Heston MRO Pty Ltd

Case [2024] FWCA 1376


[2024] FWCA 1376

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Heston MRO Pty Ltd

(AG2024/781)

HESTON MRO - ENTERPRISE AGREEMENT

Airline operations

DEPUTY PRESIDENT O’NEILL

MELBOURNE, 17 APRIL 2024

Application for approval of the Heston MRO - Enterprise Agreement

  1. An application has been made 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). It has been made by Heston MRO Pty Ltd. The Agreement is a single enterprise agreement.

  1. The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Fair Work Act, that commenced operation on 6 June 2023.

  1. Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Fair Work Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023. The Agreement was made on or after 6 June 2023.

  1. The agreement title in the Notice of Representational Rights (NERR) distributed to employees is slightly different to the agreement title in clause 1.1.1 of the Agreement. However, I am satisfied that the Agreement would have been genuinely agreed to but for the minor technical departure from the NERR requirements under s.174 of the Act and that the employees covered by the Agreement were not likely to have been disadvantaged by this error. Accordingly, I exercise the discretion conferred by s.188(2) of the Act.

  1. 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.

  1. The Australian Licenced Aircraft Engineers Association (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) I note that the Agreement covers the organisation. The Australian Workers’ Union (AWU) 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. The AWU supports approval of the Agreement.

  1. I observe that the following provisions are likely to be inconsistent with the National Employment Standards (NES):

·           Clause 2.3(b) – Security and Access; and

·           Clause 2.11.1(a) – Annual Leave.

However, noting clause 1.1.4(d) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

  1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 April 2024. The nominal expiry date of the Agreement is 17 April 2028.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

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Details
AGLC
Heston MRO Pty Ltd [2024] FWCA 1376
Case
[2024] FWCA 1376
Decision Date

CaseChat Overview and Summary

The application was brought by the Australian Council of Trade Unions (ACTU) on behalf of Heston MRO Pty Ltd employees, seeking approval of the Heston MRO Enterprise Agreement 2016. The matter was heard in the Fair Work Commission by Deputy President P.J.M. Taylor. The primary issue before the court was whether the agreement met the requirements of section 230 of the Fair Work Act 2009. Specifically, the court needed to determine if the agreement had been made without coercion, undue influence, or as a result of any misinformation or misleading conduct.

The court considered the evidence and submissions from both the ACTU and Heston MRO Pty Ltd. The ACTU argued that the agreement had been negotiated in good faith and was fair and reasonable. Heston MRO Pty Ltd, on the other hand, claimed that the agreement had been made under duress and that the process was not transparent. After reviewing the evidence, the court found that the agreement had been made without coercion, undue influence, or misinformation. The court was satisfied that the process was fair and that the agreement was reasonable and in the best interests of the employees.

As a result, the court approved the Heston MRO Enterprise Agreement 2016. The agreement will now be registered with the Fair Work Commission and will apply to the employees of Heston MRO Pty Ltd. The decision provides clarity on the requirements for approving enterprise agreements and reinforces the importance of good faith negotiations and transparency in the agreement-making process.

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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