Ms Melissa Wood; Eastern Australia Airlines Pty Limited

[2019] FWC 7112

[2019] FWC 7112

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.318 - Application for an order relating to instruments covering new employer and transferring employees

Ms Melissa Wood; Eastern Australia Airlines Pty Limited
(AG2019/3167)

Airline operations
DEPUTY PRESIDENT CROSS	SYDNEY, 15 OCTOBER 2019

Application in relation to transfer of business - transferable instrument - application that the transferable instrument not cover transferring employees – statutory preconditions established - orders granted.

[1] This is an application, pursuant to s.318 of the Fair Work Act 2009 (Cth) (the “Act”) filed by Ms Melissa Wood and Eastern Australia Airlines Pty Limited (collectively referred to as the “Applicants”), which seeks orders from the Fair Work Commission (the “Commission”) that a transferable instrument, being the Australian Services Union (Qantas Airways Limited) Agreement 11 (the “Agreement”) will not apply to the Applicants if Ms Wood transfers from Qantas Airways Limited (“Qantas”) to Eastern Australia Airlines Pty Limited (“Eastern”) (s.311). Both companies are associated entities for the purposes of s.311(6) of the Act, within the meaning of s.50AAA of the Corporations Act 2001 (Cth).

[2] Section 318 sets out the relevant provisions of the Act which are to be applied to this application. They are expressed as follows:

“318 Orders relating to instruments covering new employer and transferring employees

Orders that the FWC may make

(1) The FWC may make the following orders:

(a)  an order that a transferable instrument that would, or would be likely to, cover the new employer and a transferring employee because of paragraph 313(1)(a) does not, or will not, cover the new employer and the transferring employee;

(b)  an order that an enterprise agreement or a named employer award That covers the new employer covers, or will cover, the transferring employee.

Who may apply for an order

(2) The FWC may make the order only on application by any of the following:

(a) the new employer or a person who is likely to be the new employer;

(b)  a transferring employee, or an employee who is likely to be a transferring employee;

(c)  if the application relates to an enterprise agreement—an employee organisation that is, or is likely to be, covered by the agreement;

(d)  if the application relates to a named employer award—an employee organisation that is entitled to represent the industrial interests of an employee referred to in paragraph (b).

Matters that the FWC must take into account

(3)  In deciding whether to make the order, the FWC must take into account the following:

(a)  the views of:

(i) the new employer or a person who is likely to be the new employer; and

(ii)  the employees who would be affected by the order;

(b)  whether any employees would be disadvantaged by the order in relation to their terms and conditions of employment;

(b) if the order relates to an enterprise agreement—the nominal expiry date of the agreement;

(d)  whether the transferable instrument would have a negative impact on the productivity of the new employer’s workplace;

(e)  whether the new employer would incur significant economic disadvantage as a result of the transferable instrument covering the new employer;

(f)  the degree of business synergy between the transferable instrument and any workplace instrument that already covers the new employer;

(g)  the public interest.

Restriction on when order may come into operation

(4) The order must not come into operation in relation to a particular transferring employee before the later of the following:

(a) the time when the transferring employee becomes employed by the new employer;

(b)  the day on which the order is made.”

[3] In the Applicants’ Form F40 – Application for Orders in Relation to a Transfer of Business – Ms Wood and Mr Michael O’Neil (Head of Industrial Relations, Associated Airlines & Services) explained the background to the application.

[4] In brief, Ms Wood has been employed by Qantas on a permanent, full-time basis since 16 September, 2013, most recently as a Senior Officer, Payroll Services. On 15 July, 2019, Ms Wood also commenced a maximum term secondment with Eastern. This involved Ms Wood taking leave without pay from her employment with Qantas and taking up employment on a full-time, maximum term basis with Eastern in the role of Coordinator Base Operations Support (the “Secondment”). This Secondment will come to an end on 14 January, 2020, if it is not brought to an end beforehand. Ms Wood has also been offered an ongoing position as a Coordinator Base Operations Support at Eastern, subject to the approval of this application by the Commission, and Ms Wood resigning from her employment with Qantas. The work she will perform as a Coordinator Base Operations Support at Eastern will be the same, or substantially the same, as the work she performed at Qantas.

[5] Having reviewed the filed documentation and considered the submissions of the Applicants, I am satisfied that all the requirements of s.318 of the Act have been met. Specifically, I have taken into account all of the matters in s.318(3) in arriving at my decision and note, in particular, Ms Wood’s personal and professional reasons for seeking employment with Eastern. Accordingly, I propose to issue the orders sought by the Applicants, by consent, which will accompany the publication of this decision.

[6] Pursuant to s.318(4) of the Act, the orders shall take effect from today.

DEPUTY PRESIDENT

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