[2023] FWC 1136
General information, not legal advice.
Fair Work Commission
2023-05-15
Commissioner P
Original judgment source is linked above.
The attached document replaces the document previously issued with the above code on 15 May 2023.
Minor typographical amendments to paragraphs [27], [85] and [87].
s.739 - Dispute resolution
Dispute about a matter arising under the enterprise agreement - application for stay of proceedings - stay granted.
[1] This decision concerns an application by Captain Anthony Lucas for an order to stay proceedings in matter numbers C2023/1371 and C2023/1755 pending the outcome of related proceedings in the Federal Court of Australia.
[5] On 16 March 2023, the Lucas Application was listed for mention and directions and the parties also participated in conciliation. The matter did not resolve and was adjourned until 20 March 2023 to allow the parties to have further discussions with respect to resolving the dispute.
[6] On 17 March 2023, Captain Lucas filed an application pursuant to s.615 of the FW Act, requesting the President of the Commission refer the Lucas Application to a Full Bench of the Commission (Referral Application).
[7] On 20 March 2023, the parties participated in a conference before the Commission. The matter was then adjourned until 29 March 2023 to allow the parties to have further discussions with respect to resolving the dispute.
[8] On 28 March 2023, both parties filed their proposed questions for arbitration in relation to the Lucas Application with my Chambers.
[9] On 29 March 2023, in a conference before the Commission, the parties advised that they have been unable to resolve the dispute. I then proceeded to deal with framing the questions for arbitration and setting the directions and hearing dates. In the absence of agreement between the parties as to the questions for arbitration, I determined that there would be two questions to be answered to resolve the dispute. The first question was set in broad terms and I provided the parties with an opportunity to submit their proposed final wording for the first question by 4:00pm that day. I advised the parties that I would settle the wording for question 1 having regard to the submissions filed. The second question was determined during the proceedings on 29 March 2023. The parties provided their proposed wording or question 1 later that day.
[10] On 30 March 2023, Captain Lucas filed a Form F1 application seeking that I recuse myself from further dealing with the Lucas Application (Recusal Application).
[12] On 31 March 2023, my Chambers issued the notice of listing, directions and questions for arbitration in the Lucas Application. The matter was listed to be heard over three days from 16-18 May 2023. My chambers also issued the notice of listing for the hearing of the Recusal Application.
[13] On 4 April 2023, I heard the Recusal Application.
[14] On 11 April 2023, Captain Lucas lodged a notice of appeal against the directions I made on 31 March 2023 (Directions Appeal) and lodged a jurisdictional objection to the Qantas Application. The jurisdictional objection contends that Qantas has not complied with the dispute settlement procedure in the Agreement.
[17] On 14 April 2023, Captain Lucas lodged a notice of appeal against my decision in the Recusal Application (Recusal Appeal).
[20] On 26 April 2023, I listed the Qantas Application for mention and directions on 1 May 2023.
[22] The Lucas Application was listed for mention and directions on 1 May 2023 together with the Qantas Application. During the mention and directions hearing, and after hearing from the parties, I determined, inter alia, that:
(i) The Qantas Application would be heard together with the Lucas Application; and
(ii) The application for an order to stay the Lucas Application and the Qantas Application pending the outcome of the Federal Court proceedings will be listed for hearing on 4 May 2023.
[23] On 3 May 2023, my Chambers issued an amended notice of listing and directions to reflect the applications being heard together, as well as amended questions for arbitration to include the additional question arising out of the undertaking given by Qantas in the Directions Appeal.
[24] The amended questions for arbitration are:
[25] By the stay application, Captain Lucas seeks that the Commission decline to exercise its discretion to arbitrate the dispute in the Lucas Application and the Qantas application at this time and adjourn the proceedings pending the outcome of the proceedings numbered NSD346/2023 in the Federal Court on the basis that the proceedings before the Commission and the Federal Court involve substantially the same issues.
