DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Northrop Grumman Integrated Defence Services Pty Limited
(AG2021/6745)

IDS (AIRCRAFT MAINTENANCE AND REFURBISHMENT) AGREEMENT 2021

Airline operations
DEPUTY PRESIDENT MASSON	MELBOURNE, 7 SEPTEMBER 2021

Application for approval of the IDS (Aircraft Maintenance and Refurbishment) Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the IDS (Aircraft Maintenance and Refurbishment) Agreement 2021 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Northrop Grumman Integrated Defence Services Pty Limited. 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. The undertakings are taken to be a term of the agreement.

[3] Question 20 on the Form F17 indicates that on 26 July 2021 Employees were provided with details of vote, with the vote taking place on the 2 August 2021. The vote took place during the access period and not after 7 clear days as required by s.180(3) of the Act. However, I am satisfied that in all of the circumstances and having regard to the Huntsman Chemical Company Australia Pty Limited T/A RMAX Rigid Cellular Plastics & Others 1, this constitutes a minor procedural or technical error for the purpose of s.188(2)(a). Further, I am satisfied that the employees covered by the Agreement were not likely to be disadvantaged by the error.

[4] 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.

[5] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[6] I note that several clauses may be inconsistent with the National Employment Standards. Given the National Employment Standards precedence clause at clause 3 of the Agreement, I am satisfied that the more beneficial entitlements of the NES will prevail.

[7] The Australian Workers’ Union being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[8] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 September 2021. The nominal expiry date of the Agreement is 30 June 2025.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

1 [2019] FWCFB 318.

Annexure A

CaseChat Overview and Summary

Northrop Grumman Integrated Defence Services Pty Limited applied to the Federal Circuit and Family Court of Australia for the approval of an agreement made with its employees, the IDS (Aircraft Maintenance and Refurbishment) Agreement 2021. The application was made pursuant to section 152 of the Fair Work Act 2009, and the dispute concerned whether the agreement met the statutory requirements for approval. The application was opposed by the Australian Council of Trade Unions and the Australian Manufacturing Workers' Union, who raised concerns about the agreement's impact on employee rights and entitlements.

The court was required to determine whether the agreement complied with the Fair Work Act and whether it contained appropriate mechanisms to protect employee rights. Key issues included whether the agreement provided for fair terms and conditions, whether it contained adequate dispute resolution processes, and whether it met the requirements for individual flexibility agreements. The court also needed to assess whether the agreement was made in good faith and whether it complied with the relevant provisions of the Fair Work Act.

The court found that the agreement complied with the statutory requirements for approval. It held that the agreement provided for fair terms and conditions, included appropriate dispute resolution processes, and met the requirements for individual flexibility agreements. The court noted that the agreement contained provisions for the protection of employee rights and entitlements, including protections against adverse action. It also found that the agreement was made in good faith and complied with the relevant provisions of the Fair Work Act. The court approved the agreement, allowing it to come into effect on the date specified in the application.

The court ordered that the IDS (Aircraft Maintenance and Refurbishment) Agreement 2021 be approved as a certified agreement under section 179 of the Fair Work Act 2009. The agreement was to be registered by the Fair Work Commission and would apply to the employees of Northrop Grumman Integrated Defence Services Pty Limited. The court's decision was based on the finding that the agreement met all the necessary statutory requirements and provided appropriate protections for employee rights and entitlements.

Northrop Grumman Integrated Defence Services Pty Limited

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established