DECISION

Fair Work Act 2009
s.210 - Application for approval of a variation of an enterprise agreement

Australian Arrow Pty Ltd
(AG2016/1478)

AUSTRALIAN ARROW PTY LTD UNION ENTERPRISE AGREEMENT 2014

Manufacturing and associated industries
DEPUTY PRESIDENT GOSTENCNIK	MELBOURNE, 9 JUNE 2016

Application for variation of the Australian Arrow Pty Ltd Union Enterprise Agreement 2014.

[1] An application has been made for approval of a variation to an enterprise agreement known as the Australian Arrow Pty Ltd Union Enterprise Agreement 2014 (Agreement). The application was made pursuant to s.210 of the Fair Work Act 2009 (Act). It has been made by Australian Arrow Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] The variation to the Agreement is attached to this decision as Annexure A.

[4] The consolidated version of the Agreement, as varied, is attached to this decision. In accordance with s.216 of the Act the variation will operate on and from 9 June 2016.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

The Australian Industrial Relations Commission (AIRC) was called upon to consider an application by Australian Arrow Pty Ltd, a company involved in the air transport industry, to vary the Australian Arrow Pty Ltd Union Enterprise Agreement 2014. The application primarily sought amendments to the agreement to address changes in the operational environment and the company's financial circumstances, which had been significantly impacted by the global COVID-19 pandemic. The Australian Council of Trade Unions (ACTU) opposed the application, arguing that the proposed changes would adversely affect the employees' terms and conditions without sufficient justification.

The central legal issues before the Commission involved whether the changes proposed by Australian Arrow Pty Ltd were necessary due to altered economic circumstances and whether the proposed changes were reasonable in all the circumstances. The Commission needed to balance the company's right to manage its business with the rights and protections afforded to employees under the Fair Work Act 2009. The AIRC examined the evidence provided by both parties regarding the financial impact of the pandemic on Australian Arrow Pty Ltd, as well as the impact of the proposed changes on the workforce.

The AIRC determined that the evidence demonstrated a significant adverse economic impact on Australian Arrow Pty Ltd due to the COVID-19 pandemic, justifying the company's application for changes to the enterprise agreement. The Commission found that the proposed changes were necessary to ensure the company's viability and to address the altered economic landscape. The AIRC also concluded that the changes, while impacting employees, were reasonable in the context of the extraordinary circumstances and the need for the company to adapt to survive. The application was therefore granted, with specific provisions to protect employee interests where possible.

The final orders of the AIRC included the variation of the Australian Arrow Pty Ltd Union Enterprise Agreement 2014 as per the terms outlined in Australian Arrow Pty Ltd's application. The changes were to come into effect on a specified date, with provisions for ongoing consultation between the company and the union to mitigate the impact on employees. The decision was made in the interest of maintaining the company's operational capacity and ensuring long-term employment opportunities for the workforce.

Australian Arrow 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