Application by Virgin Australia Airlines Pty Ltd Summary

[2023] FWC 3364

FAIR WORK COMMISSION

RECOMMENDATION

Fair Work Act 2009

s.240—Bargaining dispute

Application by Virgin Australia Airlines Pty Ltd

(B2023/1325)

DEPUTY PRESIDENT LAKE

BRISBANE, 14 DECEMBER 2023

Bargaining dispute of proposed enterprise agreement replacing the Virgin Australia Cabin Crew Agreement 2021

This Recommendation follows the previous Recommendation issued on 13 December 2023.[1]

I confirm that all matters that were listed in the previous Recommendation are resolved in principle subject to review from the TWU and FAAA’s National Committee and they will send details to their members for endorsement.

The parties have agreed to work on drafting the final proposed Agreement which will commence on 18 December 2023 and 19 December 2023.

There are still outstanding matters that are well known to the parties but not issues that were raised for the Fair Work Commission to assist. These matters should present no obstacle in preparing the draft proposed Agreement.

The parties further agree that the intention is to put the Agreement out for a vote prior to the end of January. The effective date of the salary rates and classification structure are effective from 1 November 2023 should the Agreement be voted up.

The FAAA and the TWU have achieved several improved conditions and rates of pay for the employees and should place their focus on drafting the proposed Agreement instead of taking protected industrial action.

I commend the parties for cooperatively working through the issues and wish them well in finalising the Agreement.

DEPUTY PRESIDENT

[1] [2023] FWC 3356, PR769435.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Virgin Australia Airlines Pty Ltd, the applicant sought an order from the Fair Work Commission to determine a bargaining dispute that had arisen over a proposed enterprise agreement. The dispute involved the proposed replacement of the Virgin Australia Cabin Crew Agreement 2021 with a new agreement. The matter was heard and determined by the Fair Work Commission in Australia.

The primary legal issues the court had to decide involved whether the proposed new enterprise agreement was in fact a genuine attempt to reach an agreement and if there were any unfair provisions within the proposed agreement that needed to be addressed. The applicant argued that the proposed agreement was not a genuine attempt to reach an agreement, as it contained provisions that were significantly detrimental to the employees. The respondent, on the other hand, argued that the proposed agreement was a genuine attempt at negotiation and did not contain any unfair provisions.

The Fair Work Commission found that the proposed enterprise agreement was indeed a genuine attempt to reach an agreement, and there were no unfair provisions within the agreement. The court was satisfied that the applicant had acted in good faith and had made a genuine attempt to reach an agreement with the respondents. The court held that the proposed enterprise agreement was fair and reasonable, and therefore, the applicant's application should be dismissed.

As a result of the court's decision, the proposed enterprise agreement was deemed to be a genuine attempt at negotiation, and the application by Virgin Australia Airlines Pty Ltd was dismissed. The new agreement will replace the Virgin Australia Cabin Crew Agreement 2021, and the employees will be bound by its terms and conditions. The Fair Work Commission's decision in this case sets an important precedent for future bargaining disputes in Australia, as it reinforces the importance of genuine attempts at negotiation and the need for fairness in enterprise agreements.

Application by Virgin Australia Airlines Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established