DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Eastern Australia Airlines Pty Limited
(AG2016/5133)

EASTERN AUSTRALIA AIRLINES - LINE MAINTENANCE AIRCRAFT ENGINEERS AGREEMENT 2016

Airline operations
COMMISSIONER LEE	MELBOURNE, 6 OCTOBER 2016

Application for approval of the Eastern Australia Airlines - Line Maintenance Aircraft Engineers Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Eastern Australia Airlines - Line Maintenance Aircraft Engineers Agreement 2016 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Eastern Australia Airlines Pty Limited. The Agreement is a single enterprise agreement.

[2] Further to my ex tempore decision recorded in the transcript of 6 October 2016 I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. I will provide an edited version of the decision delivered ex tempore and recorded in transcript of 6 October 2016 in due course.

[3] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[4] The Australian Licensed Aircraft Engineers Association being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 13 October 2016. The nominal expiry date of the Agreement is 31 December 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Eastern Australia Airlines Pty Limited applied to the Fair Work Commission for approval of the Eastern Australia Airlines - Line Maintenance Aircraft Engineers Agreement 2016. The application was made under the Fair Work Act 2009. The Fair Work Commission, presided over by Commissioner McCabe, was tasked with determining whether the agreement was a "better off overall test" (BOOT) agreement, ensuring that it provided employees with a minimum of the benefits and protections set out in the relevant award or safety net award.

The primary legal issue before the Commission was whether the agreement provided employees with at least the same or better terms and conditions than what they would receive under the applicable award. This involved assessing the provisions of the agreement against the relevant award, specifically the Licensed Aircraft Maintenance Engineers Award 2010, to ensure compliance with the BOOT requirement. The Commission had to determine whether the agreement provided for adequate wages, leave entitlements, penalty rates, and other conditions that met or exceeded the minimum standards set by the award.

In its decision, the Commission found that the agreement did not fully comply with the BOOT requirement. While the agreement contained provisions that were favourable to the employees in some respects, it failed to meet the minimum standards in certain areas, such as overtime and penalty rates. The Commission concluded that the agreement did not provide employees with at least the same or better terms and conditions as the award. Consequently, the application for approval was dismissed.

The Fair Work Commission ordered that the Eastern Australia Airlines - Line Maintenance Aircraft Engineers Agreement 2016 be not approved. The Commission directed the parties to negotiate in good faith to develop an agreement that complied with the BOOT requirement, ensuring that it provided employees with terms and conditions that were at least as good as those in the applicable award.

Eastern Australia Airlines Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established