Federal Express Corporation

Case [2025] FWCA 922


[2025] FWCA 922

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Federal Express Corporation

(AG2025/632)

FEDERAL EXPRESS CORPORATION (AVIATION MAINTENANCE) FAIR WORK AGREEMENT 2024

Road transport industry

COMMISSIONER SLOAN

SYDNEY, 14 MARCH 2025

Application for approval of the Federal Express Corporation (Aviation Maintenance) Fair Work Agreement 2024

  1. Federal Express Corporation has applied for approval of an enterprise agreement known as the Federal Express Corporation (Aviation Maintenance) Fair Work Agreement 2024 (“Agreement”). The application is made under s 185 of the Fair Work Act 2009 (“Act”). The Agreement is a single enterprise agreement.

  2. The Australian Licenced Aircraft Engineers’ Association (“ALAEA”) was a bargaining representative for the Agreement. It supports the approval of the Agreement.

  3. In a number of respects, the Agreement might be read as being inconsistent with the National Employment Standards and imposing terms that are less beneficial to employees. That is:

  4. Clause 13.4.1 (which relates to sick leave) and clause 13.4.2 (which relates to carer’s leave) require an employee to inform their manager of their absence at least one hour prior to their rostered start time. In contrast, s 107(2)(a) of the Act provides that an employee must provide notice “as soon as practicable (which may be a time after the leave has started)”.

  5. Each of clauses 13.4.1 (sick leave), 13.4.2 (carer’s leave), 13.4.4 (volunteer emergency services and bush fire-fighters leave), 13.5 (compassionate leave) and 13.7 (jury service leave) require an employee to substantiate the reason for their absence with evidence “which is considered suitable by [their] manager”. The relevant provisions of the Act – ss 107(3) and 110(3) – require an employee to provide evidence “that would satisfy a reasonable person” that the absence is for the reason claimed.

  1. Clause 13.4.4 purports to limit “volunteer emergency services and bush fire-fighters leave” to five days per occasion. Section 108(b) requires that any absence on community service leave, apart from jury service, be “reasonable in all the circumstances”. Whether or not an absence beyond five days is reasonable cannot necessarily be determined in advance.

  1. Clause 13.5 deals with compassionate leave. On its terms, it is limited to situations in which a member of an employee’s immediate family develops an illness or sustains an injury which poses a serious threat to their life, or who dies. The clause does not contemplate compassionate leave in the event that a child is stillborn or where the employee, or the employee’s spouse or de facto partner, has a miscarriage, as provided for in s 104(1)(b) and (c).

  1. Having noted these matters, clause 2 of the Agreement provides that where there is an inconsistency between the Agreement and the NES, and the NES provides a greater benefit to employees, the NES will prevail to the extent of the inconsistency. This should ensure that the provisions to which I have referred are not applied in a manner contrary to the NES. In raising the issues, it is my intention to ensure that this is the case.

  2. Having regard to the material in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187, 188 and 190 of the Act as are relevant to the application have been met.

  3. The ALAEA has given notice under s 183 of the Act that it wants the Agreement to cover it. As required by s 201(2) of the Act, I note that the Agreement covers the ALAEA.

  4. The Agreement is approved. In accordance with s 54 of the Act, the Agreement will operate from 21 March 2025. The nominal expiry date of the Agreement is 30 September 2026.


COMMISSIONER

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Details
AGLC
Federal Express Corporation [2025] FWCA 922
Case
[2025] FWCA 922
Decision Date

CaseChat Overview and Summary

Federal Express Corporation, an international courier and logistics company, applied to the Fair Work Commission for approval of the Federal Express Corporation (Aviation Maintenance) Fair Work Agreement 2024. The dispute centred on whether the agreement was in the best interests of the employees and if it complied with relevant labour laws. The Fair Work Commission was the court that assessed the application.

The primary legal issue was whether the agreement was made in good faith, covered all employees within the relevant scope, and complied with the Fair Work Act 2009. The court also needed to determine if the agreement provided fair and reasonable terms for the employees. The secondary issue was whether the agreement adequately represented the interests of the employees and if it met the criteria for approval as per the relevant legislation.

The Fair Work Commission found that the agreement was made in good faith and covered all employees within the scope of the aviation maintenance industry. The court confirmed that the agreement provided fair and reasonable terms for the employees, as it included provisions for wages, hours of work, and other employment conditions. The Commission also concluded that the agreement met the criteria for approval under the Fair Work Act 2009. Consequently, the application for approval of the agreement was successful.

The Fair Work Commission approved the Federal Express Corporation (Aviation Maintenance) Fair Work Agreement 2024, effective from the date of the decision. The agreement was set to be registered and binding on all employees within the scope of the agreement.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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