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| Wage deal that union said 'ripped off' airport workers rejected by Fair Work | Wage deal that union said 'ripped off' airport workers rejected by Fair Work |
| (5 months later) | |
| Commission says proposed deal from aircraft service provider Aerocare could not prove it left its employees better off | |
| Naaman Zhou | |
| Thu 31 Aug 2017 10.35 BST | |
| Last modified on Thu 31 Aug 2017 10.36 BST | |
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| The Fair Work Commission has thrown out a proposed wage deal from Aerocare, an Australian aircraft service provider, because it could not prove it left its employees better off overall. | The Fair Work Commission has thrown out a proposed wage deal from Aerocare, an Australian aircraft service provider, because it could not prove it left its employees better off overall. |
| Commissioner Nicholas Wilson drew particular attention to Aerocare’s failure to provide a typical employee roster, after the company claimed it instead used a “constantly evolving set of hours determined by algorithms with no human intervention”. | Commissioner Nicholas Wilson drew particular attention to Aerocare’s failure to provide a typical employee roster, after the company claimed it instead used a “constantly evolving set of hours determined by algorithms with no human intervention”. |
| Aerocare had previously come under fire for the practice of split shifts – where workers are offered two four-hour shifts in a day, separated by a few hours. In March, the ABC’s 7.30 aired disputed allegations that some workers were forced to sleep on the floor of airports due to the practice. The ABC subsequently published a clarification to the story and the matter is now before the Australian Communications and Media Authority. | Aerocare had previously come under fire for the practice of split shifts – where workers are offered two four-hour shifts in a day, separated by a few hours. In March, the ABC’s 7.30 aired disputed allegations that some workers were forced to sleep on the floor of airports due to the practice. The ABC subsequently published a clarification to the story and the matter is now before the Australian Communications and Media Authority. |
| Split shifts are outlawed under the relevant airport workers’ award, but were legal under the enterprise bargaining agreement at the time, and were also included under the proposed EBA struck down on Thursday. | Split shifts are outlawed under the relevant airport workers’ award, but were legal under the enterprise bargaining agreement at the time, and were also included under the proposed EBA struck down on Thursday. |
| In July, the Transport Workers’ Union said the agreement “ripped off” airport workers and was unfair because it allowed split shifts and reduced overtime pay. This meant that although the EBA’s base rate of pay was higher than the award, some workers on split or irregular shifts could be $1,100 worse off a month. | In July, the Transport Workers’ Union said the agreement “ripped off” airport workers and was unfair because it allowed split shifts and reduced overtime pay. This meant that although the EBA’s base rate of pay was higher than the award, some workers on split or irregular shifts could be $1,100 worse off a month. |
| Wilson said this argument was similar to that used against supermarket chain Coles after a part-time worker said he could be up to $2,504 worse off a year under its EBA. | Wilson said this argument was similar to that used against supermarket chain Coles after a part-time worker said he could be up to $2,504 worse off a year under its EBA. |
| There, the commission found an increase to the base rate did not outweigh the cuts to penalty rates. | There, the commission found an increase to the base rate did not outweigh the cuts to penalty rates. |
| On Thursday, Wilson ruled he was “unable to be satisfied” that Aerocare’s employees would be better off overall under their EBA. | On Thursday, Wilson ruled he was “unable to be satisfied” that Aerocare’s employees would be better off overall under their EBA. |
| He said the commission would have to look at what hours were worked when, in order to be convinced. | He said the commission would have to look at what hours were worked when, in order to be convinced. |
| “If an employee works predominantly at nights or on weekends, the higher base rate under the EBA will be counterbalanced by [its] lower penalties,” he said, quoting the judgment against Coles. | “If an employee works predominantly at nights or on weekends, the higher base rate under the EBA will be counterbalanced by [its] lower penalties,” he said, quoting the judgment against Coles. |
| As a result, Wilson said the application failed because Aerocare provided “absolutely no evidence” of rostering arrangements. | As a result, Wilson said the application failed because Aerocare provided “absolutely no evidence” of rostering arrangements. |
| “Assessing whether the 2017 agreement passes the better off overall test is made exponentially more difficult because of Aerocare’s claim that there is in effect ‘no roster’ as such but merely a constantly evolving set of hours determined by the algorithms of Aeronet with no human intervention as such,” he said. | “Assessing whether the 2017 agreement passes the better off overall test is made exponentially more difficult because of Aerocare’s claim that there is in effect ‘no roster’ as such but merely a constantly evolving set of hours determined by the algorithms of Aeronet with no human intervention as such,” he said. |
| “It is impossible to perform the analysis that would be required to resolve the question”. | “It is impossible to perform the analysis that would be required to resolve the question”. |
| Aerocare told the commission their rostering was programmed to avoid giving overtime shifts to workers. “If an employee could be rostered in such a way as to avoid overtime being paid [they would],” Wilson said. | Aerocare told the commission their rostering was programmed to avoid giving overtime shifts to workers. “If an employee could be rostered in such a way as to avoid overtime being paid [they would],” Wilson said. |
| In July, Aerocare’s chief executive, Glenn Rutherford, had argued it was “clear every employee will be substantially better off under the agreement”. | In July, Aerocare’s chief executive, Glenn Rutherford, had argued it was “clear every employee will be substantially better off under the agreement”. |
| Both Aerocare and the TWU agreed the EBA provided better leave entitlements, including domestic violence leave, free parking and a higher base rate. | Both Aerocare and the TWU agreed the EBA provided better leave entitlements, including domestic violence leave, free parking and a higher base rate. |
| The company also defended the practice of split shifts and reduced overtime. | The company also defended the practice of split shifts and reduced overtime. |
| “If Aerocare was required to pay overtime rates for the second of the split shifts, I believe that Aerocare would no longer allow split shifts,” it said in its submission. “It would employ additional staff to work separate shifts (of four hours). I verily believe that the effect of this would be an adverse affect on overall employee remuneration” | “If Aerocare was required to pay overtime rates for the second of the split shifts, I believe that Aerocare would no longer allow split shifts,” it said in its submission. “It would employ additional staff to work separate shifts (of four hours). I verily believe that the effect of this would be an adverse affect on overall employee remuneration” |
| But Wilson said the EBA’s benefits did not outweigh the cuts to penalty rates and the negatives of split shifts. | But Wilson said the EBA’s benefits did not outweigh the cuts to penalty rates and the negatives of split shifts. |
| On the commission’s analysis, a level one clerical trainee would be paid 16.7% less on Sundays under the agreement compared with the award, but would be paid 8.9% more between Monday and Friday. | On the commission’s analysis, a level one clerical trainee would be paid 16.7% less on Sundays under the agreement compared with the award, but would be paid 8.9% more between Monday and Friday. |
| A first-year advanced airline service agent would make 4.2% more Monday to Friday, but 4% less on Saturday and 19.1% less on Sunday. | A first-year advanced airline service agent would make 4.2% more Monday to Friday, but 4% less on Saturday and 19.1% less on Sunday. |
| The TWU welcomed the decision and said it would renegotiate with Aerocare on a new deal, and would now make an application to the Fair Work Commission. | The TWU welcomed the decision and said it would renegotiate with Aerocare on a new deal, and would now make an application to the Fair Work Commission. |
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| Australian trade unions | |
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