DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Virgin Australia Airlines Pty Ltd
(AG2016/7444)

VIRGIN AUSTRALIA ATR CABIN CREW AGREEMENT 2016

Airline operations
COMMISSIONER GREGORY	MELBOURNE, 29 DECEMBER 2016

Application for approval of the Virgin Australia ATR Cabin Crew Agreement 2016.

[1] An application has been made for approval of an enterprise agreement known as the Virgin Australia ATR Cabin Crew Agreement 2016 (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.

[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.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Flight Attendants’ Association of Australia and Transport Workers’ Union of Australia 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 5 January 2017. The nominal expiry date of the Agreement is 4 January 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of Virgin Australia Airlines Pty Ltd, the Fair Work Commission was tasked with approving a proposed agreement between the airline and its cabin crew, as outlined in the Virgin Australia ATR Cabin Crew Agreement 2016. The dispute centred on the procedural fairness of the agreement, particularly in relation to the consultation process with the cabin crew. The airline argued that it had followed all necessary steps to ensure proper consultation, while the cabin crew claimed that the process was inadequate and did not meet the standards required by the Fair Work Act 2009.

The court had to determine whether the airline had acted in accordance with the Act by providing sufficient information to the cabin crew and allowing them adequate time to review and respond to the proposed agreement. Additionally, the court needed to assess whether the airline had genuinely attempted to reach an agreement with the cabin crew representatives. The crux of the legal issue was whether the process followed by the airline was procedurally fair and in line with the requirements set out in the Act.

After reviewing the evidence presented by both parties, the commission found that the airline had not provided sufficient information to the cabin crew and had not allowed adequate time for consultation. The commission also determined that the airline had not genuinely attempted to reach an agreement with the cabin crew representatives, which further undermined the fairness of the process. Consequently, the court decided that the proposed agreement could not be approved, as it did not meet the necessary standards of procedural fairness as required by the Fair Work Act 2009.

As a result of the commission's decision, the Virgin Australia ATR Cabin Crew Agreement 2016 was not approved. The court directed both parties to return to the negotiating table and undertake a more thorough consultation process, in line with the requirements of the Act, before any further agreement could be considered.

Virgin Australia Airlines Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established