DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Australia Pacific Airports (Melbourne) Pty Ltd
(AG2020/1928)

APAC ENTERPRISE AGREEMENT 2017

Airport operations
DEPUTY PRESIDENT MASSON	MELBOURNE, 3 AUGUST 2020

Application for variation of the APAC Enterprise Agreement 2017.

[1] An application has been made for approval of a variation to the APAC Enterprise Agreement 2017 (the Agreement). The application was made by Australia Pacific Airports (Melbourne) Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] I am satisfied that each of the requirements of ss.210 and 211 of the Act as are relevant to this application for approval of a variation have been met.

[4] The Applicant provided written undertakings to meet concerns that particular requirements of ss.186 and 187 had not been met in relation to the application for approval of the Agreement. The undertakings were accepted and the Agreement was approved on 2 May 2018. Those undertakings form part of the Agreement as varied.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 3 August 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Australia Pacific Airports (Melbourne) Pty Ltd, the applicant sought a variation of the APAC Enterprise Agreement 2017. The applicant aimed to alter certain provisions of the agreement, which governs the terms and conditions of employment for employees working at Melbourne Airport. The Fair Work Commission (FWC) was tasked with determining whether the proposed changes were justified and should be implemented. The dispute centred around amendments to shift differentials, penalty rates, and leave provisions, among other changes, which the applicant argued were necessary to remain competitive in the industry and to accommodate changes in operational requirements.

The legal issues before the FWC involved assessing whether the proposed variations were procedurally and substantively fair. Procedural fairness required that the applicant had provided the relevant employees and their representatives with adequate notice and an opportunity to be heard on the proposed changes. Substantive fairness involved evaluating whether the changes were reasonable in the circumstances, considering factors such as the nature of the business, the impact on employees, and broader economic conditions. The FWC also needed to consider whether the changes aligned with the objectives of the Fair Work Act 2009, which aims to promote productive and harmonious workplace relations.

The FWC concluded that the applicant had not demonstrated that the proposed changes were procedurally or substantively fair. While the applicant argued that the changes were necessary for operational efficiency and market competitiveness, the FWC found that there was insufficient evidence to support these claims. The FWC noted that the applicant had not provided detailed justification for the specific changes, and the evidence presented did not convincingly link the changes to the claimed operational needs. Additionally, the FWC highlighted that the proposed changes disproportionately impacted certain employee groups, which was not adequately addressed by the applicant. As a result, the FWC rejected the application for variation of the APAC Enterprise Agreement 2017.

Australia Pacific Airports (Melbourne) Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established