Consultation obligations still important despite inevitable redundancy

In the matter of Munro v The Trustee For The Ross Tait Motors Ballina Trust [2024], the Fair Work Commission (FWC) underscored the critical role of consultation in redundancy decisions, emphasising the need for compliance with such obligations for redundancies to be considered ‘genuine’ within the meaning of section 389 of the Fair Work Act 2009. 

Despite the seeming inevitability of the redundancy, the FWC found in favour of Mr. Munro, highlighting Ballina Toyota's failure to fulfil its consultation obligations as required by the Vehicle Award that Mr Munro was employed under. Specifically, Ballina Toyota did not provide Mr. Munro with written information regarding the proposed changes to its business, nor did it discuss with him the potential impact of these changes or measures to mitigate adverse effects, as mandated by the Vehicle Award. 

While it was acknowledged that proper consultation would not have altered the ultimate outcome of Mr. Munro's redundancy, save for extending his employment by two weeks, Ballina Toyota's failure to engage in meaningful consultation weighed heavily in determining that the dismissal was harsh, unjust, and unreasonable. Ballina contended that it was unaware of such obligations existing. Nonetheless, had proper consultation occurred, Mr. Munro's employment would have concluded after a two-week period, thus, among other procedural fairness considerations, Saunders awarded two-weeks’ worth of compensation.

This case serves as a poignant reminder of the importance of adhering to consultation obligations under the relevant award, even in seemingly inevitable redundancy scenarios. It highlights the significance of procedural fairness and the potential ramifications of failing to meet consultation requirements, regardless of the anticipated outcome.