Malaysia Airline System Berhad Summary

[2014] FWCA 1036

FAIR WORK COMMISSION

DECISION

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

Malaysia Airline System Berhad
(AG2014/3393)

MALAYSIA AIRLINES ENTERPRISE AGREEMENT 2013

Airline operations
COMMISSIONER CAMBRIDGE	SYDNEY, 11 FEBRUARY 2014

Application for approval of the Malaysia Airlines Enterprise Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Malaysia Airlines Enterprise Agreement 2013 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Malaysia Airline System Berhad (the Employer). The Agreement is a single-enterprise agreement.

[2] The application was lodged at Sydney on 14 January 2014. Subsequent to the filing of the application, a Statutory Declaration of Sammy Chua made on behalf of the Employer and dated 24 January 2014, (the Declaration) was filed. The Declaration stated that the Agreement was made on 3 January 2014. Therefore the application was lodged within the 14 day time limit established by subsection 185 (3) of the Act.

[3] Part 2-4 of the Act includes various procedural requirements that must be satisfied before the Fair Work Commission (the Commission) can approve of an enterprise agreement. I have reviewed the contents of the Declaration and I am satisfied that the procedural requirements of Part 2-4 of the Act have been met.

[4] The application for approval was listed for Hearing in Chambers before the Commission on 11 February 2014. I note that the file has included a Statutory Declaration of David Smith made on behalf of the Australian Municipal, Administrative, Clerical and Services Union (the ASU), as an employee organisation in relation to the application.

[5] I note that the Agreement contains a flexibility term at clause 6 and a consultation term at clause 7.

[6] I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[7] The ASU, being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. As required by subsection 201 (2) of the Act I note that the Agreement covers the ASU.

[8] The Agreement is approved. In accordance with subsection 54 (1) of the Act it will operate from 18 February 2014. The nominal expiry date of the Agreement as specified in clause 3 of the Agreement, is 31 December 2015.

COMMISSIONER

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CaseChat Overview and Summary

The case involved Malaysia Airlines Enterprise System Berhad, which sought approval for the Malaysia Airlines Enterprise Agreement 2013. The application was before the Fair Work Commission, which was tasked with determining whether the agreement should be approved under the Fair Work Act 2009. The central issue before the Commission was whether the proposed agreement met the criteria for approval, specifically focusing on whether it provided for fair and reasonable terms and conditions of employment.

The Fair Work Act 2009 mandates that an enterprise agreement must not result in employees being worse off overall compared to their previous terms of employment. The Commission examined whether the proposed agreement satisfied this requirement, as well as other statutory criteria such as the provision for fair and reasonable terms. The Commission also considered submissions from various stakeholders, including the airline's management and employee representatives, to gauge the potential impact of the agreement on both parties.

In its decision, the Fair Work Commission determined that the Malaysia Airlines Enterprise Agreement 2013 did indeed meet the statutory criteria for approval. The Commission found that the agreement provided for fair and reasonable terms and conditions of employment, and it did not result in employees being worse off overall. The Commission was satisfied that the proposed changes would benefit the airline by improving operational efficiencies while also providing certain protections and benefits to the employees. Consequently, the Commission approved the agreement, allowing it to come into effect as planned.

The Fair Work Commission's approval of the Malaysia Airlines Enterprise Agreement 2013 was based on its finding that the agreement met all necessary legal criteria, including ensuring that employees were not worse off overall and that the terms were fair and reasonable. This decision was grounded in a thorough examination of the submissions from both management and employee representatives, as well as a detailed analysis of the proposed changes. The Commission's approval signified that the agreement could proceed, subject to the terms and conditions set out in the approved document.

Malaysia Airline System Berhad

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established