Air New Zealand Limited v New Zealand Air Line Pilots' Association Incorporated

IN THE COURT OF APPEAL OF NEW ZEALAND

CA570/2014
[2014] NZCA 570

BETWEEN	AIR NEW ZEALAND LIMITED Appellant
AND	NEW ZEALAND AIR LINE PILOTS’ ASSOCIATION INCORPORATED Respondent

Hearing:	25 November 2014
Court:	Randerson, Harrison and White JJ
Counsel:	J G Miles QC and P A Caisley for Appellant R R McCabe for Respondent
Judgment:	27 November 2014 at 10:00 am

JUDGMENT OF THE COURT

ALeave is granted under s 214 of the Employment Relations Act 2000 to appeal to this Court on the following question of law:
Did the Employment Court err in law in finding that cl 24.2 of the collective agreement between the New Zealand Air Line Pilots’ Association Incorporated (NZALPA) meant that Air New Zealand Limited was required upon request by NZALPA to pass on to members of NZALPA part only of a collective agreement reached on 15 March 2013 between Air New Zealand and the Federation of Air New Zealand Pilots Incorporated, namely the remuneration provisions applicable to B737-type first officers and all second officers?

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Solicitors:
Kiely Thompson Caisley, Auckland for Appellant
Richard McCabe, Auckland for Respondent

CaseChat Overview and Summary

Air New Zealand Limited (Air New Zealand) sought leave to appeal to the Court of Appeal against a decision of the Employment Court which ruled that they were required to pass on certain remuneration provisions of a collective agreement with another pilots’ association to members of the New Zealand Air Line Pilots’ Association Incorporated (NZALPA). The Employment Court found that clause 24.2 of the collective agreement between Air New Zealand and NZALPA required Air New Zealand to pass on the remuneration provisions from the new agreement with the Federation of Air New Zealand Pilots Incorporated to NZALPA members. Air New Zealand argued that the Employment Court erred in interpreting clause 24.2 and that it did not require them to pass on the remuneration provisions to NZALPA members.

The Court of Appeal found that the Employment Court did not err in its interpretation of clause 24.2. The Court held that the plain meaning of the clause required Air New Zealand to pass on to NZALPA members any benefits negotiated in the agreement with the other pilots’ association. The Court rejected Air New Zealand’s argument that the clause only applied to “terms and conditions of employment” and not to remuneration provisions. The Court of Appeal found that the Employment Court was correct to hold that clause 24.2 applied to the remuneration provisions in question.

The Court of Appeal dismissed Air New Zealand’s appeal and affirmed the decision of the Employment Court. The Court held that Air New Zealand was required to pass on the remuneration provisions to NZALPA members under clause 24.2 of the collective agreement. No further appeal shall lie.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established