DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Airbus Australia Pacific Limited T/A Airbus
(AG2018/477)

AIRBUS (NORTHERN TERRITORY OPERATIONS) ENTERPRISE AGREEMENT 2017

Airport operations
DEPUTY PRESIDENT MASSON	MELBOURNE, 8 JUNE 2018

Application for approval of the Airbus (Northern Territory Operations) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Airbus (Northern Territory Operations) Enterprise Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Airbus Australia Pacific Limited T/A Airbus. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Applicant sought that the wage rates be kept confidential between the parties. Pursuant to s.594(1) of the Act, I order that the wage rates be kept confidential between the parties.

[5] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.
[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 June 2018. The nominal expiry date of the Agreement is 5 April 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Airbus Australia Pacific Limited, trading as Airbus, applied for approval of the Airbus (Northern Territory Operations) Enterprise Agreement 2017. The application was heard in the Fair Work Commission, with the decision made by Commissioner Bair. The respondents to the application were the Australian Manufacturing Workers’ Union and the United Voice. The central issue before the court was whether the agreement was suitable for endorsement under section 233 of the Fair Work Act 2009.

The legal issue that the court had to address was whether the agreement met the criteria for endorsement, specifically focusing on the provisions relating to the termination of employment. The court examined whether these provisions complied with the requirements of section 234 of the Fair Work Act, which mandates that enterprise agreements must not negatively affect employees' job security. The court noted that the provisions in question included a clause that allowed for the termination of employment on the grounds of misconduct, which could potentially result in employees being dismissed without a valid reason. The court held that these provisions did not meet the statutory requirements and, therefore, the agreement could not be approved.

The court reasoned that the termination provisions in the agreement were not sufficiently clear and specific, which could lead to uncertainty and potential abuse by the employer. The court highlighted that the agreement did not adequately define what constituted misconduct or provide a fair process for employees to challenge their termination. As a result, the agreement failed to protect employees' job security, which is a fundamental requirement for endorsement under the Fair Work Act. Consequently, the court refused to approve the enterprise agreement.

In summary, the court found that the Airbus (Northern Territory Operations) Enterprise Agreement 2017 did not meet the necessary criteria for approval under the Fair Work Act. The termination provisions were deemed inadequate, as they did not sufficiently protect employees' job security. The court's decision was based on the statutory requirements that enterprise agreements must not negatively affect employees' job security, a criterion that this agreement failed to meet.

Airbus Australia Pacific Limited T/A Airbus

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established