Crosthwaite v National Jet Systems Pty Ltd (No.4)

Kerren Maree Crosthwaite, a Workplace Inspector appointed under s.176 of the Workplace Relations Act 1996 (Cth) brought proceedings against National Jet Systems Pty Ltd (NJS) in relation to alleged breaches of Pre-Reform Australian Workplace Agreements (AWA) and alleged duress in connection with the making of AWAs. Crosthwaite sought orders for the imposition of penalties for breaches of AWAs, and for duress. NJS argued that it was not obliged to make Consumer Price Index (CPI) salary increases for 2006 and 2007 because of the construction of the phrase "[d]uring the currency of this agreement" in the relevant AWAs. NJS also argued that Crosthwaite was estopped from enforcing the obligations to pay the CPI increases under the AWAs. Crosthwaite argued that the CPI increases should have been paid because the AWAs remained current until they were terminated, and that the AWAs did not prevent the payment of the CPI increases. NJS further argued that Crosthwaite was estopped from enforcing obligations to pay the CPI increases because of representations made by the National Jet Systems Pilot Group (NJSPG) to its pilots. Crosthwaite argued that the AWAs could not be contracted out of and that estoppel could not operate in relation to the enforcement of the AWAs. The Court found that the AWAs were current until terminated and that they obliged NJS to pay the CPI increases. The Court found that estoppel did not apply because the AWAs could not be contracted out of. Crosthwaite also alleged that NJS applied duress to two pilots in connection with the making of AWAs. NJS argued that it had not applied duress to the pilots. Crosthwaite argued that NJS had applied duress to the pilots by applying pressure through a series of steps and communications, including the termination of their AWAs. NJS argued that it had not applied duress. The Court found that NJS had applied pressure to the pilots but that this did not amount to duress. The Court ordered that the parties confer with respect to appropriate declarations and orders, and that the matter be adjourned to a directions hearing. Costs were reserved.