Australian Federation of Air Pilots v Skywest Airlines Pty Ltd

The Industrial Relations Court of Australia, Victoria District Registry, dealt with a case involving the Australian Federation of Air Pilots as the applicant and Skywest Airlines Pty Ltd as the respondent. The applicant alleged that the respondent breached or failed to observe certain clauses of the Skywest Airlines Pty Ltd Pilots' Agreement 1986, specifically clauses 30 and 30F. The applicant claimed that the respondent failed to maintain the Pilots' System Seniority List and did not assign Captain C Batty to available positions in accordance with the seniority list.

The central legal issue was whether Skywest Aviation Pty Ltd, a company that took over part of Skywest Airlines Pty Ltd's business, was bound by the award and thus required to maintain an integrated seniority list. The applicant argued that the award bound Skywest Aviation Pty Ltd as a successor to the business of Skywest Airlines Pty Ltd. The court examined subclause 4A of the award and section 88ZB of the former Conciliation and Arbitration Act 1904, concluding that Skywest Aviation Pty Ltd was indeed bound by the award due to the substantial identity of activities between the two companies.

The court found that the award required Skywest Airlines Pty Ltd to maintain an integrated seniority list, including pilots employed by Skywest Aviation Pty Ltd. This requirement was reinforced by the insertion of subclause 30D in 1992, which aimed to create a unified seniority list for pilots employed by both companies. Consequently, the court declared that the respondent breached the award by failing to maintain the Pilots' System Seniority List from 8 September 1994 onwards and by not assigning Captain C Batty to available positions in September or October 1994, contrary to the seniority list. The matter was adjourned to determine the appropriate penalty for the respondent's breaches.