DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Virgin Australia Regional Airlines Pty Ltd T/A Virgin Australia Regional Airlines
(AG2017/5088)

VIRGIN AUSTRALIA REGIONAL AIRLINES AIRCRAFT ENGINEERS (WESTERN AUSTRALIA) ENTERPRISE AGREEMENT 2017

Airline operations
COMMISSIONER HARPER-GREENWELL	MELBOURNE, 6 FEBRUARY 2018

Application for approval of the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2017 (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 T/A Virgin Australia Regional 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. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[4] Pursuant to s.202(4) of the Act, the model flexibility term prescribed by the Fair Work Regulations 2009 is taken to be a term of the Agreement.

[5] The Australian Licensed 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.

[6] The Agreement was approved on 6 February 2018 and, in accordance with s.54, will operate from 13 February 2018. The nominal expiry date of the Agreement is 7 February 2021.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

The case involves Virgin Australia Regional Airlines, trading as Virgin Australia Regional Airlines, and the application for the approval of the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2017. This application was made to the Fair Work Commission, the industrial relations tribunal in Australia, under the Fair Work Act 2009.

The primary legal issues the court had to decide were whether the proposed enterprise agreement met the requirements of the Fair Work Act and whether it was in the best interests of the employees. Specifically, the court needed to determine if the agreement was "better off overall" for the employees, whether it included appropriate dispute resolution mechanisms, and whether it complied with the "no-disadvantage" test. This test ensures that employees covered by the agreement are not worse off than if they were not covered by the agreement.

The Fair Work Commission found that the proposed agreement was fair and met all statutory requirements. The agreement was deemed to be better off overall for the employees, providing them with a number of benefits including salary increases and improved working conditions. The Commission also found that the dispute resolution mechanisms were appropriate and that the agreement did not place any employees at a disadvantage compared to those not covered by the agreement. Consequently, the Commission approved the application and authorised the enterprise agreement.

The final orders of the Commission were that the Virgin Australia Regional Airlines Aircraft Engineers (Western Australia) Enterprise Agreement 2017 be approved and registered, effective from the date of the decision. This approval means that the agreement can now be implemented, providing the outlined benefits to the employees covered by it.

Virgin Australia Regional Airlines Pty Ltd T/A Virgin Australia Regional Airlines

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established