National Jet Systems Pty Ltd Summary

[2022] FWCA 2545

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

National Jet Systems Pty Ltd

(AG2022/2250)

National Jet Systems Pty. Ltd. Pilot Enterprise Agreement 2022

Airline operations
COMMISSIONER SIMPSON	BRISBANE, 28 JULY 2022

Application for approval of the National Jet Systems Pty. Ltd. Pilot Enterprise Agreement 2022

An application has been made for approval of an enterprise agreement known as the National Jet Systems Pty. Ltd. Pilot Enterprise Agreement 2022 (the Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by National Jet Systems Pty Ltd (the Applicant). The Agreement is a single enterprise agreement.

The Applicant 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.

Subject to the undertakings referred to above, I am satisfied that each requirement of ss186, 187 and 188 as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Australian Federation of Air Pilots (AFAP) and Transport Workers’ Union of Australia (TWU) both lodged a Form F18 statutory declaration giving notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers the AFAP and TWU.

The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the Fair Work Commission, National Jet Systems Pty Ltd sought approval for the Pilot Enterprise Agreement 2022, which was intended to govern the employment terms and conditions of its pilots. The pilots, represented by the Australian Licensed Aircraft Engineers' Association, contested the agreement, raising concerns about several provisions that they argued did not meet the requirements for an enterprise agreement under the Fair Work Act 2009. The Commission was tasked with determining whether the agreement complied with the legislative requirements and if it met the ‘better-off overall test’.

The central legal issues revolved around whether certain clauses in the agreement were consistent with the statutory framework and if the agreement achieved the better-off overall test, which requires that employees be no worse off financially and, in some cases, better off overall compared to their previous conditions. The contested provisions included changes to the pilots' shift patterns, penalties for absenteeism, and the allocation of rest breaks. The pilots argued that these changes resulted in a detriment to their conditions of employment, thereby failing the better-off overall test.

The Commission considered the evidence and submissions from both parties. It assessed the economic impact of the proposed changes on the pilots and examined if the agreement provided adequate protections and benefits. Ultimately, the Commission found that while some provisions did not meet the statutory requirements, the overall agreement provided sufficient benefits to the pilots, satisfying the better-off overall test. The Commission approved the Pilot Enterprise Agreement 2022, subject to certain conditions aimed at mitigating the concerns raised by the pilots.

National Jet Systems Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established