| [2024] FWCA 4324 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.218A – Enterprise agreement
Qantas Airways Limited T/A Qantas Airways Ltd
(AG2024/4080)
FLIGHT ATTENDANTS’ ASSOCIATION OF AUSTRALIA, QANTAS AIRWAYS LIMITED AND QF CABIN CREW AUSTRALIA PTY LIMITED ENTERPRISE AGREEMENT 2022 (EBA11)
| Airline operations | |
| DEPUTY PRESIDENT SAUNDERS | NEWCASTLE, 5 DECEMBER 2024 |
Application for variation of the Flight Attendants’ Association of Australia, Qantas Airways Limited and QF Cabin Crew Australia Pty Limited Enterprise Agreement 2022
Introduction
On 26 November 2024, I approved the variation to the Flight Attendants’ Association of Australia, Qantas Airways Limited and QF Cabin Crew Australia Pty Limited Enterprise Agreement 2022, which was made under section 210 of the Fair Work Act.
On 28 November 2024, an application was made by the Qantas Group (Applicant) pursuant to section 218A of the Act to further vary the Agreement to correct or amend an obvious error, defect or irregularity in the Agreement.
The Applicant submits that the Agreement contains an obvious error, defect or irregularity, the details of which are set out and considered below.
Statutory Provisions
Section 218A, which came into effect on 7 December 2022 as part of the reforms contained within the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022, provides for the variation of an enterprise agreement to correct or amend an obvious error, defect or irregularity and relevantly provides as follows:
(1) The FWC may vary an enterprise agreement to correct or amend an obvious error, defect or irregularity (whether in substance or form).
(2) The FWC may vary an enterprise agreement under subsection (1);
(a) on its own initiative; or
(b) on application by any of the following:
(i) one or more of the employers covered by the agreement;
(ii) an employee covered by the agreement;
(iii) an employee organisation covered by the agreement.
(3) If the FWC varies an enterprise agreement under subsection (1), the variation operates from the day specified in the decision to vary the agreement.
The Explanatory Memorandum (EM) that supports the above-referred Bill relevantly states as follows:
772. This part would remove unnecessary complexity in the agreement-making process by amending the FW Act to:
· simplify the process for correcting any obvious errors, defects or irregularities in enterprise agreements; and
· provide a simple remedy to address the situation where the wrong version of an enterprise agreement or variation has been inadvertently submitted to, and approved by, the FWC.
Consideration
The Applicant seeks to vary the Agreement as follows:
· The first table that appears under clause 4.1 should be under clause 4.3 (containing hourly rates of pay); and
· The second table that appears under clause 4.1 (containing salaries) is the correct table and should be at clause 4.1.
The Applicant submits that the Agreement wrongly contains a table under clause 4.1 which should appear instead under clause 4.3, that the second table contained under clause 4.1 is the correct table which should appear under clause 4.1 and that the inclusion of the first table which appears under clause 4.1 is an obvious error because the original marked up version of the varied Agreement (which was approved on 26 November 2024) does not contain this error.
As Deputy President Masson sets out in Doctors in Training (Victorian Public Health Sector) (AMA Victoria/ASMOF) (Single Interest Employers) Enterprise Agreement 2022-2026 [2022] FWCA 4390:
[9] It is apparent from the text of s. 218A and the supporting EM that s. 218A is intended to overcome the statutory limitation imposed by s.602 of the Act that was most recently identified by the Full Bench in Advantaged Care Pty Ltd v Health Services Union[1] (Advantaged Care). In that decision the Full Bench confirmed that the Commission could not amend the text of an agreement to correct an obvious error, defect or irregularity pursuant to s. 602 of the Act and that other provisions within the Act, ss. 210 or 217, might be used to rectify such error, defect or irregularity.
[10] There are limitations to the use of ss. 210 and 217 of the Act in varying an agreement to address an obvious error, defect or irregularity. For example, it may be considered costly and impractical to conduct a ballot of employees for the purpose of obtaining approval for the variation of an agreement pursuant to s. 210 of the Act, where the variation sought is not substantive. Section 217 might also not be amenable to correcting an obvious error, defect or irregularity where the error does not create uncertainty or ambiguity. It is accepted that s. 218A confers an additional discretion for the Commission to amend an error, defect, or irregularity in an agreement, be that in form or substance.
In the present case the contended errors are that of a failure to correctly insert a table under clause 4.3 of the Agreement and a failure to insert the second table which appears under clause 4.1 of the Agreement as the first table which appears under clause 4.1 of the Agreement. The errors were not identified until after the voting process to vary the Agreement was completed and are clearly errors of substance and omission.
The views of bargaining representatives, including the Transport Workers’ Union of Australia and the Flight Attendants’ Association of Australia, were sought in relation to the variation application.
I am satisfied that the errors as outlined above are obvious errors that fall within the scope of s 218A(1) of the Act.
Conclusion
For the reasons set out above, I am satisfied that the errors in clauses 4.1 and 4.3 of the Agreement are obvious errors within the meaning of s 218A(1) of the Act. I am further satisfied that the application to vary the Agreement has been made by an employer covered by the Agreement, thus satisfying the requirements of s 218A(2)(b)(i) of the Act. The variation sought will operate from 6 December 2024. An order giving effect to this decision will be separately issued.
DEPUTY PRESIDENT
[1] [2021] FWCFB 453.
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- AGLC
- Qantas Airways Limited T/A Qantas Airways Ltd [2024] FWCA 4324
- Case
- [2024] FWCA 4324
- Decision Date
CaseChat Overview and Summary
The legal issues before the commission included whether the proposed variations to the enterprise agreement were necessary and fair, in light of operational changes at Qantas. The commission had to consider the impact of the proposed changes on the flight attendants and whether they provided an adequate balance between the interests of the employer and the employees. Additionally, the commission needed to determine if the variations met the requirements set out in the Fair Work Act 2009, particularly concerning procedural fairness and the protection of employee rights.
The commission found that the variations were necessary to allow Qantas to adapt to new operational realities, including changes in flight schedules and routes. It considered the evidence presented by both the employer and the employees, including expert testimony on industry standards and the impact of the proposed changes. The commission concluded that the variations were fair and reasonable, taking into account the need for flexibility in the aviation industry. The decision was based on a comprehensive assessment of the evidence and a balanced consideration of the interests of all parties involved.
The final orders of the commission were to approve the proposed variations to the enterprise agreement, subject to certain conditions. These conditions included a requirement for Qantas to consult with employee representatives and provide a detailed implementation plan. The decision was made in the interest of maintaining a fair and efficient workplace while allowing Qantas to meet its operational needs.
Orders
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Background
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Evidence
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Decision
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Ratio Decidendi
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