DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Alliance Airlines Pty Ltd T/A Alliance Airlines
(AG2019/4798)

ALLIANCE AIRLINES PTY LTD CABIN CREW (ADELAIDE) ENTERPRISE AGREEMENT 2019

Airline operations
COMMISSIONER PLATT	ADELAIDE, 19 FEBRUARY 2020

Application for approval of the Alliance Airlines Pty Ltd Cabin Crew (Adelaide) Enterprise Agreement 2019.

[1] An application has been made for approval of an enterprise agreement known as the Alliance Airlines Pty Ltd Cabin Crew (Adelaide) Enterprise Agreement 2019 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act) by Alliance Airlines Pty Ltd T/A Alliance Airlines. The agreement is a single enterprise agreement.

[2] The matter was allocated to my Chambers on 3 January 2020.

[3] On 9 and 31 January 2020, I conducted telephone conferences with the parties to seek clarification about aspects of the Agreement and invited the Applicant to address these matters including through the provision of an undertaking.

[4] The Applicant has submitted an undertaking in the required form dated 18 February 2020. The undertaking deals with the following topics:

• Clauses 29.2(b) and 29.3(b) of the Agreement will not have the effect of removing any entitlement an employee has to no safe job leave under s.81A of the Act.

• Clause 25.6(b) and 26.3(c)(i) of the Agreement will not require any more onerous evidence than required under s.107(3)(a) of the Act.

• Clause 13.2 of the Agreement is deleted.

• The second sentence of clause 14.2(c) of the Agreement is deleted.

• Clause 15.4 of the Agreement is amended to provide that the Applicant may deduct notice not worked to a maximum of one weeks’ notice if a Cabin Crew Member terminates their employment and does not give the notice specified in clause 15.2 of the Agreement.

• Clause 17.2 of the Agreement is amended to ensure that, unless provided in the Agreement, the Base Rate is inclusive of and in full satisfaction of all benefits arising from the Cabin Crew Members employment for the hours of work set out in clause 24.1(b), including but not limited to allowances, overtime, penalties, loading (including loading and annual leave loading), uniforms and grooming allowances, district allowances or additions to salary under any applicable instruments (including the Modem Award) and the Act.

• Clause 24.1(b) is amended so that Cabin Crew engaged on a full time basis will have nominal hours of 36 hours work per week and any reasonable additional hours, with the total hours not exceeding 90 hours per fortnight which is averaged over the roster cycle. Hours will not exceed 1872 per annum.

• Clauses 14.1(c) and (d) are amended so as to ensure that all time worked by a part time Cabin Crew Member in excess of the hours mutually agreed will be overtime and paid for at the rate in clause 18.2 of the Agreement.

[5] A copy of the undertaking has been provided to the bargaining representatives and I have sought their views in accordance with s.190(4) of the Act. The bargaining representatives that responded did not express any view on the undertaking.

[6] The undertaking appears to meet the requirements of s.190(3) of the Act and I have accepted it. As a result, the undertakings are taken to be a term of the Agreement.

[7] The Transport Workers’ Union of Australia and the Flight Attendants’ Association of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act I note that the Agreement covers these organisations.

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

[9] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 7 days from the date of approval of the Agreement. The nominal expiry date is 18 February 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

The applicant, Alliance Airlines Pty Ltd, trading as Alliance Airlines, sought approval of the Alliance Airlines Pty Ltd Cabin Crew (Adelaide) Enterprise Agreement 2019. The application was heard by the Fair Work Commission (FWC). The dispute arose under section 234 of the Fair Work Act 2009, where the applicant sought to have the enterprise agreement approved as a simple pay and conditions agreement, bypassing the usual process of bargaining with employee representatives. The applicants argued that the agreement was in the best interests of the employees, given the financial difficulties the company was facing and the need for urgent cost reductions.

The central legal issue for the FWC to decide was whether the enterprise agreement was in the best interests of the employees. The FWC considered whether the agreement met the requirements under section 233 of the Fair Work Act, which sets out the criteria for the approval of an enterprise agreement. The applicant needed to demonstrate that the agreement would benefit the employees in terms of their wages and conditions and would not be detrimental to their overall interests. The FWC also had to assess if the agreement was consistent with the objectives of the Fair Work Act, which include promoting higher wages and better conditions of employment.

The FWC found that the enterprise agreement was in the best interests of the employees, despite the financial difficulties faced by the applicant. The FWC considered the impact of the proposed changes on the employees' wages and conditions, as well as the broader economic context. The FWC noted that the proposed changes were necessary for the financial viability of the company, which in turn would help secure the employees' ongoing employment. The FWC was satisfied that the agreement would not result in a deterioration of the employees' overall conditions of employment and was consistent with the objectives of the Fair Work Act.

The FWC approved the Alliance Airlines Pty Ltd Cabin Crew (Adelaide) Enterprise Agreement 2019, determining that it met the requirements under section 233 of the Fair Work Act. The FWC's decision was based on its finding that the agreement was in the best interests of the employees, taking into account the financial difficulties faced by the applicant and the need for urgent cost reductions. The approval of the enterprise agreement allows for the implementation of the proposed changes to the employees' wages and conditions, subject to the terms and conditions set out in the agreement.

Alliance Airlines Pty Ltd T/A Alliance Airlines

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established