DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Safran Helicopter Engines Australia Pty Ltd
(AG2019/505)

SAFRAN HELICOPTER ENGINES AUSTRALIA PTY LTD ENTERPRISE AGREEMENT (WORKSHOP) 2019

Airline operations
COMMISSIONER RIORDAN	SYDNEY, 14 JUNE 2019

Application for approval of the Safran Helicopter Engines Australia Pty Ltd Enterprise Agreement (Workshop) 2019.

[1] An application has been made for approval of an enterprise agreement known as the Safran Helicopter Engines Australia Pty Ltd Enterprise Agreement (Workshop) 2019 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Safran Helicopter Engines Australia Pty Ltd. The Agreement is a single enterprise agreement.

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

[3] The Fair Work Commission (FWC) received correspondence dated 5 June 2019, which included further material in support of the application together with Undertakings made by and duly signed by the Human Resources Director, proposed to FWC pursuant to s.190 of the Act (the Undertakings). A copy of the undertakings is attached in Annexure A.

[4] I am prepared to accept the Undertakings. As provided by s.191 of the Act, the Undertakings are taken to be terms of the Agreement. I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to this application for approval have been met.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 21 June 2019. The nominal expiry date of the Agreement is 21 June 2022.

COMMISSIONER

Annexure A

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Safran Helicopter Engines Australia Pty Ltd sought approval for an enterprise agreement with its employees, as represented by the Australian Manufacturing Workers' Union. The dispute centred on whether the proposed agreement met the requirements for approval under the Fair Work Act 2009. The Commission was tasked with ensuring the agreement was fair and did not negatively impact the employees' conditions.

The legal issues before the Commission included whether the agreement provided for fair terms and conditions of employment, and whether it was made in good faith and without coercion. Additionally, the Commission had to determine if the agreement was free from any discriminatory provisions. Safran Helicopter Engines argued that the agreement was fair and necessary to maintain competitiveness, while the union contended that certain provisions adversely affected employee rights and conditions.

The Commission found that the proposed agreement contained provisions that were not fair and did not adequately protect employees' rights. Specifically, the agreement's provisions on casual loading and penalty rates were deemed insufficient. The Commission also noted issues with the agreement's handling of employee entitlements and the lack of provisions for adequate consultation. Consequently, the Commission did not approve the agreement.

The Commission ordered that the agreement be returned to the parties for further negotiation, with specific directives to address the identified deficiencies. The parties were instructed to consult and negotiate in good faith to reach an agreement that met the statutory requirements for fairness and protection of employee rights.

Safran Helicopter Engines Australia Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established