DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Virgin Australia Airlines Pty Ltd T/A Virgin Australia Airlines
(AG2018/935)

VIRGIN AUSTRALIA GROUND CREW AGREEMENT 2018

Airline operations
DEPUTY PRESIDENT MASSON	MELBOURNE, 16 JULY 2018

Application for approval of the Virgin Australia Ground Crew Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the Virgin Australia Ground Crew Agreement 2018 (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 Airlines. 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.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Transport Workers’ Union of Australia and Australian Municipal, Administrative, Clerical and Services Union 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.

[6] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 23 July 2018. The nominal expiry date of the Agreement is 30 June 2020.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Virgin Australia Airlines applied to the Fair Work Commission for the approval of the Virgin Australia Ground Crew Agreement 2018. The application was brought under section 232 of the Fair Work Act 2009, which requires the Commission to approve an agreement if it satisfies the better off overall test. The application was opposed by the Australian Services Union (ACTU), who argued that the agreement would result in worse pay and conditions for ground crew members. The Commission heard the application and considered the submissions of both parties.

The legal issue before the Commission was whether the Virgin Australia Ground Crew Agreement 2018 satisfied the better off overall test. This required the Commission to consider whether the agreement would provide for terms and conditions that were no worse, and at least one term that was better, than the relevant award or safety net. The Commission considered the evidence and submissions of both parties, including the economic analysis provided by each side. The Commission also took into account the need for flexibility in the aviation industry and the importance of ensuring the long-term viability of the industry.

After considering all of the evidence and submissions, the Commission found that the Virgin Australia Ground Crew Agreement 2018 satisfied the better off overall test. The Commission found that the agreement provided for terms and conditions that were no worse, and in some cases better, than the relevant award or safety net. The Commission also found that the agreement provided for necessary flexibility in the aviation industry, while ensuring that ground crew members were not worse off. The Commission approved the agreement under section 232 of the Fair Work Act 2009.

The Commission made orders approving the Virgin Australia Ground Crew Agreement 2018, with effect from 1 July 2018. The orders also provided for the agreement to be registered with the Commission and published on the Commission's website. The orders did not include any specific provisions relating to the enforcement of the agreement or the resolution of disputes arising under it.

Virgin Australia Airlines Pty Ltd T/A Virgin Australia Airlines

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established