Airflite Pty Ltd

[2018] FWCA 2471

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Airflite Pty Ltd

(AG2017/5852)

Pearce- Aerospace Maintenance Enterprise Agreement 2017 - 2020

Airline operations
Commissioner McKinnon	MELBOURNE, 4 MAY 2018

Application for approval of the Pearce- Aerospace Maintenance Enterprise Agreement 2017 - 2020.

An application has been made for approval of an enterprise agreement known as the Pearce- Aerospace Maintenance Enterprise Agreement 2017 - 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Airflite Pty Ltd. The Agreement is a single enterprise agreement.

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.

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.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 May 2018. The nominal expiry date of the Agreement is 1 December 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Airflite Pty Ltd recently appeared before the Fair Work Commission in an application for the approval of the Pearce- Aerospace Maintenance Enterprise Agreement 2017-2020. The application was brought by the employer, Airflite Pty Ltd, seeking the Commission's endorsement of the proposed enterprise agreement. The agreement, which is intended to govern the employment terms and conditions of its workforce, was entered into by the employer and the Australian Licensed Aircraft Engineers Association (ALAEA), the registered trade union representing the employees.

The central legal issue before the Commission was whether the proposed enterprise agreement complied with the relevant statutory provisions of the Fair Work Act 2009. Specifically, the Commission had to determine if the agreement was "registered" as required by section 174 of the Act, and if it met the "better off overall test" as outlined in section 178. The "better off overall test" requires that the agreement must provide employees with at least the same terms and conditions of employment as they had prior to the agreement, or be better off overall. The application hinged on whether the proposed agreement achieved this threshold.

In considering the application, the Commission examined the provisions of the proposed agreement and the evidence provided by both parties. The Commission found that the agreement satisfied the statutory requirements under the Fair Work Act. The agreement provided employees with terms and conditions that were at least as good as, if not better than, their previous conditions. The Commission was satisfied that the agreement met the "better off overall test" and therefore approved the application for registration. This decision confirmed the legal enforceability of the agreement between Airflite Pty Ltd and the ALAEA, ensuring that the terms set out in the agreement would govern the employment relationship during the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established