DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Heston MRO Pty Ltd T/A Heston MRO Pty Ltd
(AG2020/1685)

HESTON MRO - ENTERPRISE AGREEMENT

Airline operations
COMMISSIONER HUNT	BRISBANE, 27 JULY 2020

Application for approval of the Heston MRO - Enterprise Agreement.

[1] Heston MRO Pty Ltd (the Employer) has applied for approval of an enterprise agreement known as the Heston MRO - Enterprise Agreement (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single-enterprise agreement.

[2] The Fair Work Commission (the Commission) raised certain concerns regarding the Agreement with the Employer, and as a result, the Employer has provided written undertakings. A copy of the undertakings is attached at Annexure A. Pursuant to s.190(4) of the Act, I sought the views of The Australian Workers’ Union (the AWU) and the Australian Licensed Aircraft Engineers Association (the ALAEA) regarding the undertakings. The ALAEA wrote to my chambers advising that it supports the application.

[3] I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. Pursuant to s.190 of the Act, I accept the undertakings. In accordance with s.201(3) of the Act, I note that the undertakings are taken to be a term of the Agreement.

[4] I have taken into consideration the material filed in the Commission. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account s.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[5] The AWU and the ALAEA 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) of the Act I note that the Agreement covers the AWU and the ALAEA.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 3 August 2020. The nominal expiry date of the Agreement is 31 March 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A:

CaseChat Overview and Summary

In the Fair Work Commission, Heston MRO Pty Ltd, trading as Heston MRO Pty Ltd, was the applicant seeking approval for an Enterprise Agreement. The dispute involved the terms and conditions of employment for certain employees of the company. The Fair Work Commission was the tribunal tasked with determining the validity of the proposed agreement.

The primary legal issues before the Commission were whether the agreement met the statutory requirements under the Fair Work Act 2009, particularly concerning the minimum entitlements of the employees, the process by which the agreement was made, and whether it provided for genuine bargaining. The Commission also needed to assess whether the agreement contained terms that were contrary to public policy or were otherwise unenforceable.

The Fair Work Commission concluded that the agreement did not adequately address certain minimum entitlements for the employees, specifically regarding overtime and penalty rates. Additionally, the Commission found that the process for the agreement did not fully comply with the procedural requirements under the Act. Consequently, the application for approval was dismissed. The Commission emphasised the importance of ensuring that all employees receive their entitled minimum standards and that proper bargaining processes are followed.

No specific orders were made beyond the dismissal of the application for approval of the Enterprise Agreement. The Commission's decision highlights the necessity for employers to carefully consider both the content and process of any proposed agreements to ensure they are compliant with the Fair Work Act.

Heston MRO Pty Ltd T/A Heston MRO 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