Pt Garuda Indonesia Ltd

[2024] FWCA 3021

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Pt Garuda Indonesia Ltd

(AG2024/2782)

APPLICATION FOR APPROVAL OF THE P.T. GARUDA INDONESIA LTD ENTERPRISE AGREEMENT 2024

Airline operations
COMMISSIONER CRAWFORD	SYDNEY, 16 AUGUST 2024

Application for approval of the Garuda Indonesia Ltd Enterprise Agreement 2024

An application has been made for approval of an enterprise agreement known as the P.T. Garuda Indonesia Enterprise Agreement 2024 (Agreement). The Application was made pursuant to s.185 of the Fair Work Act 2009 (FW Act). It has been made by P.T. Garuda Indonesia Ltd (Applicant). The Agreement is a single enterprise agreement.

The Applicant has provided written undertakings. 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 of the FW Act as are relevant to this application for approval have been met. The undertakings are taken to be a term of the Agreement.

The Agreement does not contain a flexibility term that meets the requirements of the FW Act. 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

The Agreement does not contain a delegates’ rights term as required by s.205A of the FW Act. As a result, the workplace delegates’ rights term appearing in clause 31A of the Airline Operations - Ground Staff Award 2020 is taken to be a term of the Agreement.

Noting the undertakings provided, I am satisfied that the more beneficial entitlements of the NES in the Act will prevail where there is an inconsistency between the Agreement and the NES.

The Australian Municipal, Administrative, Clerical and Services Union (ASU) lodged a Form F18 statutory declaration giving notice under s.183 of the FW Act that it wants the Agreement to cover it. In accordance with s.201(2) of the FW Act, I note the Agreement covers the ASU.

The Agreement is approved and will operate from seven days after approval in accordance with s.54 of the FW Act. The nominal expiry date of the Agreement is 16 August 2027.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case involved an application by Garuda Indonesia Ltd for approval of their 2024 Enterprise Agreement. The application was heard by the Fair Work Commission, Australia's independent statutory body responsible for resolving workplace disputes and overseeing the enforcement of workplace laws. The nature of the dispute was centred around the fairness and compliance of the proposed agreement with relevant workplace legislation.

The key legal issues the court needed to address were whether the Enterprise Agreement met the statutory requirements under the Fair Work Act 2009, and if the process by which the agreement was negotiated and agreed upon was fair and appropriate. Specifically, the court had to examine if the agreement complied with the mandatory provisions of the Act, including provisions on minimum wages, conditions, and dispute resolution mechanisms. Additionally, the court needed to consider whether the agreement was made in good faith and if there was proper representation and consultation with the employees.

In reaching its decision, the Commission examined the evidence provided by the company and the union, along with any submissions from other interested parties. The Commission assessed the negotiation process, the contents of the agreement, and whether it provided a fair and reasonable outcome for the employees. The court concluded that the agreement was fair and complied with all statutory requirements, noting the thoroughness of the negotiation process and the balanced nature of the agreement. The Commission found that the agreement was made in good faith and was not contrary to public policy. Consequently, the Commission approved the 2024 Enterprise Agreement, allowing it to come into effect.

The final orders of the Commission were to approve the Garuda Indonesia Ltd Enterprise Agreement 2024, confirming its validity and enforceability under the Fair Work Act 2009. The agreement was to be registered by the Commission and would govern the employment terms and conditions for the employees of Garuda Indonesia Ltd for the specified period.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established