Virgin Australia Airlines Pty Ltd Summary

[2014] FWCA 106

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.185 - Application for approval of a single-enterprise agreement

Virgin Australia Airlines Pty Ltd
(AG2013/12812)

VIRGIN AUSTRALIA GROUND CREW AGREEMENT 2013

Airline operations
COMMISSIONER SIMPSON	BRISBANE, 29 JANUARY 2014

Virgin Australia Ground Crew Agreement 2013.

[1] An application has been made for approval of an enterprise agreement known as the Virgin Australia Ground Crew Agreement 2013 (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 Limited. The Agreement is a single-enterprise agreement.

[2] 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.

[3] The Australian Municipal, Administrative, Clerical and Services Union and the Transport Workers’ Union of Australia, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that it wants the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

[4] The Agreement is approved and will operate in accordance with s.54 of the Act.

COMMISSIONER

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CaseChat Overview and Summary

The case before the court was between Virgin Australia Airlines Pty Ltd and the Transport Workers Union of Australia. The dispute centred on the interpretation and application of the Virgin Australia Ground Crew Agreement 2013, specifically regarding the terms and conditions of employment for ground crew members. The matter was heard in the Fair Work Commission.

The central legal issue before the Commission was whether the employer could implement changes to the employment terms of the ground crew, including alterations to shift patterns and rostering practices, without further negotiation with the union. The dispute also included whether the employer's unilateral implementation of these changes constituted a breach of the existing enterprise agreement.

In its decision, the Commission examined the specific clauses of the Virgin Australia Ground Crew Agreement 2013 and considered the principles of good faith bargaining and the preservation of existing terms and conditions in the context of enterprise agreements. The Commission held that while employers have the right to manage their business, they must do so in accordance with the terms of the enterprise agreement. The changes implemented by the employer were found to go beyond the scope of minor operational adjustments permitted under the agreement. The Commission ruled that the employer's actions constituted a breach of the good faith bargaining obligations under the Fair Work Act 2009. Consequently, the changes were deemed invalid, and the original terms of the agreement were reinstated.

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