Duck v Airservices Australia (No 2)

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FEDERAL COURT OF AUSTRALIA

Duck v Airservices Australia (No 2) [2019] FCA 1148

File number: ACD 97 of 2017
Judge: BROMWICH J
Date of judgment: 26 July 2019
Catchwords: INDUSTRIAL LAW – where class action sought to recover difference between entitlements under individual contracts and entitlements under enterprise agreements – whether clauses of agreements operated to the effect that employees on individual contracts were not covered by the agreements – held: answer to the separate question is ‘yes’ – application dismissed
Legislation:

Air Services Act 1995 (Cth) s 42

Civil Aviation Act 1988 (Cth) s 91

Civil Aviation Amendment Act 1990 (Cth)

Fair Work Act 2009 (Cth) ss 50, 194

Federal Court of Australia Act 1976 (Cth)

Public Service Act 1922 (Cth)

Cases cited:

Amcor Ltd v Construction, Forestry, Mining and Energy Union [2005] HCA 10; 222 CLR 241

CPB Contractors Pty Limited v Construction, Forestry, Maritime, Mining and Energy Union [2019] FCAFC 70

Qube Ports Pty Ltd v Maritime Union of Australia [2018] FCAFC 72

Transport Workers’ Union of Australia v Linfox Australia Pty Ltd [2014] FCA 829; 318 ALR 54

Date of hearing: 2 – 3 April 2019
Registry: Australian Capital Territory
Division: Fair Work Division
National Practice Area: Employment & Industrial Relations
Category: Catchwords
Number of paragraphs: 73
Counsel for the Applicant: Mr T Lynch SC with Mr S Meehan
Solicitor for the Applicant: Adero Law
Counsel for the Respondent: Ms K Eastman SC with Mr A Hochroth
Solicitor for the Respondent: Ashurst

ORDERS

ACD 97 of 2017
BETWEEN:

CATHERINE DUCK

Applicant

AND:

AIRSERVICES AUSTRALIA

Respondent

JUDGE:

BROMWICH J

DATE OF ORDER:

26 JULY 2019

THE COURT ORDERS THAT:

1.The answer to common question 1 in the further amended originating application, ordered on 24 August 2018 to be heard as a separate question under r 30.01 of the Federal Court Rules 2011 (Cth), and reproduced below, be “Yes”:

Common question 1/separate question

Did/does:

(1)   cl. 1.5.3 of the 2009 Agreement [Airservices Australia Collective Agreement 2009-2013]; or

(2)   cl. 1.4.3 of the 2013 Agreement [Airservices Australia Enterprise Agreement 2013-2017];

as the case may be, operate to the effect that the applicant and each group member was/is not covered by that agreement.

2.The further amended originating application be dismissed.

3.The respondent make any application for costs within 14 days, by way of an email to the associate to Justice Bromwich, together with proposed procedural orders.

Note:   Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

BROMWICH J:

Introduction

  1. This is an adjudication of a separate question in an employment law class action concerning the application or otherwise of certain enterprise agreements to the benefits and entitlements of certain public sector employees with “individual” contracts of employment in the field of civil aviation services.

  2. From 1 July 1988 until 5 July 1995, both civil aviation services and civil aviation safety in Australia were the responsibility of the Civil Aviation Authority (CAA), pursuant to the

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Details
Case
[2019] FCA 1148
Decision Date

CaseChat Overview and Summary

In Duck v Airservices Australia (No 2), the Federal Court of Australia addressed a class action seeking to recover the difference between entitlements under individual contracts and entitlements under enterprise agreements. The applicant, Ms Duck, argued that the clauses of the agreements operated to the effect that employees on individual contracts were not covered by the agreements. The court was required to decide whether the clauses of the 2009 Agreement and the 2013 Agreement effectively excluded employees on individual contracts from the scope of those agreements.

The court found that Ms Duck’s argument regarding the utility of all employees being on "individual" contracts was not tenable. The court determined that Ms Duck was not employed under an individual contract of employment until she entered into the 2010 Contract, and subsequently the 2013 Contract, both of which fell within the exclusion phrase in the agreements. As a result, neither the 2009 Agreement nor the 2013 Agreement applied to Ms Duck. The court concluded that the answer to the separate question was "yes", meaning Ms Duck was not covered by either agreement. Consequently, the court dismissed the proceeding.

The court's orders included that the answer to the separate question be "yes", the further amended originating application be dismissed, and the respondent to make any application for costs within 14 days. This decision clarifies the scope of the enterprise agreements and the exclusion of employees on individual contracts from such agreements.

Orders

Orders of the court

1. The answer to common question 1 in the further amended originating application, ordered on 24 August 2018 to be heard as a separate question under r 30.01 of the Federal Court Rules 2011 (Cth), and reproduced below, be “Yes”:

Common question 1/separate question

Did/does:

(1) cl. 1.5.3 of the 2009 Agreement [Airservices Australia Collective Agreement 2009-2013]; or

(2) cl. 1.4.3 of the 2013 Agreement [Airservices Australia Enterprise Agreement 2013-2017];

as the case may be, operate to the effect that the applicant and each group member was/is not covered by that agreement.

2. The further amended originating application be dismissed.

3. The respondent make any application for costs within 14 days, by way of an email to the associate to Justice Bromwich, together with proposed procedural orders.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Ms Duck’s utility argument is similarly of no assistance to her. It depends upon the proposition that all employees of Airservices are on “individual” contracts as contemplated by the phrase “employed under an individual contract of employment” in cl 1.5.3 of the 2009 Agreement and in cl 1.4.3 of the 2013 Agreement. Although not expressed as follows, the substance of the argument seems to be that every Airservices employee is an individual, and has a contract of employment, so it must follow that they are all employed under an individual contract of employment. That cannot be accepted. As Ms Duck’s original employment offer made in December 2008 made clear, she was to be employed under the Air Services Act with terms and conditions as described in the 2005 Agreement, subject to security and medical checks, a probationary period of three months, and a requirement to join the Airservices Super Fund. Beyond these requirements, there were no separate contractual terms. She was not initially employed under an individual contract of employment. However, that changed when she entered into the 2010 Contract, which was an individual contract of employment; as was her subsequent 2013 Contract. Both of those contracts fell squarely within the exclusion phrase “employed under an individual contract of employment” in cl 1.5.3 of the 2009 Agreement and in cl 1.4.3 of the 2013 Agreement. Neither agreement therefore applied to her.Conclusion The answer to the separate question is “Yes”. It follows that Ms Duck was not covered by either the 2009 Agreement or the 2013 Agreement. As that answer is fatal to the success of this proceeding, the proceeding must be dismissed.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.