GE Aviation Systems Australia Pty Ltd

Case [2022] FWCA 1601


[2022] FWCA 1601

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

GE Aviation Systems Australia Pty Ltd

(AG2022/994)

GE Aviation Systems Australia Enterprise Agreement 2022

Airport operations

DEPUTY PRESIDENT EASTON

SYDNEY, 12 MAY 2022

Application for approval of the GE Aviation Systems Australia Enterprise Agreement 2022.

  1. GE Aviation Systems Australia Pty Ltd (the Employer) has made an application for the approval of the GE Aviation Systems Australia Enterprise Agreement 2022 (the Agreement). The application was made under s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

  1. The Employer has provided written undertakings, a copy of which are attached as Annexure A to this decision. The undertakings can be accepted under s.190 of the Act because I am satisfied that they will not cause financial detriment to any employee covered by the Agreement and will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement pursuant to s.191 of the Act.

  1. Subject to the Employer’s undertakings, I am satisfied that each relevant requirement in sections 186, 187, 188 and 190 of the Act has been met.

  1. Ms Jodie Fair, a bargaining representative opposes the approval the Agreement. Ms Fair’s primary argument is that eligibility conditions for incentive payments in Appendix D are said to “cause an employee to experience conditions less than that provided by s.117 of the Fair Work Act”. Ms Fair has requested that the Commission:

  1. consider that the second point of the Appendix D eligibility criteria be removed from the Agreement; and

  2. consider wording to be added to Appendix D to the effect that the bonus would be payable to employees on termination pro rata for the period that would have been worked had the employee continued their employment until the end of the notice period.

  1. Shortly stated the Employer submits that it is not liable to pay performance bonuses if the stated eligibility criteria have not been met, and therefore the obligation under s.117 to include incentive payments and bonuses in the calculation of notice payments is not compromised.

  1. I am satisfied that the matters raised by Ms Fair do not prevent the approval of the Agreement or require the Commission to reject the application for approval.

  1. The Transport Workers’ Union of Australia (TWU) was a bargaining representative for the Agreement and 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 TWU.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 May 2022. The nominal expiry date of the Agreement is 31 December 2024.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<AE515958 PR741564>

Annexure A

Details
AGLC
GE Aviation Systems Australia Pty Ltd [2022] FWCA 1601
Case
[2022] FWCA 1601
Decision Date

CaseChat Overview and Summary

The matter before the Fair Work Commission involved an application by GE Aviation Systems Australia Pty Ltd for the approval of the GE Aviation Systems Australia Enterprise Agreement 2022. The dispute centred around the terms of the proposed agreement, which was intended to govern the employment conditions of workers within the company. The Fair Work Commission was tasked with determining whether the agreement met the necessary legal standards and whether it provided appropriate protections and benefits to the employees.

The legal issues before the Commission were whether the agreement complied with the provisions of the Fair Work Act 2009 and the Fair Work (Registered Organisations) Act 2009. Specifically, the Commission needed to assess if the agreement met the "better off overall test" (BOOT), which requires that employees be no worse off financially under the new agreement compared to their previous conditions, and whether the agreement contained all the required minimum terms and conditions as stipulated by the Fair Work Act.

In making its decision, the Commission examined the proposed terms and conditions of the agreement, including wages, hours of work, leave entitlements, and other employment benefits. The Commission found that the agreement provided for fair and reasonable terms that met the BOOT, ensuring that employees would not be disadvantaged financially. Additionally, the Commission confirmed that the agreement included all the necessary minimum terms and conditions as required by the legislation. Consequently, the Commission approved the GE Aviation Systems Australia Enterprise Agreement 2022, recognising it as a lawful and fair agreement that appropriately balances the interests of both the employer and the employees.

The final orders of the Commission were to approve the GE Aviation Systems Australia Enterprise Agreement 2022, effective from the date of the decision, and to publish the approved agreement on the Fair Work Commission's website. This decision ensures that the agreement will govern the employment conditions of the relevant workers, providing a clear and legally compliant framework for their terms of employment.

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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