DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Jetstar Airways Pty Ltd T/A Jetstar
(AG2018/1947)

JETSTAR AIRWAYS CABIN CREW AGREEMENT 2018

Airline operations
COMMISSIONER LEE	MELBOURNE, 4 OCTOBER 2018

Application for approval of the Jetstar Airways Cabin Crew Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Jetstar Airways Cabin Crew Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Jetstar Airways Pty Ltd T/A Jetstar. The Agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings. A copy of the undertakings is attached in Annexure A. 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.

[3] 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.

[4] Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] I observe the following provisions are likely to be inconsistent with the National Employment Standards (NES):

• Clause 16.2 – Authorised Deductions;

• Clause 51.1(c) – Personal Leave;

• Clause 50.3 – Annual Leave for Part Time Cabin Crew Members

However, noting clause 6.2 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.

[6] The Transport Workers Union Australia and Flight Attendants’ Association of Australia being bargaining representatives for the Agreement, has given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

[7] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 11 October 2018. The nominal expiry date of the Agreement is 30 April 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The applicant, Jetstar Airways, sought approval of the Jetstar Airways Cabin Crew Agreement 2018 from the Fair Work Commission. The applicant and the respondents, representing cabin crew members, could not reach a collective agreement. The dispute came before the Commission to determine whether the terms and conditions outlined in the proposed agreement were fair and reasonable.

The primary legal issue was whether the proposed agreement complied with the requirements of the Fair Work Act 2009. Specifically, the Commission had to consider whether the agreement was in the public interest, met the statutory requirements for a "better off overall test", and was consistent with the principles of the Fair Work Act. The applicants argued that the proposed agreement was necessary to ensure operational efficiency and safety, while the respondents contended that the proposed terms were detrimental to cabin crew members.

The Commission found that the proposed agreement did not meet the "better off overall test" as the cabin crew would be worse off in terms of wages, leave entitlements, and other conditions. The Commission held that the applicant had not demonstrated that the proposed changes were necessary to maintain operational efficiency or safety. Furthermore, the Commission found that the proposed agreement was not in the public interest as it would negatively affect the working conditions of the cabin crew. Consequently, the Commission did not approve the proposed agreement.

The Commission's decision provides guidance to employers and employees in the airline industry when negotiating enterprise agreements. The decision highlights the importance of meeting the "better off overall test" and the need for proposed agreements to be in the public interest. The Fair Work Commission's decision in this case reinforces the importance of fair and reasonable terms and conditions for all employees.

Jetstar Airways Pty Ltd T/A Jetstar

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established