Application for approval of the Cathay Pacific Airways Ground Staff Workplace Agreement 2025 - 2026

[1] Cathay Pacific Airways Limited (the Employer) has made an application for approval of an enterprise agreement known as the Cathay Pacific Airways Ground Staff Workplace Agreement 2025 - 2026 (the Agreement) pursuant to s.185 of the Fair Work Act 2009 (the Act). The Agreement is a single enterprise agreement.

[2] The Agreement will apply to employees who are covered by the Airline Operations - Ground Staff Award 2020 (Award).

[3] Clause 6 of the Agreement states that the Agreement will commence on the date of approval by the Fair Work Commission. Section 54 of the Act provides an agreement will operate from 7 days after approval unless a later date is specified.

[4] The Employer submitted that it is aware the Agreement commenced 7 days after approval from the Fair Work Commission and that clause 6 was incorrectly drafted due to an oversight.

[5] The Commission raised the following issues with the Employer which are relevant to whether employees are better off overall under the Agreement compared to the Award:

1. Clauses 20.2.2 of the Agreement provides that part time employees can work up to 7.5 hours per day or 37.5 hours per week without the payment of overtime, unless they are working over their rostered shift due to a flight delay in which case they are paid at 200%. In contrast, clause 10.2 of the Award provides part time employees with overtime for all time worked in excess of the ordinary daily hours mutually arranged. If part time employees regularly work in excess of their daily agreed hours, which could be a minimum of four per day, but do not receive overtime until after they have worked more than 7.5 hours per day or 37.5 hours per week, they may not be better off as rates of pay may not be high enough to compensate.

2. Clause 17.4 of the Award provides a permanent night shift rate of 130% for shiftworkers who work night shift only or remain on night shift for more than four consecutive weeks or work on a night shift which does not rotate with another shift or with day work so that the shiftworker does not have at least one third of their working time off night shift in each roster cycle. Clause 18 of the Agreement appears to be silent on permanent night shift, with clause 18.2 providing a night shift rate of 122.5%. Rates of pay for the aviation transport stream appear to compensate, however if employees in the clerical, administration and support stream perform continuous night shifts, they may not be better off.

3. Clause 19.1 of the Agreement provides higher duties for the whole shift, however the minimum number of hours worked to claim higher duties is four, which could be worked in a single shift or over a pay period. Clause 18.7 of the Award provides higher duties for the whole day or shift without a minimum number of hours worked. Furthermore, the Agreement clause states that higher duty payments will not be automatically aligned with the salary of the permanent incumbent of the position in which the higher duties are being performed, whereas the Award provides employees will be paid at the higher rate. Rates of pay for some employees may not compensate if they work in a higher classification for less than four hours over a pay period and do not receive higher duties when they would otherwise be paid at the higher rate for the whole shift under the Award.

Section 190 Undertakings

[6] The Employer provided written undertakings to address the above BOOT issues. 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. The undertakings are taken to be a term of the Agreement.

Section 186, 187, 188 and 190

[7] 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.

Section 183 Bargaining Representatives

[8] The Australian Municipal, Administrative, Clerical and Services Union (ASU) being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it.

[9] In accordance with s.201(2), I note that the Agreement covers the ASU.

[10] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 20 May 2025. The nominal expiry date of the Agreement is 31 December 2026.

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