Regional Express Holdings LimitedvAustralian Licenced Aircraft Engineers Association, The
[2012] FWA 6202
•23 JULY 2012
[2012] FWA 6202 |
|
STATEMENT AND RECOMMENDATIONS |
Fair Work Act 2009
s.240 - Application to deal with a bargaining dispute
Regional Express Holdings Limited
v
Australian Licenced Aircraft Engineers Association, The
(B2012/453)
COMMISSIONER HAMPTON | ADELAIDE, 23 JULY 2012 |
Bargaining dispute – recommendations issued on outstanding matters.
[1] This matter concerns an application that has been made by Regional Express Holdings Limited (REX) pursuant to s.240 of the Fair Work Act 2009 seeking assistance to resolve a bargaining dispute.
[2] The proposed agreement would apply to the aircraft maintenance engineers employed by REX at various bases in Australia and these parties are currently subject to the Regional Express Aircraft Engineers Agreement 2005. The Australian Licenced Aircraft Engineers Association (ALAEA) is a party to the existing agreement and represents the engineers.
[3] The matter has been before FWA on a number of occasions and considerable progress has been made. Comprehensive recommendations were made by the Tribunal in February 2012 and by the time of the resumption of this matter in Sydney on Friday 20 July 2012 only a few outstanding matters remained.
[4] One of the outstanding matters relates to a change to a profit share provision (incentive payment scheme) that has been proposed by REX very late in the process. Indeed, this occurred after an in-principle agreement had been reached but before any formal processes to seek employee endorsement had commenced. The ALAEA is rightly concerned about the timing of this development.
[5] However, the actual change that is now proposed is a reconfiguration of the existing incentive payments. Although it may produce a lower payment than anticipated in the first year, the new figure of 7.5% per annum (subject to the existing conditions but without a lower percentage should profits fall from year to year) is in my view a reasonable arrangement. It provides for certainty to all parties and some consistency within the organisation. As part of the overall package that has been negotiated by the parties it is not an unreasonable proposal, albeit very late in the process. I will return to the concerns arising from this development in terms of the negotiating process as part of the recommendations in this matter.
[6] The conference also considered the circumstances applying to “outside” aircraft, being non-REX airlines craft that are serviced by REX Engineers. This category does not include the AAPA aircraft. A proposal has arisen from the conference that deals with the issues and should be included in the final package.
[7] The parties have also agreed to make minor changes to the nominal expiry date (and the schedules within the proposed agreement). This involves aligning the nominal expiry date and final payments with the end of the last pay period in the 2013/14 financial year. Further, some drafting changes to the dispute resolution procedure will be made to meet the requirements of the Act.
[8] Subject to the above changes, I consider that the proposed agreement package as it now stands is a comprehensive and commendable proposal that should be adopted by all parties. I have indicated that I would issue recommendations consistent with that view.
RECOMMENDATIONS
1. THAT the parties include a provision within the proposed agreement the reflects the following arrangements:
Outside Aircraft Payment
The clause will apply only to work undertaken by Aicraft Engineers on outside aircraft when the following conditions apply:
“Outside aircraft” for this provision means non-REX airlines craft but does not include AAPA aircraft.
Where an engineer is not already being paid (licence payments etc) for the relevant aircraft type or its equivalent, and if they are required by REX to certify work on an outside aircraft, they will be paid a single flat amount of $415 for any four weeks in which they do so.
This provision will not apply to the existing EMB120 arrangements, which will continue to operate.
(Note: The B200 arrangements in clause 11.6.8 of the existing draft will be removed).
2. THAT the nominal expiry date and related schedules and the dispute resolution procedure be adjusted within the proposed agreement as discussed at the conference before FWA.
3. THAT the above changes be consolidated with the draft agreement as current standing, including the most recent profit share proposal (7.5% per annum).
4. THAT subject to any final drafting changes, the modified package be put to the employees in accordance with the Act for formal approval.
5. THAT the parties discuss and agree a negotiation protocol at the commencement of the next round of negotiations. This protocol should recognise the need to ensure that the negotiators for REX are fully authorised to make commitments and that late changes in positions can be very destructive to the process.
[9] Liberty to apply has been granted generally.
COMMISSIONER
Appearances:
G Filmer with P Tran of Regional Express Holdings Limited.
N Speers with G Bridger, J Shannon, J Werner, A Doering for The Australian Licensed Aircraft Engineers Association.
Conference details:
2012
Sydney (video link to Adelaide)
February 17
July 20
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