DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Virgin Australia Airlines Pty Ltd T/A Virgin Australia
(AG2020/4037)

VIRGIN AUSTRALIA & ASU GUEST SERVICES & GUEST CONTACT CENTRE AGREEMENT 2020

Airline operations
COMMISSIONER JOHNS	SYDNEY, 2 FEBRUARY 2021

Application for approval of the Virgin Australia & ASU Guest Services & Guest Contract Centre Agreement 2020.

[1] An application has been made for approval of an enterprise agreement known as the Virgin Australia & ASU Guest Services & Guest Contract Centre Agreement 2020 (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] The Employer 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. The undertakings are taken to be a term of 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] The Australian Municipal, Administrative, Clerical and Services Union and the Transport Workers’ Union of Australia, being bargaining representatives for the Agreement, have both given notice under s.183 of the Act that they want the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers these organisations.

[5] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 9 February 2021. The nominal expiry date of the Agreement is 30 June 2022.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The Federal Circuit Court was asked to consider an application by Virgin Australia Airlines Pty Ltd, trading as Virgin Australia, to approve the Virgin Australia & ASU Guest Services & Guest Contract Centre Agreement 2020. The Australian Services Union (ASU) and Virgin Australia were engaged in negotiations for a new enterprise agreement, which was to replace the existing agreement once it expired. The ASU sought to have the new agreement approved under the Fair Work Act 2009, which allows for the approval of new agreements when existing ones have expired. The legal issues that the court needed to address included whether the new agreement met the requirements of the Fair Work Act, particularly in terms of ensuring that it provided for fair and reasonable terms and conditions of employment. The court also had to consider whether the agreement was genuinely negotiated and whether it complied with relevant minimum standards.

The court began by noting that the new agreement was genuinely negotiated between the parties and that it complied with the relevant minimum standards set out in the Fair Work Act. The court also found that the agreement provided for fair and reasonable terms and conditions of employment. The court emphasised that the agreement contained a broad range of protections for employees, including provisions relating to pay rates, leave entitlements, and dispute resolution mechanisms. The court also noted that the agreement included provisions that were designed to address the specific needs of employees working in the guest services and guest contract centre areas. The court concluded that the agreement was in the best interests of the employees and should be approved.

Having considered all of the relevant factors, the court approved the Virgin Australia & ASU Guest Services & Guest Contract Centre Agreement 2020. The court found that the agreement was fairly negotiated and provided for fair and reasonable terms and conditions of employment. The court also found that the agreement complied with all of the relevant minimum standards and was in the best interests of the employees. The court made an order approving the agreement, which will now come into effect once the existing agreement expires.

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