Australian Licensed Aircraft Engineers Association v Qantas Airways Limited

The Australian Licensed Aircraft Engineers Association initiated legal proceedings against Qantas Airways Limited and Jetstar, seeking to challenge the airlines' decision to stand down their licensed aircraft maintenance engineers (Aircraft Engineers) due to the COVID-19 pandemic. The Federal Court of Australia was asked to determine if the stand downs were lawful under the respective enterprise agreements. The primary judge found in favour of the airlines, and the association appealed this decision. The airlines cross-appealed against the dismissal of their application for an injunction or writ of prohibition directed to the Fair Work Commission (FWC). The court was tasked with determining whether the primary judge correctly interpreted the stand down clauses and whether the preconditions for dispute resolution were met.

The court examined the wording of the stand down clauses, focusing on the phrase "stoppage of work." The primary judge had concluded that the substantial reduction in passenger flights due to the pandemic constituted a "stoppage of work." The court agreed with this interpretation, finding that the substantial downturn in economic activities of the airlines was a significant factor in the decision. The court also addressed the issue of causation, determining that the immediate cause of the stand downs was not the airlines' decision but rather the pandemic and government measures restricting travel. Furthermore, the court found that considering the reasonableness of the employers' actions, including economic factors, was appropriate in interpreting the clauses.

The appeal and cross-appeal were dismissed by the court. The court upheld the primary judge's interpretation of the stand down clauses and concluded that the preconditions for dispute resolution were met. The court found that the primary judge correctly determined that the substantial reduction in flights due to the pandemic constituted a "stoppage of work," and the airlines' actions were reasonable given the economic circumstances. The court also rejected the argument that the status quo clause in the Jetstar Agreement required the airline to maintain operations while the dispute was being resolved.

ORDERS:
1. The appeal be dismissed.
2. The cross-appeal be dismissed.