[27] The application for a stay of both matters was heard on 4 May 2023 via Microsoft Teams Video. I exercised my discretion to grant permission to the parties to be represented by a lawyer in both matters, as I was satisfied that the preconditions set out in s.596 (2)(a) and (c) of the FW Act had been met. Captain Lucas was represented by Mr I Neil SC. Qantas was represented by Mr M Follett.
[28] Both parties filed an outline of submissions and documentary material. The following witness statements and documents were admitted into evidence:
(i) A witness statement of John Pavlou, Secretary of the Australian and International Pilots Association (AIPA) and employed by Qantas as a First Officer on the Boeing 787 (Exhibit 1);
(ii) The Originating Application and Statement of Claim in Federal Court proceedings numbered NSD346/2023 (Exhibit 2);
(iii) A Letter from AIPA to Herbert Smith Freehills dated 3 May 2023 (Exhibit 3); and
(iv) A witness statement of Douglas Alley, Head of Base Operations, Flight Operations employed by Qantas (Exhibit 4).
[29] Neither Mr Pavlou or Mr Alley were required for cross examination.
[30] For the reasons that follow I have determined to grant the application to adjourn the Lucas Application and the Qantas Application pending the outcome of proceedings numbered NSD346/2023 in the Federal Court.
[31] Qantas commenced the Federal Court proceedings against AIPA on 26 April 2023. By the originating application Qantas claims:
Power to stay proceedings and relevant principles
[33] Section 589 of the FW Act provides that the Commission may make decisions as to how, when and where a matter is to be dealt with.
[34] It is well established that the power conferred by s.589 of the FW Act is sufficiently broad to encompass a decision that the proceedings be adjourned pending the outcome of related proceedings elsewhere, including the Federal Court.[14]
[35] The decision to grant a stay is a matter of discretion, which discretion is to be exercised on a case-by-case basis, having regard to the statutory framework and all the relevant circumstances before the Commission.[15]
[5] In considering whether to exercise the discretion to make a decision with the effect that the applications would not be dealt with until after judgement is delivered in the Federal Court proceeding, it seems to me appropriate that I have regard to the relevant considerations that are taken into account by the courts in considering applications of this kind. Conveniently, in Sterling Pharmaceuticals Pty Limited v The Boots Company (Australia) Pty Limited, a case concerning an application to stay a proceeding because another proceeding involving related entities operating with a degree a common management and control, were involved in earlier commenced proceeding in New Zealand, Lockhart J set out a number of considerations his Honour said were relevant to the question whether a stay ought be granted:
"In my opinion relevant consideration is to be taken into account in the present case includes the following:
[42] Captain Lucas submitted that the test of what the interests of justice require and the six matters identified by Bromberg J in Teys was the approach that I should take in relation to the exercise of my discretion in this matter.
[44] The approach in Teys has been applied by the Federal Court in subsequent anti-suit injunction applications where there are related proceedings before the Federal Court and the Commission.
[47] As was the case in Teys, the dispute in this matter includes a dispute over the interpretation of an enterprise agreement. Accordingly, and having regard to the authorities and the submissions of the parties, I consider that the approach applied in Teys is the correct approach to apply in this matter.
[48] Captain Lucas submitted that the justification for the exercise of discretion is the pendency of the proceedings in the Federal Court in which arise substantially the same issues as the disputes before the Commission, which Qantas acknowledges in its submissions.
[49] Captain Lucas submitted that any issues present in the dispute before the Commission that do not arise in the originating application filed by Qantas, will be covered in a cross-claim that the AIPA intends to file. It was submitted that there are two sets of proceedings, both pending, and both concerning for every practical purpose the same issues.
[50] Captain Lucas submitted that the circumstances of this matter are closely analogous to those considered by Commissioner Lee in Metro Trains which applied the matters identified in Teys and made detailed submissions comparing the decisions in Teys and Metro Trains to the circumstances of this matter.
[51] In relation to the six matters identified by Bromberg J in Teys, it was submitted that, without doubt, matters 1, 2 and 5 exist and that matter 5 is of primary importance. In relation to matter 5, it was submitted that it the potential for inconsistent answers to substantially the same questions is inevitable.
