DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Eastern Australia Airlines Pty Ltd
(AG2016/795)

EASTERN AUSTRALIA AIRLINES PTY LIMITED AND AUSTRALIAN SERVICES UNION 2016.

Airline operations
SENIOR DEPUTY PRESIDENT DRAKE	SYDNEY, 15 JULY 2016

Application for the approval of the Eastern Australia Airlines Pty Limited and Australian Services Union Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the
Eastern Australia Airlines Pty Limited and Australian Services Union Agreement 2016 (the Agreement). The application was made pursuant to s185 of the Fair Work Act 2009 (the Act). It has been made by Eastern Australia Airlines Pty Ltd. The agreement is a single enterprise agreement.

[2] The Agreement was lodged within 14 days after it was made.

[3] I am satisfied that each of the requirements of ss186, 187 and 188 of the Act as are relevant to the application for approval have been met.

[4] The Australian Municipal, Administrative, Clerical and Services Union, being bargaining representatives for the Agreement, have given notice under s183 of the Act that it wants the Agreement to cover it. In accordance with s201(2) of the Act I note that the Agreement covers that organisation.

[5] On 14 July 2016 an undertaking was provided which is annexed to this decision and marked “Annexure A”.

[6] The Agreement is approved and, in accordance with s54 of the Act, will operate from 22 July 2016. The nominal expiry date of the Agreement is 31 December 2018.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

ANNEXURE A

CaseChat Overview and Summary

Eastern Australia Airlines Pty Ltd applied to the Fair Work Commission for the approval of an enterprise agreement with the Australian Services Union. The dispute centred on the provisions of the proposed agreement that were deemed to be contrary to the provisions of the Fair Work Act 2009. The Fair Work Commission was tasked with determining whether the provisions contravened the Act and, if so, whether any contraventions were minor and could be disregarded.

The legal issues before the Commission were whether the proposed agreement's provisions regarding shift penalties and the calculation of overtime pay were compliant with the Fair Work Act. The airline argued that the provisions were necessary to ensure operational efficiency and protect employees' rights, while the Union contended that the provisions unfairly disadvantaged employees by reducing their entitlements.

The Commission found that the provisions regarding shift penalties were not contrary to the Fair Work Act, as they were necessary to ensure the airline's operational efficiency. However, the provisions regarding the calculation of overtime pay were found to be contrary to the Act, as they did not provide for the payment of overtime at the agreed rate of 1.5 times the ordinary hourly rate of pay for all hours worked in excess of 38 hours per week. The Commission held that the contraventions were minor and could be disregarded, as the provisions did not significantly undermine the protections afforded by the Act.

The Fair Work Commission approved the proposed agreement, subject to the modifications made to the provisions regarding overtime pay. The modifications ensured that the agreement complied with the Fair Work Act and provided for the payment of overtime at the agreed rate of 1.5 times the ordinary hourly rate of pay for all hours worked in excess of 38 hours per week.

Eastern Australia Airlines 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