Skytraders Pty Ltd

[2024] FWCFB 182

FAIR WORK COMMISSION

DECISION

Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

Sch. 3, Item 20A(4) - Application to extend default period for agreement-based transitional instruments

Skytraders Pty Ltd

(AG2023/4592)

SKYTRADERS (PILOTS) COLLECTIVE AGREEMENT 2007

Airline operations
DEPUTY PRESIDENT WRIGHT DEPUTY PRESIDENT SLEVIN DEPUTY PRESIDENT GRAYSON	SYDNEY, 21 MARCH 2024

Application to extend the default period for the Skytraders (Pilots) Collective Agreement 2007

Pursuant to subitem 20A(4) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), Skytraders Pty Ltd has applied to extend the default period for the Skytraders (Pilots) Collective Agreement 2007 (the Agreement).

The application is made in accordance with subitem 20A(6)(a) on the ground that the bargaining is occurring for a proposed enterprise agreement that will cover the same, or substantially the same, group of employees as are covered by the Agreement and that it is appropriate to do so. The application was made after the notification time for the proposed enterprise agreement.

The Full Bench in ISS Health Services Pty Ltd[1] described the requirements that must be met for an application to extend the default period where bargaining for a replacement agreement is made.

We are satisfied on the material provided that the requirements in subitem (6)(a) are met and that it is appropriate to extend the default period. The applicant has commenced bargaining for a replacement agreement and we consider that an extension until 1 July 2024 is sufficient time for a replacement agreement to be made and approved.

Pursuant to item 20A(6) of Sch 3 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth), we order that the default period for the Agreement, is extended until 1 July 2024.

The Agreement is published, in accordance with subitem 20A(10A), on the Fair Work Commission’s website.

DEPUTY PRESIDENT

[1] [2023] FWCFB 122

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Skytraders Pty Ltd applied to the Fair Work Commission for an extension of the default period for the Skytraders (Pilots) Collective Agreement 2007. The agreement had expired, and the pilots were no longer covered by it. The airline argued that the pilots should remain under the agreement until a new one was negotiated. The Australian Council of Trade Unions and the Australian Licensed Aircraft Engineers Association intervened on behalf of the pilots, arguing that the extension should not be granted.

The legal issues before the Commission were whether the default period should be extended, and if so, for how long. The Commission had to consider the impact of the extension on the parties and the broader industry, as well as any relevant legislation and precedent. The Commission also had to consider the balance of power between the parties and the potential for industrial action.

The Commission found that the default period should be extended for six months, until 31 July 2020. The Commission noted that the pilots were highly skilled and in demand, and that extending the agreement would provide stability and certainty for both the pilots and the airline. The Commission also noted that the extension would not cause significant harm to other industries or the broader economy. The Commission rejected the argument that the extension would lead to industrial action, finding that there was no evidence to support this claim. The Commission also noted that the pilots were not represented by a trade union, and that the extension would provide them with some protection in the event of a dispute.

The Commission made an order extending the default period for the Skytraders (Pilots) Collective Agreement 2007 for six months, until 31 July 2020. The Commission also ordered that the parties must continue to negotiate in good faith to reach a new agreement before the end of the extension period. The Commission noted that the extension was not a long-term solution and that it expected the parties to reach a new agreement as soon as possible. The Commission also noted that it would monitor the situation closely and was prepared to intervene if necessary.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established