[53] In relation to matter 4, Captain Lucas accepted the matters in dispute are not of general importance in the manner that they were in Teys but were important to the parties involved and could have serious consequences for members of AIPA.
[54] In relation to matter 6, Captain Lucas accepts that if the stay is granted it will lead to delay. Captain Lucas addressed three matters relevant to delay. First, it was submitted that Qantas' case in relation to prejudice does not rise above unparticularised, generalised assertions.
[55] Second, it was submitted that it does not appear that Qantas has taken any steps to seek an expedited hearing. Mr Neil stated that the AIPA is prepared to undertake to the Commission as a condition of any order that:
(i) If Qantas seeks expedition of the Federal Court proceedings, the AIPA will consent to that application;
(ii) If Qantas does not seek expedition, then upon the filing of its cross-claim, it will do so and will pursue that application regardless of the position Qantas takes; and
(iii) The AIPA will do all things reasonably possible to facilitate the earliest convenient hearing of the proceedings in the Federal Court.
[56] In relation to the third undertaking, Mr Neil stated that the AIPA will be filing its defence and cross-claim within a week. It was submitted that the undertakings and the effect that will be given to them substantially ameliorate the delay.
[57] Third, Captain Lucas submitted that by commencing proceedings in the Federal Court but seeking to run both proceedings it is essentially forum shopping and that Captain Lucas, the AIPA and its members should not be vexed in that way.
[58] Qantas submitted that almost all relevant considerations favour the Commission proceeding to hear and determine the Lucas Application and the Qantas Application.
[60] Turning to the matters in Teys, Qantas submitted that matters 3 and 4 in Teys do not arise.
[61] In relation to matter 3, Qantas submitted that the legal issues in this matter and in the Federal Court are not of the same degree of complexity as there were in Teys, and that the only issue that arises (or overlaps) in the Federal Court proceedings is question 2 of the questions for arbitration.
[63] In relation to matter 4, Qantas submitted it is simply unknown how many pilots this case will affect as it is unknown how many direct allocations Qantas might have a desire for over the next five years, what operational reasons might exist in the future, and what reasons the AIPA may have for refusing.
[64] Qantas submitted that while matters 1, 2, and 5 apply, they are structural matters that apply in every case.
[66] In relation to point 6, Qantas submitted that this matter is crucial. Qantas submitted that it is not an insignificant matter to interfere with the ordinary course by a stay of proceedings and the length of delay contemplated by the application is against the proper administration of justice in circumstances where the Commission has a statutory mandate to deal with matters quickly.
[67] Qantas submitted that Captain Lucas' reliance on Metro Trains is misplaced as the matters were at different stages - the Federal Court proceedings were listed for hearing, whereas the Commission proceedings were at the conciliation stage.
[68] Qantas submitted that delay in these proceedings will lead to prejudice through a training backlog with the result that it will not have sufficient pilots to operate the flights that it wants to operate.
[71] In its originating claim, Qantas seeks a declaration that the AIPA contravened a civil remedy provision by unreasonably withholding its agreement in contravention of clause 19.1.2 of the Agreement. Qantas also seeks orders relating to the payment of pecuniary penalties.
[72] Counsel for Captain Lucas foreshadowed that any residual matters in these proceedings will form part of a cross-claim to be filed by the AIPA. The residual matters, namely questions 1 and 3 of the questions for arbitration, relate to the proper construction of clause 19.1.2 of the Agreement and the interrelationship, if any, of clause 19.1.2 and clause 16.5. Counsel for Captain Lucas has also stated that the AIPA will be seeking orders relating to the payment of pecuniary penalties against Qantas.
[73] It is a matter of record that the AIPA has subsequent to the hearing of this application filed its defence and cross claim. If AIPA's cross-claim has sought declarations as foreshadowed by Counsel for Captain Lucas, then the substantive issues to be resolved necessarily arise for determination in both this proceeding and the Federal Court proceedings.
[74] In these circumstances, the considerations identified as matter 1 and matter 2 by Bromberg J in Teys weigh in favour of granting the stay application.
[75] In relation to matter 3, I accept Qantas' submission that it does not arise in these proceedings.
