 application, a written outline of submission dated 5 August 2025, and a supplementary submission filed by email on 21 August 2025. The AMWU material set out a number of factual matters.

• [8] As the making of the making of a regulated labour hire arrangement order is not opposed, the respondents did not file any evidence or written submissions, save for some short submissions provided to the Commission on 22 August 2025 replying to the AMWU supplementary submission of 21 August 2025.

• [9] At a mention on 26 August 2025, the parties provided some further information about factual matters, in particular the work and roles performed by Reddy's employees at Nissan Casting. There was no controversy between the parties about this further information.

• [10] Arising from the Form F86, the Nissan EA, the AMWU's outline of submissions, the AMWU's supplementary submission, the respondents' submission of 22 August 2025 and the information provided by the parties at the mention on 26 August 2025, I make the following factual findings:

(a) Nissan Casting is a trading corporation incorporated under the Corporations Act 2001 (Cth) and is a national vehicle manufacturing company;

(b) Nissan Casting operates a plant at 209 - 235 Frankston - Dandenong Road, Dandenong South VIC 3175 (Dandenong Site) which manufactures and distributes High Pressure Die Castings (HPDCs);

(c) HPDCs are specialist metal parts used in Nissan vehicles manufactured in various car plants around the world;

(d) Nissan Casting directly employs employees to perform work at the Dandenong Site and is not a small business employer;

(e) The Nissan EA, being an enterprise agreement made under the FW Act, covers and applies to the AMWU, Nissan Casting and its employees employed at the Dandenong Site in the classifications set out in the agreement;

(f) There are five classification streams in the Nissan EA being Utilities, Production Technicians, Maintenance and Tool Room Technicians, Quality Auditors and Electronics;

(g) Reddy's supplies its employees to perform work for Nissan Casting at the Dandenong Site and as such Reddy's operates as a labour hire provider to Nissan Casting;

(h) Reddy's supplies between 60 - 70 of its employees to Nissan Casting to perform work in trades and non-trades roles including in the roles of fitter and turner, electrician, tool makers, trade assistants, machine operators, forklift drivers and quality inspectors;

(i) the Nissan EA would apply to the Reddy's employees supplied, if Nissan Casting were to employ them to perform work of the kind that they perform for Nissan Casting;

(j) The Reddy's employees who perform work for Nissan at the Dandenong South Site perform work across a wide range of classifications in the Nissan EA;

(k) Reddy's has negligible involvement in matters relating to the performance of work by Reddy's employees, as Nissan Casting provides direction on site and consequently deals with matters in the nature of assigning tasks and reviewing quality of work;

(l) Nissan Casting in practice provides the direction, supervision and control of the Reddy's employees when they perform work and substantially determines the rosters of those workers, and as such Reddy's has negligible involvement in those matters;

(m) The Reddy's employees use Nissan Casting system, plant, equipment and consequently use negligible system, plant and equipment belonging to Reddy's; and

(n) The work performed by Reddy's employees, both trades and non-trades, is integrated into the day-to-day ordinary operations of the Dandenong Site, as it entails work such as maintenance, production and quality audit.

• [11] The proper approach to determination of applications made under s 306E of the FW Act is set out in a decision of a Full Bench of the Commission in Application by the Mining and Energy Union re Callide Mine.[1] I adopt the principles set out in that decision.

• [12] I am satisfied that each of the employees supplied by RGS to Nissan Casting are regulated employees within the meanings of s 306E(5) and s 306E(1)(a).

• [13] I am satisfied that the AMWU is an employee organisation entitled to represent the industrial interests of a regulated employee. I am also satisfied that the AMWU is entitled to represent the industrial interests of an employee of Nissan Casting. Consequently, the AMWU has standing under s 306E(7) to apply for a regulated labour hire arrangement order made under s 306E.

• [14] I am satisfied that the requirements set out in s 306E(1) are met in that:

(a) Reddy's supplies its employees to perform work for Nissan;

(b) The Nissan EA would apply to employees of Reddy's if Nissan were to employ them directly to perform work of the same kind; and

• [15] As I am satisfied of the requirements in s 306E(1), I am required to make a regulated labour hire arrangement order under s 306E, provided that that I am also satisfied that the prohibitions in s 306E(1A) and s 306E(2) do not apply.

• [16] In respect of s 306E(1A), I am satisfied that the performance of the work is not or will not be for the provision of a service, rather than the supply of labour. I am satisfied that Reddy's supplies labour to Nissan. In reaching this conclusion, I have had regard to the matters set out in s 306E(7A) and I refer to the factual findings set out in paragraph 10 above, in particular paragraphs 10(g) - (h) and (j) -(n). In relation to s 306(7A)(b), there is no material before me which suggests that Reddy's or any other person is or will be subject to any industry or professional standards or responsibilities in relation to the employees of Reddy's. In relation to s 306(7A), having regard to my finding in paragraph 10(n), I consider that the work performed by Reddy's employees is not work of a specialist or expert nature.

• [17] In respect of s 306E(2), I am not satisfied that it is not fair and reasonable in all of the circumstances to make a regulated labour hire arrangement order.

• [18] The AMWU outline of submission made some brief observations in relation to s 306E(8)(a)(ii) & (iii) and s 306(8)(c). Those observations did not deal with substantive facts or matters which went to the considerations set out in s 306E(8)(a) & (c). The observations seem to have made principally in support of an AMWU application for an order for production of documents directed to Nissan Casting. However, to the extent that those observations constitute submissions made in respect of s 306E(8), I have had regard to them in reaching the view set out in paragraph 17 above.

• [19] In light of the matters set out above, I am required to make a regulated labour hire arrangement order.

• [20] I have referred in paragraph 18 above to an AMWU application for an order for production directed to Nissan Casting. The document sought was a document held by Nissan Casting said to be relevant to identifying the particular classification grade of employees under the Nissan EA. The AMWU contended that the document was relevant in the substantive application in that it would assist determine the particular protected rate of pay for an employee of Reddy's having regard to anticipated dispute about that matter. I did not consider it necessary to make the production order, as Nissan Casting and Reddy's indicated to the Commission that they did not oppose the making of a regulated labour hire arrangement order. I note that if, after the making of a regulated labour hire arrangement order, the protected rate of pay is in dispute for a regulated employee, Div 3 of Part 2-7A provides a mechanism for the Commission to resolve a dispute about the protected rate of pay for a regulated employee.

Form of Regulated Labour Hire Arrangement Order

• [21] The operative date of the regulated labour hire arrangement order will be 27 August 2025 which is permitted by s 306E(9)(c)(ii). The order specifies the matters required under s 306E(9). The parties did not seek that the order specify when it ceases to be in effect and so the order does not specify a cessation date.

The order will be published alongside this decision.[2]

[1]Application by the Mining and Energy Union re Callide Mine [2024] FWCFB 299.

[2] LH200032, PR786461.

Printed by authority of the Commonwealth Government Printer