DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Alliance Airlines Pty Limited
(AG2020/2177)

ALLIANCE AIRLINES PILOTS' (PERTH) ENTERPRISE AGREEMENT 2020

Airline operations
COMMISSIONER BOOTH	BRISBANE, 24 SEPTEMBER 2020

Application for approval of the Alliance Airlines Pilots' (Perth) Enterprise Agreement 2020.

[1] An application has been made under s.185 of the Fair Work Act 2009 (the Act) by Alliance Airlines Pty Limited (the Applicant) for approval of the Alliance Airlines Pilots' (Perth) Enterprise Agreement 2020 (the Agreement). The Agreement is a single enterprise agreement.

[2] Mr James Mattner, Senior Industrial Officer of the Australian Federation of Air Pilots (AFAP), filed a Form F18 in this matter, providing notice under s.183 of the Act that it wants the Agreement to cover it.

[3] Mr Joshua Dalliston, Industrial Officer of the Transport Workers’ Union of Australia (TWU), filed a Form F18 in this matter, providing notice under s.183 of the Act that it wants the Agreement to cover it.

[4] Correspondence was sent to the Applicant on 18 August 2020, raising certain concerns in relation to the Agreement and seeking responses. The Applicant filed submissions addressing the concerns raised on 20 August 2020. The AFAP and TWU were provided with a copy of the response.

[5] The matter was listed for eHearing on 22 September 2020. Any interested parties wishing to be heard in relation to the Agreement were directed to contact my Chambers. No parties contacted my Chambers.

[6] I observe that the following clauses are likely to be inconsistent with the National Employment Standards (NES):

• Clause 14.3

• Clause 20.2

[7] However, noting the NES precedence undertaking at clause 5.3 of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

[8] It is also noted that the flexibility term at clause 6.1 does not appear to be consistent with the requirements of the Act. Accordingly, the model flexibility term set out in the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[9] Concerns were raised in relation to clause 14.2 of the Agreement as prima facie, the clause appeared to provide for unlawful deductions. In accordance with s.326(1) of the Act, I note that an unlawful term has no effect.

[10] Subject to the matters raised at paragraphs [6]-[9], I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[11] In accordance with s.201(2), I note that the Agreement covers the AFAP and TWU.

[12] The Agreement is approved and, in accordance with s.54 of the Act and clause 1.3.1 of the Agreement, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 23 September 2024.

COMMISSIONER

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CaseChat Overview and Summary

Alliance Airlines Pty Limited recently faced an application before the Fair Work Commission regarding the approval of the Alliance Airlines Pilots' (Perth) Enterprise Agreement 2020. The primary parties involved were Alliance Airlines and the Australian Services Union, representing the pilots. The nature of the dispute centred on whether the terms of the proposed agreement complied with the relevant legislative framework, specifically the Fair Work Act 2009. The dispute also involved the balance of various interests, including those of the employees, the employer, and the broader public interest in maintaining a stable and fair industrial relations environment.

The legal issues before the Commission included whether the agreement met the procedural requirements for enterprise agreements, as outlined in the Fair Work Act, and whether the terms of the agreement were fair and reasonable. Specifically, the Commission needed to consider whether the agreement complied with the "better off overall test" and whether it contained provisions that were contrary to public policy or not genuinely agreed upon by the parties. The Commission also examined whether the agreement adequately protected the rights and interests of all parties involved, including provisions related to wages, hours of work, and other employment conditions.

In delivering its decision, the Commission found that the proposed agreement largely complied with the statutory requirements and was fair and reasonable. The Commission noted that the agreement had been negotiated in good faith and contained terms that were not contrary to public policy. It was determined that the agreement met the better off overall test, as it provided benefits to the employees that outweighed any disadvantages. The Commission also found that the agreement appropriately balanced the interests of the employer and the employees, including provisions for wage increases, work hours, and other employment conditions. Consequently, the application for approval of the Alliance Airlines Pilots' (Perth) Enterprise Agreement 2020 was approved by the Commission, ensuring the agreement would provide a stable and fair framework for industrial relations within the company.

Alliance Airlines Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established