Canberra has said it will intervene in a high profile court case to support Toyota's efforts to change workers' conditions at its plant in Australia in order to reduce costs at the country's last remaining car manufacturer.
The unusual legal intervention by Eric Abetz, employment minister, comes ahead of a decision by Toyota on whether to follow Ford and General Motors' Holden unit by exiting car manufacturing in Australia due to the high cost of doing business.
(Read more: Toyota looks to settle suits)
Mr Abetz used a keynote address to the Sydney Institute to issue a warning to unions and employers about the dangers of agreeing overly generous pay deals that undermined business competitiveness.
"Employers and unions must be encouraged to take responsibility for the cost of their deals," he said.