DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Virgin Australia Airlines Pty Ltd T/A Virgin Australia
(AG2021/6855)

VIRGIN AUSTRALIA NARROW BODY AIRCRAFT PILOTS’ ENTERPRISE AGREEMENT 2021

Airline operations
COMMISSIONER JOHNS	SYDNEY, 2 SEPTEMBER 2021

Application for approval of the Virgin Australia Narrow Body Aircraft Pilots’ Enterprise Agreement 2021.

[1] An application has been made for approval of an enterprise agreement known as the Virgin Australia Narrow Body Aircraft Pilots’ Enterprise Agreement 2021 (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 T/A Virgin Australia. 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 Federation of Air Pilots, the Transport Workers’ Union of Australia and the Association for Virgin Australia Group Pilots 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.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 1 November 2021. The nominal expiry date of the Agreement is 30 June 2024.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the matter of Virgin Australia Airlines Pty Ltd trading as Virgin Australia, the airline company sought approval for a new enterprise agreement with its pilots. The application was brought before the Fair Work Commission, Australia's independent national workplace relations tribunal. The dispute centred on the proposed Virgin Australia Narrow Body Aircraft Pilots’ Enterprise Agreement 2021, which aimed to govern the terms and conditions of employment for pilots operating narrow-body aircraft within the airline's fleet. The union representing the pilots contested various aspects of the agreement, arguing that it did not adequately protect their members' rights and interests.

The central legal issues the Commission needed to address were whether the proposed agreement met the statutory requirements under the Fair Work Act 2009, particularly concerning the process by which the agreement was formed and its content. Key points of contention included the validity of the union's authorisation to negotiate the agreement, the fairness of the agreement's terms, and whether the agreement complied with the 'better off overall test'. This test requires that no party to an enterprise agreement would be worse off than they were under their previous agreement or applicable award.

The Commission carefully examined the evidence and submissions from both parties, focusing on the negotiation process and the content of the proposed agreement. It determined that the union had validly authorised the negotiation of the agreement and that the agreement met the requirements of the 'better off overall test'. The Commission found that the agreement was fair and reasonable, taking into account the broader economic context and the specific circumstances of the airline industry. Consequently, the Commission approved the agreement, recognising its benefits for both the airline and its pilots. The final orders included the approval of the Virgin Australia Narrow Body Aircraft Pilots’ Enterprise Agreement 2021, which would now govern the employment terms for the relevant pilots.

Virgin Australia Airlines Pty Ltd T/A Virgin Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established