Tristar Steering and Suspension Australia Limited is an automotive company which was acquired by Arrowcrest Group Pty Ltd in 2000. Soon after the acquisition, the company began to wind up its manufacturing operations in Australia. The vast
majority of employees took voluntary redundancies, however, a small number of approximately 35 employees did not. These 35 employees of Tristar were employed under employment agreements which contained generous redundancy provisions.
This was a collective workplace agreement and was signed by the employees in 2003. Under this agreement, in the event of Tristar winding up its operations in Australia, they would be entitled to four weeks pay for every year they had worked for the company. These were long term employees, some had been working for this company for more than 30 years.
However, instead of receiving these entitlements, the employees were ordered to continue to come to work, even though there was no work for the employees to do. It seemed that the sole purpose of this was so Tristar could wait out the expiration
of the agreement, therefore leaving the employees entitled to just 12 weeks wages, as provided for under the industry award system.
Tristar claimed the employees were retained on the basis that they were required for continuing operations. They directed that the retained employees were to perform alternate work, such as reconditioning steering racks and a number of employees
were transferred from the afternoon to the night shift. They also maintained there was enough work to keep the employees busy for approximately two years. However, the employees claimed otherwise and deemed Tristar’s assertion laughable.
Media reports alleged that the employees would turn up for work each day and be found reading papers and listening to the radio.
In addition to the employees being left troubled and distressed by Tristar’s actions, a number of other incidences have occurred.
Employee Died
One of the employee’s was 61 year old John Beaven who had worked for Tristar for 43 years. He worked as an accounts manager at the company. In December 2006 he applied for a voluntary redundancy after discovering that he was suffering
from terminal bowel and liver cancer. His application was rejected. He claimed that his managers knew he was not expected to live much longer and they were simply waiting for him to die to avoid paying his entitlements (approximately $50
000). He also claimed the fact that 20 co workers were approved for redundancy applications around the same time, seemed strange and suspicious.
After pressure was applied from Prime Minister John Howard and his newly appointed Workplace Relations Minister Joe Hockey, Tristar agreed to pay Mr Beaven the $50 000 that he was owed. Two days later, after receiving his payment from
Tristar, Mr Beaven died.
Employee Fired for Talking to the Press
Another occurrence is the firing of Tristar shop steward Marty Peek on 30 March 2007. Mr Peek had worked for the company for 35 years. He was dismissed for allegedly making misleading and defamatory statements to the media when he
Tristar Steering and Suspension Australia Limited
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spoke with them in February 2007. He spoke with A Current Affair, Sky News and Australian Associated Press. The Australian Manufacturing Workers Union has filed an application with the Federal Magistrates Court to attempt to have Mr Peek’s dismissal overturned. The matter was heard before the Federal Court on 2 April 2007. The court decided that Mr Peek should be paid until the matter was determined. Tristar’s legal representation claimed that Mr Peek’s employment was terminated simply because he made allegations which Tristar believed were false and damaging. They state that although other employees spoke to the media, their comments were not seen as damaging whereas Mr Peek’s were, hence no other employees were dismissed. Mr Peek continues to wait for the outcome of his case Inquiry and Subsequent Court Cases On 22 January 2007 Tristar successfully applied to the Australian Industrial Relations Commission to have the agreement known as the Tristar Steering and Suspension Australia Limited Certified Agreement 2003 (which had a supposed expiry
date of 30 September 2006), terminated. They were successful in this application with the result that the employees were left with 12 weeks pay for their redundancy entitlements.1
On February 9, the New South Wales Minister for Industrial Relations John Della Bosca, used his powers under section 146 (1)(d) of the Industrial Relations Act (1996) NSW, to require the New South Wales Industrial Relations Commission to inquire
into and report on the availability of work at the Marrickville plant. The inquiry was also supposed to examine the availability and adequacy of remedies under Commonwealth and NSW laws. At the same time the Office of Workplace Services
began its own action in the Federal Court, seeking the entitlements for the employees, particularly their severance pay.
Tristar challenged the State Commission’s jurisdiction. The company maintained that section 16(1) of the Workplace Relations Act (1996) Cth, (the section excluding some State and Territory laws), meant the Commission had no power or jurisdiction
to hold the inquiry. The Commission did not accept this view.
Then, on the 5 April 2007, the full bench of the Federal Court ordered the State Commission to restrain from continuing its inquiry. Tristar argued that both Workchoices, and the High Court’s ruling on the validity of the legislation, excluded the commission from having any jurisdiction in the case of Tristar’s dispute with its employees. The State Commission’s council unsuccessfully countered this by stating that the Commission’s inquiry did not have the effect of creating rights and obligations between Tristar and its employees and therefore did not intrude upon the federal legislation.
The court reserved its decision, however, it issued an interlocutory injunction suspending the inquiry until it concluded its deliberations and reached a decision on the matter as to whether the Commission has the jurisdiction to conduct its inquiry.2
Prior to the injunction the inquiry had been told of some controversial issues. Federal Workplace Relations Minister Joe Hockey was accused by Mr Cheng Hong of suggesting that Mr Hong should dismiss the remaining Tristar workers and rehire
them to perform the same work on Australian Workplace Agreements (AWA’s). However, Minister Hockey has issued a press statement strongly denying these allegations.
On 13 April 2007 the Federal Court ordered the discontinuance of the inquiry in the Commission. The court found that Workchoices covers the field and that the NSW Commission has no power to conduct its inquiry into Tristar. Hence, the Commission was stopped from any further inquiries.
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1 Tristar Steering and Suspension Australia Ltd – re Termination of certified agreement – [2007] AIRC 50 – 22 January 2007
2 Tristar Steering and Suspension Limited v Industrial Relations Commission of New South Wales [2007] FCAFC 50