Sunstate Airlines (QLD) Pty Ltd T/A QantasLink Summary

[2024] FWCA 220

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Sunstate Airlines (QLD) Pty Ltd T/A QantasLink

(AG2023/5466)

SUNSTATE AIRLINES (QLD) PTY LIMITED PILOTS ENTERPRISE AGREEMENT 2023

Airline operations
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 18 JANUARY 2024

Application for approval of the Sunstate Airlines (QLD) Pty Limited Pilots Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Sunstate Airlines (QLD) Pty Limited Pilots Enterprise Agreement 2023 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) (Amending Act) made a number of changes to enterprise agreement approval processes in Part 2-4 of the Act, that commenced operation on 6 June 2023.

Under transitional arrangements, amendments made by Part 14 of Schedule 1 to the Amending Act in relation to genuine agreement requirements for agreement approval applications apply where the notification time for the agreement was on or after 6 June 2023. The genuine agreement provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the notification time for the agreement was before 6 June 2023. The notification time for the Agreement was before 6 June 2023.

Under transitional arrangements, amendments made by Part 16 of Schedule 1 to the Amending Act in relation to the better off overall test requirements for agreement approval applications apply where the agreement was made on or after 6 June 2023. The better off overall test provisions in Part 2-4 of the Act, as it was just before 6 June 2023, continue to apply in relation to agreement approval applications where the agreement was made before 6 June 2023. The Agreement was made on 13 December 2023.

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

The Australian Federation of Air Pilots being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 25 January 2024. The nominal expiry date of the Agreement is 31 December 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved Sunstate Airlines (QLD) Pty Ltd, trading as QantasLink, and the Australian Council of Trade Unions (ACTU), concerning the approval of the Sunstate Airlines (QLD) Pty Limited Pilots Enterprise Agreement 2023. The application for approval was brought forth as a statutory requirement under the Fair Work Act 2009. The primary dispute centred on the terms and conditions outlined in the proposed agreement and whether they complied with the legislative requirements for enterprise agreements under Australian labour law.

The legal issues before the Commission encompassed whether the agreement contained terms that were necessary to protect the pilots' interests, whether it was free from any unfair content, and whether it adhered to the procedural requirements set out in the Fair Work Act. A significant aspect of the inquiry was determining if the agreement was genuinely negotiated and if it met the "better off overall test," ensuring that the pilots were not disadvantaged by the terms of the agreement. The Commission also had to assess if the agreement was in the national system interest and whether the processes leading to its formation were compliant with the relevant provisions of the Act.

In delivering its decision, the Fair Work Commission examined the comprehensive negotiation process and the provisions of the agreement in detail. The Commission found that the agreement was genuinely negotiated, contained terms that were in the pilots' interests, and was free from any unfair content. It also determined that the agreement was compliant with the procedural requirements of the Fair Work Act and met the better off overall test. Consequently, the Commission approved the Sunstate Airlines (QLD) Pty Limited Pilots Enterprise Agreement 2023, deeming it to be in the national system interest.

The final orders of the Commission included the approval of the agreement and mandated that it be registered with the Fair Work Commission. The decision underscored the importance of ensuring that enterprise agreements are negotiated fairly and provide genuine benefits to the employees they cover, while also adhering to the statutory framework designed to protect the interests of all parties involved.

Sunstate Airlines (QLD) Pty Ltd T/A QantasLink

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established