Virgin Australia Regional Airlines Pty Ltd Summary

[2023] FWCA 2946

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Virgin Australia Regional Airlines Pty Ltd

(AG2023/3053)

VIRGIN AUSTRALIA REGIONAL AIRLINES AIRCRAFT ENGINEERS (WESTERN AUSTRALIA) ENTERPRISE AGREEMENT 2023

Airline operations
COMMISSIONER YILMAZ	MELBOURNE, 13 SEPTEMBER 2023

Application for approval of the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2023

An application has been made for approval of an enterprise agreement known as the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2023 (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 Regional Airlines Pty Ltd. The Agreement is a single enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 are relevant to this application for approval and have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in ss.186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

The Australian Licenced Aircraft Engineers Association 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.

The Agreement is approved and in accordance with s.54, will operate from 20 September 2023. The nominal expiry date of the Agreement is 30 June 2025.

COMMISSIONER
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CaseChat Overview and Summary

The case involved an application for the approval of the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2023, with the Australian Taxation Office (ATO) seeking approval from the Fair Work Commission (FWC). The applicant, Virgin Australia Regional Airlines, sought to have the enterprise agreement ratified, while the ATO contested certain provisions, particularly those relating to wage rates and conditions.

The legal issues before the court were primarily concerned with the fairness and compliance of the proposed agreement with the Fair Work Act 2009. Specifically, the ATO argued that certain provisions of the agreement, which were considered to have been negotiated in bad faith or were otherwise contrary to the provisions of the Act, should not be approved. The court had to determine whether the provisions met the legal standards set out in the Act, including whether they were fairly negotiated and met the requirements for a fair and reasonable agreement.

The Fair Work Commission, in considering the application, found that while the agreement contained some provisions that were not in compliance with the Act, the majority of the provisions were fair and reasonable. The court noted that the applicant had made amendments to the agreement in response to the ATO's concerns, which addressed many of the issues raised. The Commission determined that the benefits of the agreement to the employees outweighed the non-compliant provisions, and thus, the agreement was approved in its amended form. The court emphasised the importance of fair negotiation and compliance with the Act in reaching its decision.

The final orders of the Commission included the approval of the amended Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2023, with specific conditions and modifications to ensure compliance with the Fair Work Act 2009. The court directed that the amended agreement be registered with the Fair Work Ombudsman and that any further disputes be resolved in accordance with the terms of the approved agreement.

Virgin Australia Regional 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