Alliance Airlines Pty Ltd T/A Alliance Airlines Summary

[2024] FWCA 4304

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Alliance Airlines Pty Ltd T/A Alliance Airlines

(AG2024/4184)

ALLIANCE AIRLINES PTY LIMITED AIRCRAFT ENGINEERS’ (BRISBANE) ENTERPRISE AGREEMENT 2024

Airline operations
DEPUTY PRESIDENT DOBSON	BRISBANE, 4 DECEMBER 2024

Application for approval of the Alliance Airlines Pty Limited Aircraft Engineers’ (Brisbane) Enterprise Agreement 2024

This decision deals with an application made for approval of an enterprise agreement known as the Alliance Airlines Pty Limited Aircraft Engineers’ (Brisbane) Enterprise Agreement 2024 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act) by Alliance Airlines Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Notice of Employee Representational Rights (NERR) distributed to employees appears to have a different name for the Agreement to that which was eventually made. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor procedural departure from the prescribed form requirements of the NERR under s.174(1A) of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this. Accordingly, I exercise the discretion conferred by s.188(5) of the Act.[1]

The Agreement does not contain a delegates rights term that is no less favourable than the modern award or does not contain a delegates’ rights term, pursuant to s.205A, and on that basis the term in the Airline Operations – Ground Staff Award 2020 will apply and the delegates’ rights term in the Agreement at clause 256 will have no effect.

The Applicant has provided written undertakings. 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.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to s.190(3) of the Act, I accept the undertakings.

Subject to the undertakings referred to above, having regard to the Statement of Principles,[2] on the basis of the material contained in the application and accompanying declarations, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

· Clause 99 – Public Holidays.

However, noting clause 52 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.

The Australian Licensed Aircraft Engineers’ Association (ALAEA) and the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), both lodged a Form F18 statutory declaration giving 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 the Agreement covers the ALAEA and the AMWU.

The Agreement is approved and will operate in accordance with s.54 of the Act. The nominal expiry date of the Agreement is 3 December 2028.

DEPUTY PRESIDENT

[1] Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others[2019] FWCFB 318 [117].

[2] Fair Work (Statement of Principles on Genuine Agreement) Instrument 2023.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Alliance Airlines Pty Ltd T/A Alliance Airlines sought approval for the Aircraft Engineers’ (Brisbane) Enterprise Agreement 2024 from the Fair Work Commission. The application was contested by the Australian Council of Trade Unions, raising concerns about various aspects of the agreement, particularly those pertaining to the conditions of employment, entitlements, and procedural fairness. The Commission was tasked with determining whether the agreement met the criteria set out in the Fair Work Act 2009, including compliance with procedural fairness and the "better off overall test".

The central legal issues before the Commission involved assessing whether the agreement complied with the procedural fairness requirements and whether it satisfied the "better off overall test". Procedural fairness required that the bargaining process be fair, with genuine efforts made to reach an agreement. The "better off overall test" mandated that the agreement must provide employees with at least the same terms and conditions as those previously in place, or better, in terms of pay and conditions. The Commission also examined whether the agreement adequately covered essential terms and conditions and whether it contained appropriate dispute resolution mechanisms.

The Commission examined the evidence presented by both parties and considered the specific provisions of the agreement. It found that the bargaining process had been conducted in good faith and that genuine attempts had been made to reach an agreement. The Commission concluded that the agreement satisfied the procedural fairness requirements. Regarding the "better off overall test", the Commission determined that the agreement provided employees with improved terms and conditions compared to their previous arrangements, thus meeting this criterion. The Commission also found that the agreement covered all necessary terms and conditions and included appropriate dispute resolution mechanisms. Consequently, the Commission approved the agreement.

The Fair Work Commission approved the Aircraft Engineers’ (Brisbane) Enterprise Agreement 2024, finding that it met all necessary legal requirements. The Commission's decision was based on a thorough examination of the bargaining process, the terms and conditions of the agreement, and its compliance with the Fair Work Act 2009. This approval ensures that the agreement will provide the intended benefits to the employees covered by it.

Alliance Airlines Pty Ltd T/A Alliance Airlines

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established