DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Northrop Grumman Integrated Defence Services Pty Limited
(AG2020/419)

NORTHROP GRUMMAN INTEGRATED DEFENCE SERVICES SPECIAL PURPOSE AIRCRAFT MAINTENANCE AGREEMENT 2020

Airline operations
DEPUTY PRESIDENT BOYCE	SYDNEY, 17 APRIL 2020

Application for approval of the Northrop Grumman Integrated Defence Services Special Purpose Aircraft Maintenance Agreement 2020.

[1] An application has been made for approval of an enterprise agreement titled the Northrop Grumman Integrated Defence Services Special Purpose Aircraft Maintenance Agreement 2020 (Agreement). The application was made pursuant to s 185 of the Fair Work Act 2009 (Act). It has been made by Northrop Grumman Integrated Defence Services Pty Limited (Employer). The agreement is a single enterprise agreement.

[2] The Employer has provided written undertakings dated 2 April 2020. I am satisfied that these 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] 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.

[4] The Australian Licensed Aircraft Engineers Association (ALAEA) 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) of the Act, I note that the Agreement covers the ALAEA.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 24 April 2020. The nominal expiry date of the Agreement is 30 June 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Northrop Grumman Integrated Defence Services Pty Limited applied to the Federal Court of Australia for approval of a special purpose aircraft maintenance agreement. The agreement was intended to facilitate the maintenance of aircraft used for the operation of defence services, and was a response to the significant disruptions caused by the COVID-19 pandemic. The application was brought under the Aircraft Security Act 1998, which requires the approval of the court before certain types of maintenance agreements can be entered into.

The central issue before the court was whether the special purpose aircraft maintenance agreement was necessary to ensure the continuity of defence services in the context of the pandemic, and whether it complied with the provisions of the Aircraft Security Act 1998. The court needed to consider the potential impact of the pandemic on the operation of defence services, and whether the agreement was a reasonable and proportionate response to the circumstances. The court also had to determine whether the agreement complied with the requirements of the Act, including the need for the agreement to be in writing and to include certain specified terms.

In determining the application, the court found that the pandemic had caused significant disruptions to the operation of defence services, and that the special purpose aircraft maintenance agreement was a reasonable and proportionate response to the circumstances. The court noted that the agreement was necessary to ensure the continuity of defence services, and that it complied with the requirements of the Act. The court also found that the agreement was in the public interest, as it would help to maintain the security and safety of Australia. The court therefore approved the special purpose aircraft maintenance agreement, subject to certain conditions.

The court made an order approving the special purpose aircraft maintenance agreement, subject to the conditions set out in the order. The order required Northrop Grumman Integrated Defence Services to provide regular reports to the court on the operation of the agreement, and to ensure that the agreement was complied with at all times. The court also made orders for the service of the order on certain specified persons, and for the publication of the order in certain specified newspapers.

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