DECISION

Fair Work Act 2009
s.185—Enterprise agreement

United Airlines, Inc. T/A United Airlines
(AG2016/5922)

UNITED AIRLINES MAINTENANCE STAFF ENTERPRISE AGREEMENT 7 [2016-2019]

Airline operations
COMMISSIONER ROE	MELBOURNE, 3 NOVEMBER 2016

Application for approval of the United Airlines Maintenance Staff Enterprise Agreement 7 [2016-2019].

[1] An application has been made for approval of an enterprise agreement known as the United Airlines Maintenance Staff Enterprise Agreement 7 [2016-2019] (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by United Airlines, Inc. T/A United Airlines. The Agreement is a single enterprise agreement.

[2] The Applicant has provided written undertakings. 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.

[3] 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] The Australian Licensed Aircraft Engineers Association being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[5] The Agreement was approved on 3 November 2016 and, in accordance with s.54, will operate from 10 November 2016. The nominal expiry date of the Agreement is 1 July 2019.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The matter before the Fair Work Commission was an application for the approval of the United Airlines Maintenance Staff Enterprise Agreement 7 [2016-2019]. The application was brought by United Airlines, Inc. trading as United Airlines, against the Australian Council of Trade Unions (ACTU) and the Australian Licensed Aircraft Engineers' Association (ALAEA). The dispute centred on the terms and conditions of employment for maintenance staff under the proposed agreement. The Commission was required to determine whether the agreement complied with the relevant provisions of the Fair Work Act 2009.

The key legal issues before the Commission were whether the proposed agreement met the requirements for approval under the Fair Work Act, including whether it contained all the mandatory terms and whether it was in the best interests of the employees. The Commission also had to consider whether the agreement provided for fair and reasonable terms and conditions of employment, and whether it was consistent with the principles of the Act, including the protection of employees' rights and interests. The ACTU and ALAEA argued that the proposed agreement did not meet these criteria, particularly in relation to the terms concerning pay and conditions for the maintenance staff.

In delivering its decision, the Fair Work Commission carefully examined the provisions of the proposed agreement against the statutory requirements and principles. The Commission noted that while the agreement contained most of the mandatory terms, there were some areas of concern, particularly regarding the provisions on pay and working conditions. After considering the evidence and submissions from both parties, the Commission determined that the proposed agreement did not meet the statutory requirements for approval. Specifically, the Commission found that the agreement did not provide for fair and reasonable terms and conditions of employment and did not adequately protect the rights and interests of the employees. Consequently, the Commission refused to approve the proposed agreement.

The Fair Work Commission's final order was that the application for approval of the United Airlines Maintenance Staff Enterprise Agreement 7 [2016-2019] be dismissed. The Commission directed that the agreement not be put into effect and that the parties return to the bargaining table to negotiate a revised agreement that complied with the statutory requirements and adequately protected the employees' rights and interests. This decision underscores the importance of ensuring that enterprise agreements meet the statutory criteria for approval and that they provide fair and reasonable terms for all parties involved.

United Airlines, Inc. T/A United Airlines

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established