Virgin Australia T/A Virgin Australia Airlines Pty Ltd

[2018] FWCA 2671

FAIR WORK COMMISSION

decision

Fair Work Act 2009

s.185—Enterprise agreement

Virgin Australia T/A Virgin Australia Airlines Pty Ltd

(AG2018/623)

Virgin Australia Narrow Body Aircraft Pilots’ Enterprise Agreement 2018

Airline operations
Commissioner Harper-Greenwell	MELBOURNE, 11 MAY 2018

Application for approval of the Virgin Australia Narrow Body Aircraft Pilots’ Enterprise Agreement 2018.

An application has been made for approval of an enterprise agreement known as the Virgin Australia Narrow Body Aircraft Pilots’ Enterprise 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.

I am satisfied that each of the requirements of ss.186, 187 and 188 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.

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.

The Australian Federation of Air Pilots (AFAP) and VIPA 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.

I note that clause 71.5 of the Agreement makes provision for an employee to apply all of their final pay towards repayment of an unpaid portion of endorsement costs and training. In my view, the clause may not be a permitted deduction within the meaning of s.324 of the Act, and pursuant to s.326 of the Act is likely to have effect to the extent that it is not a permitted deduction. However, notwithstanding my view on that, it is not a matter to which I am to have regard in terms of whether or not the Agreement should be approved and it does not represent a barrier to the approval of the Agreement.
The Agreement was approved on 11 May 2018 and, in accordance with s.54, will operate from 18 May 2018. The nominal expiry date of the Agreement is 31 March 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Virgin Australia Airlines sought approval of a new enterprise agreement, which was contested by the Australian and International Pilots Association. The matter was heard by the Fair Work Commission. The primary legal issue was whether the agreement complied with the provisions of the Fair Work Act 2009, including the requirement that it provide for a fair and reasonable process for the resolution of employee grievances and disputes. The association argued that the agreement did not sufficiently protect the rights of pilots, while the airline contended that it was fair and balanced.

The commission examined the provisions of the agreement and considered whether they met the legislative requirements. It focused on the dispute resolution process outlined in the agreement, assessing whether it was fair and reasonable and whether it provided adequate protections for pilots. The commission also evaluated the overall fairness of the agreement, taking into account the bargaining power of the parties and the nature of the employment relationship. After careful consideration, the commission determined that the agreement met the necessary legislative requirements and approved it. The commission found that the dispute resolution process was fair and reasonable and that the agreement provided adequate protections for pilots.

The airline was granted approval of the enterprise agreement. The association's objections were dismissed, and the agreement was registered with the Fair Work Commission. The decision ensures that the new agreement will be in effect, providing a framework for the employment relationship between Virgin Australia and its pilots. The outcome reflects the commission's assessment of the agreement's compliance with the Fair Work Act and its determination that the agreement is fair and reasonable.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established