United Airlines, Inc.

[2025] FWCA 1191

[2025] FWCA 1191

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

United Airlines, Inc.

(AG2025/223)

UNITED AIRLINES, INC. AUSTRALIAN EMPLOYMENT ENTERPRISE AGREEMENT 2024 – 2028

Airline operations
COMMISSIONER ALLISON	MELBOURNE, 8 APRIL 2025

Application for approval of the United Airlines, Inc. Australia Employment Enterprise Agreement 2024-2028

1. United Airlines, Inc. (the Employer) has made an application, pursuant to s.185 of the Fair Work Act 2009 (the Act), for approval of a single enterprise agreement known as the United Airlines, Inc. Australia Employment Enterprise Agreement 2024-2028 (the Agreement).

Better Off Overall Test (BOOT) Issues

1. There were a number of BOOT concerns when the Agreement was compared to the Airline Operations – Ground Staff Award 2020 (the Award). The rates of pay of multiple classifications in the Agreement as filed were below, or close to, Award rates. In addition the Agreement included a number of terms that were less beneficial than the Award. The Employer provided undertakings to address the BOOT concerns, as set out below.

1. The Employer provided an undertaking increasing the rates of pay of employees to resolve the below concerns. (Undertaking 1)

• Below Award rates for multiple classifications.

• Clause 35(m) of the Agreement provides a narrower range of afternoon shift hours than Clause 17.3 of the Award.

• Clause 35(m) of the Agreement provides a lesser non-rotating night shift penalty than Clause 17.4 of the Award.

• Clause 36 of the Agreement provides lesser penalty rates for work performed on Sunday than Clause 25.2 of the Award.

• Clause 39 of the Agreement does not provide that if an employee works for more than 5 hours without a meal break, they will be paid at overtime rates until a meal break is taken, unlike under Clause 16 of the Award.

• Clause 37 of the Agreement provides that Time Off In Lieu (TOIL) not taken within 28 days of accrual will be added an employee’s annual leave as ordinary time only, Clause 24.6 of the Award, which pays out TOIL at overtime rates.

• Clause 11 of the Agreement provides a lesser higher duties allowance than that guaranteed by Clause 18.7 of the Award.

• The Agreement provides various reduced and omitted allowances which would be covered by clauses 16 and 20 of the Award.

1. Clause 20 of the Agreement, relating to casual employment, did not provide for casual loading, minimum engagement, or overtime for casual employees, which would otherwise be provided by clause 11 of the Award. The Employer provided two undertakings including these entitlements in line with the Award to address this concern. (Undertakings 2 & 3).

1. The Agreement is silent regarding part-time safeguards on hours of agreed work, which would be provided at Clause 10 of the Award. The Employer provided an undertaking consistent with clause 10.2 of the Award to address this issue. (Undertaking 4).

1. The Agreement is silent on meal and crib breaks for continuous shiftworkers, which are provided by clauses 16.2(a) and 16.3 of the Award. The Employer provided an undertaking that it will not require any employees under the Agreement to carry out continuous shiftwork as defined in Clause 14.3 of the Award. (Undertaking 5).

1. The Agreement is silent on travel allowances, which are provided for at Clause 20.3 of the Award. The Employer provided an undertaking that it will provide employees a travelling and board allowance in accordance with Clause 20.3(b)(i) of the Award to resolve this concern. (Undertaking 6).

1. The Agreement is silent on shift penalties for non-continuous shifts, while Clause 17.5 of the Award provides penalty rates of 150% for non-continuous shifts. The Employer provided an undertaking that it will conduct regular audits to ensure any employees required to perform non-continuous shift work are better off under the Agreement. (Undertaking 7).

1. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement. The undertakings are taken to be a term of the agreement.

Other Matters

1. The agreement title on the Notice of Employee Representational Rights (NERR) that was issued to the employees was the “United Airlines, Inc. Australian Employment Enterprise Agreement 2023-2025” which does not match the title of the Agreement to be approved. I am satisfied that this was a minor procedural or technical error and that the employees were not likely to have been disadvantaged by it. Accordingly, I exercise the discretion conferred by s.188(2) of the Act (as in force at the notification time) to disregard this error.

1. The following provisions may be inconsistent with the National Employment Standards (NES):

• Clause 24.5.4 imposes restrictions on the taking of carer’s leave relating to whether the employee seeking to take leave is responsible for the care and support of a person concerned, or if multiple employees seek to take leave to care for the same person. These restrictions may be inconsistent with s.97 of the Act.

• Clause 40, relating to substitution of public holidays, does not allow for substitution of public holidays between the employer and a single employee, inconsistent with s.115 of the Act.

1. However, noting clause 8(c) of the Agreement, I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

1. Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

1. The Agreement is approved and, in accordance with s.54 of the Act, will operate from 15 April 2025. The nominal expiry date of the Agreement is 12 March 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

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Annexure A