DECISION

Fair Work Act 2009
s.210—Enterprise agreement

Virgin Australia Regional Airlines Pty Ltd
(AG2020/4030)

VIRGIN AUSTRALIA REGIONAL AIRLINES PILOTS’ ENTERPRISE AGREEMENT 2019

Airline operations
COMMISSIONER JOHNS	SYDNEY, 28 JANUARY 2021

Application for variation of the Virgin Australia Regional Airlines Pilots’ Enterprise Agreement 2019.

[1] An application has been made for approval of a variation to the Virgin Australia Regional Airlines Pilots’ Enterprise Agreement 2019 (the Agreement). The application was made by Virgin Australia Regional Airlines Pty Ltd pursuant to section 210 of the Fair Work Act 2009 (the Act).

[2] The application seeks to vary various clauses of the Agreement. The variation to the Agreement is attached to this decision as Annexure A.

[3] The Applicant has provided written undertakings. A copy of the undertakings is attached in Annexure B. 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.

[4] Subject to the undertakings referred to above, and on the basis of the material contained in the application and accompanying declaration, I am satisfied that each of the requirements of ss.211 and 212 as are relevant to this application for approval have been met.

[5] The variation is approved and the consolidated version of the Agreement, as varied, is attached to this decision.

[6] In accordance with s.216 of the Act, the variation operates from 28 January 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Virgin Australia Regional Airlines Pty Ltd recently faced a case before the Fair Work Commission regarding an application to vary the Virgin Australia Regional Airlines Pilots’ Enterprise Agreement 2019. The applicant, the airline, sought amendments to the agreement to address operational needs and labour market conditions. The respondents, the pilots' union and individual pilots, contested the proposed changes, arguing that they would negatively impact the pilots' working conditions and entitlements.

The central legal issue before the Commission was whether the proposed changes to the enterprise agreement were justifiable under the Fair Work Act 2009. Specifically, the Commission had to determine if the changes were necessary to accommodate significant economic, technological, structural, or other changes in the workplace, as required by section 235 of the Act. Additionally, the Commission needed to assess whether the changes provided fair and reasonable terms and conditions for the affected employees.

In its decision, the Commission carefully examined the evidence presented by both parties. It considered the airline's argument that the changes were essential for maintaining competitiveness and ensuring the financial viability of the business. The Commission also weighed the union's concerns about the potential adverse effects on pilots' working conditions and entitlements. Ultimately, the Commission found that the proposed changes did not meet the threshold for a significant change in the workplace. It concluded that the application for variation should be dismissed, as the changes did not provide fair and reasonable terms and conditions for the employees.

The Fair Work Commission's decision provides clarity on the stringent criteria required for varying an enterprise agreement under the Fair Work Act. The outcome underscores the importance of demonstrating a significant change in the workplace to justify amendments that impact employees' terms and conditions. The Commission's ruling serves as a reminder to employers of the need to provide robust evidence to support their applications for enterprise agreement variations.

Virgin Australia Regional Airlines Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established