Qantas Airways Ltd v Australian Licensed Aircraft Engineers Association (No 3)

Qantas Airways Ltd and Jetstar Airways Pty Ltd brought proceedings against the Australian Licensed Aircraft Engineers Association (Union) in the Fair Work Commission (Commission) seeking relief from certain industrial provisions in their applicable awards and agreements. The dispute arose from the impact of the COVID-19 pandemic on Qantas and Jetstar's operations, which led to the significant reduction of flights and the subsequent stand down of numerous employees, including licensed aircraft engineers. The Union argued that Qantas and Jetstar were reasonably responsible for the stoppage of work and were required to maintain the status quo for the engineers pending the resolution of the dispute. The court was required to decide whether Qantas and Jetstar could be reasonably held responsible for the stoppage of work and whether Jetstar was required to maintain the status quo for the engineers.

The court considered the well-accepted principles of construction for industrial awards and agreements, as well as the specific provisions in the Qantas and Jetstar agreements. The court found that the stoppage of work was a result of the substantial downturn in passenger flights, which was not reasonably preventable by Qantas or Jetstar. Both companies had explored and implemented every other cost-saving measure before resorting to standing down employees, and those measures were not sufficient to avoid the financial consequences of the pandemic. The court also found that Jetstar was not required to maintain the status quo for the engineers, as there was no work available for them to perform during the period of the stoppage.

The court granted declaratory relief in the form sought by Qantas and Jetstar, finding that neither company could be reasonably held responsible for the stoppage of work and that Jetstar was not required to maintain the status quo for the engineers. The court did not grant any injunctive relief, as it expected the Commission to pursue a course consistent with the declaratory relief granted. The court ordered the parties to bring in Short Minutes of Orders to give effect to these reasons within seven days.

The Fair Work Commission is now responsible for resolving any remaining outstanding questions, including whether the licensed engineers could have been usefully employed during the period when they were stood down and whether the lack of useful employment was due to the stoppage of work. This decision clarifies the responsibilities of employers and unions in situations where a significant event, such as the COVID-19 pandemic, affects the viability of a business and leads to the stand down of employees. It also highlights the importance of considering the context and practical implications of industrial provisions when interpreting and applying them in such situations.