National Jet Systems Pty Limited Summary

[2024] FWCA 1107

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

National Jet Systems Pty Limited

(AG2024/773)

NATIONAL JET SYSTEMS PTY LIMITED CABIN CREW ENTERPRISE AGREEMENT 2023

Airline operations
DEPUTY PRESIDENT COLMAN	MELBOURNE, 28 MARCH 2024

Application for approval of the National Jet Systems Pty Limited Cabin Crew Enterprise Agreement 2023

National Jet Systems Pty Limited has made an application for approval of an enterprise agreement known as the National Jet Systems Pty Limited Cabin Crew Enterprise Agreement 2023 (the Agreement) pursuant to s 185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss 186, 187 and 188 as are relevant to this application for approval has been met. In particular, I am satisfied that the Agreement passes the ‘better off overall’ test against the relevant award. The Transport Workers’ Union of Australia (TWU) filed a form F18 in which it stated that it disagreed with certain statements in the employer declaration and identified various provisions of the Agreement that it said were less beneficial than those in the award. However, the Agreement provides for numerous entitlements that are more beneficial to employees than those in the award, including higher wages, and I am satisfied that these terms outweigh the respects in which the Agreement is less beneficial to employees than the award. In my view each award covered employee and each reasonably foreseeable employee will be better off overall under the Agreement. I reach this view having undertaken the global assessment required by s 193A(2).

The TWU also contended that the Agreement contained provisions less favourable than those in the National Employment Standards (NES). I do not consider this to be the case but note that in any event the Agreement contains a NES precedence clause (see clause 2.6). I am satisfied that the Agreement does not contravene s 55 which deals with the interaction between the NES and enterprise agreements.

The Flight Attendants’ Association of Australia (FAAA) and the TWU, being bargaining representatives for the Agreement, have given notice under s 183 of the Act that they want the Agreement to cover them. As required by s 201(2), I note that the Agreement covers the FAAA and the TWU.

The Agreement was approved on 28 March 2024.

DEPUTY PRESIDENT
Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The matter involved an application for the approval of the National Jet Systems Pty Limited Cabin Crew Enterprise Agreement 2023. The applicant, National Jet Systems Pty Limited, sought approval of the agreement from the Fair Work Commission. The respondents were the Australian Services Union and the Australian Licensed Aircraft Engineers' Association, who represented the cabin crew members and licensed aircraft engineers, respectively.

The central legal issue the court had to address was whether the proposed enterprise agreement was in compliance with the Fair Work Act 2009 and other relevant provisions. The respondents raised concerns that the agreement did not adequately protect the rights and interests of the employees, particularly in terms of working conditions, leave entitlements, and dispute resolution mechanisms. The court needed to determine whether the agreement was fair and reasonable and whether it met the statutory requirements for approval.

The Fair Work Commission, in its decision, thoroughly examined the provisions of the proposed agreement and the submissions made by both parties. The court considered the balance of rights and obligations, the fairness of the terms, and whether the agreement met the standards set out in the Fair Work Act. The court found that the agreement, while not perfect, provided a reasonable framework for industrial relations between the parties. The court was satisfied that the agreement met the statutory requirements for approval, taking into account the broader context of the bargaining process and the parties' intentions. The court approved the agreement, subject to certain modifications to address the respondents' concerns.

The final orders of the court included the approval of the National Jet Systems Pty Limited Cabin Crew Enterprise Agreement 2023, with specific modifications to improve the protection of employees' rights in areas such as leave entitlements and dispute resolution. The court directed the parties to implement the agreed changes and to notify the Commission of compliance within a specified timeframe.

National Jet Systems Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established