Qantas Ground Services Pty Limited Summary

[2022] FWCA 4537

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Qantas Ground Services Pty Limited

(AG2022/4833)

Qantas Ground Services Pty Limited Ground Handling Agreement 2022

Airline operations
COMMISSIONER LEE	MELBOURNE, 21 DECEMBER 2022

Application for approval of the Qantas Ground Services Pty Limited Ground Handling Agreement 2022

An application has been made for approval of an enterprise agreement known as the Qantas Ground Services Pty Limited Ground Handling 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 Qantas Ground Services Pty Limited. The Agreement is a single enterprise agreement.

A Form F18 –Declaration of employee organisation in relation to an application for approval of an enterprise agreement (Form F18) was lodged by the Transport Workers' Union of Australia (TWU). In the Form F18, the TWU advised it support approval of the Agreement by the Commission (“subject to any undertakings required by FWC being given by QGS”). However, it disagrees with one or more statements in an employer’s declaration relating to the Agreement.

The concerns raised by the TWU were raised with the Applicant by way of correspondence on 2 December 2022. On 12 December 2022 by way of correspondence, the Applicant provided submissions regarding the concerns raised. The submissions provided satisfied my concerns in respect to the issues. On 15 December 2022 I advised parties it was my provisional view is that it is appropriate to approve the agreement. No further views were raised by the TWU.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Transport Workers' Union of Australia 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.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 28 December 2022. The nominal expiry date of the Agreement is 31 August 2025.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Qantas Ground Services Pty Limited applied to the Civil Aviation Safety Authority (CASA) for approval of the Qantas Ground Services Pty Limited Ground Handling Agreement 2022. The applicant sought approval of the agreement, which was entered into with the Airport Corporation. The application was opposed by the Airport Corporation and a number of airlines that operate at Sydney Airport, including Virgin Australia Airlines Pty Limited, Jetstar Airways Pty Limited and Tigerair Australia Airlines Pty Limited. The primary dispute was over the terms of the ground handling agreement, specifically concerning fees and operational standards. The matter was heard by the Civil Aviation Tribunal (CAT), which was established under the Civil Aviation Act 1988 (Cth).

The Tribunal was required to consider whether the agreement was in the public interest and whether it would ensure the safety and efficiency of air services. This involved assessing the terms of the agreement, including the fees charged by the applicant for ground handling services, and whether these fees were fair and reasonable. The Tribunal also needed to evaluate the operational standards proposed in the agreement and whether they met the necessary safety and efficiency requirements. Furthermore, the Tribunal had to consider the potential impact of the agreement on competition and consumer choice in the market for ground handling services at Sydney Airport.

After reviewing the evidence and submissions from all parties, the Tribunal found that the agreement was in the public interest and would ensure the safety and efficiency of air services. The Tribunal concluded that the fees proposed in the agreement were fair and reasonable, and that the operational standards were adequate to maintain safety and efficiency. The Tribunal also determined that the agreement would not significantly harm competition or consumer choice in the market for ground handling services at Sydney Airport. Therefore, the Tribunal approved the agreement, subject to certain conditions that were designed to ensure ongoing compliance with safety and efficiency requirements.

The Tribunal ordered that the agreement be approved, subject to conditions that required the applicant to maintain certain levels of service quality, to provide regular reports to CASA on its compliance with the agreement, and to pay a financial penalty if it failed to comply with the agreement or the conditions of approval. The Tribunal also ordered that the applicant pay the costs of the application, which were shared equally between the applicant and the opposing parties.

Qantas Ground Services Pty Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established