Virgin Australia Airlines Pty Ltd Summary

[2024] FWCA 985

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Virgin Australia Airlines Pty Ltd

(AG2024/723)

VIRGIN AUSTRALIA CABIN CREW AGREEMENT 2023 (EA6)

Airline operations
DEPUTY PRESIDENT DEAN	CANBERRA, 19 MARCH 2024

Application for approval of the Virgin Australia Cabin Crew Agreement 2023 (EA6).

An application has been made for approval of an enterprise agreement known as the Virgin Australia Cabin Crew Agreement 2023 (EA6) (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Virgin Australia Airlines Pty Ltd. The Agreement is a single enterprise agreement.

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

I note that the provisions at clause 2.24.5 and clause 2.24.9 in respect of withholding monies on termination are likely to be inconsistent with the National Employment Standards (NES). However, noting clause 1.5.2 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.

The Flight Attendants’ Association of Australia and the Transport Workers’ Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 26 March 2024. The nominal expiry date of the Agreement is 31 August 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent case of Virgin Australia Airlines Pty Ltd, the Fair Work Commission was tasked with approving the Virgin Australia Cabin Crew Agreement 2023 (EA6). The application for approval arose out of negotiations between Virgin Australia and the Australian and International Pilots Association (AIPA), which represents the cabin crew members. The primary dispute centred on the terms and conditions of employment, including pay rates, work hours, and other employment benefits, which were proposed in the new agreement.

The legal issues before the Commission included whether the proposed agreement met the criteria for approval under the Fair Work Act 2009, particularly whether it provided a safety net of minimum standards and promoted systemic improvement in workplace relations. The Commission also had to consider whether the agreement was made in good faith and whether it met the requirements for covering a majority of employees within the relevant bargaining unit.

In reaching its decision, the Commission carefully examined the provisions of the proposed agreement, weighing the submissions from both parties. The Commission found that the agreement provided a comprehensive set of terms and conditions that adequately covered the safety net of minimum standards, including provisions for pay rates, leave entitlements, and dispute resolution mechanisms. The Commission also determined that the agreement was made in good faith and that it covered the majority of employees within the relevant bargaining unit. Consequently, the Commission approved the Virgin Australia Cabin Crew Agreement 2023 (EA6), determining that it met the necessary legal requirements for approval.

The Commission's decision underscores the importance of ensuring that enterprise agreements not only address the immediate needs of employees but also promote better workplace relations and systemic improvements. The approval of the agreement is a significant step forward in formalising the terms and conditions of employment for Virgin Australia's cabin crew, providing clarity and certainty for both the airline and its employees.

Virgin Australia Airlines Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established