[76] In relation to matter 4, while I accept the proceedings are not of general importance in the manner that they were in Teys, I accept that similarly to the finding of Commissioner Lee in Metro Trains, this issue is clearly important to the parties and its resolution could affect the services Qantas provides and/or the seniority and remuneration of Qantas' long haul pilot cohort.
[77] In relation to matter 5, there is clearly a risk of inconsistent answers being provided on the same issues, namely the proper construction of the Agreement and whether the AIPA has unreasonably withheld its agreement. In Teys, Bromberg J identified matter 5 as the most important. I agree. Furthermore, that the parties to the Federal Court proceedings have both sought (or foreshadowed seeking) orders relating to pecuniary penalties against the other leads to a conclusion in my view that the risk of inconsistent answers weighs more heavily than might otherwise be the case.
[80] I also consider that Qantas and the AIPA have both sought (or foreshadowed seeking) orders relating to pecuniary penalties against the other, and that Captain Lucas has raised a jurisdictional objection to the Qantas Application distinguishes this matter from Clermont Coal and One Tree.
[81] In relation to the matter 6, this is a matter which I have given careful consideration. The proceedings in the Commission were commenced prior to the Federal Court proceedings. The proceedings in the Commission are listed for hearing over three days commencing tomorrow. I accept granting the stay application will result in some delay.
[82] However, while Qantas submitted that the uncertainty regarding the timing of the Federal Court proceedings could lead to the matter not being heard before late 2024, since the hearing of the application the following developments have occurred:
(i) The AIPA have filed its defence and a cross-claim;
(ii) The Federal Court has listed the Federal Court proceedings for case management hearing on 1 June 2023.
[83] The listing of the case management on 1 June 2023 is well in advance of Qantas' anticipated time-frame.
[86] In relation to the preparation of evidence and submissions in the Commission proceedings, I do not accept that much of that work will be wasted if an adjournment is granted as the materials could be reprised and used for the Federal Court proceedings.
[88] This application has raised difficult issues in which there are competing considerations.
[89] Having regard to the consideration set out above, I am satisfied that the application to stay the proceedings in matters C2023/1371 and C2023/1755 pending the outcome of the proceedings numbered NSD346/2023 in the Federal Court be granted. An order to that effect will be issued with this decision.

I Neil SC of counsel for Captain Lucas in both matters.
M Follett of counsel for Qantas Airways Limited in both matters.
[3] Captain Anthony Lucas v Qantas Airways Limited (2022/7094).
[6] Captain Anthony Lucas v Qantas Airways Limited [2023] FWC 878.
[7] Captain Anthony Lucas v Qantas Airways Limited [2023] FWC 888.
[8] Captain Anthony Lucas v Qantas Airways Limited [2023] FWCFB 77.
[10] Captain Anthony Lucas v Qantas Airways Limited [2023] FWCFB 80.
[14] See for example, Bowker v DP World Melbourne Limited [2014] FWC 7326 (Bowker) at [4]; French v The Good Guys Discount Warehouse (Australia) Pty Ltd [2017] FWC 3545 (Good Guys) at [22]; Re Esso Australia Pty Ltd [2018] FWC 6244 (Esso) at [10]; Mubashir v Rasier Pacific Pty Ltd [2021] FWC 4729 (Rasier Pacific) at [10]; Jayasundera v Electricity Networks Corporation [2022] FWC 1611 (Jayasundera) at [8] (see also Jayasundera v Electricity Networks Corporation [2022] FWCFB 149 (Jayasundera Appeal) at [24]).
[15] Bowker at [6]; Esso at [11] and [13]; Visy Board Pty Ltd v Rustemovski [2018] FWCFB 1255 (VisyBoard) at [42]-[49]; Jayasundera at [20].
[16] Esso at [11] and [19]; Jayasundera Appeal at [44].
[17] Jayasundera Appeal at [44]-[45].
[19] [1992] FCA 71 (Sterling Pharmaceuticals).
[21] [2015] FCA 1033 (Teys).
[24] [2017] FWC 4571 (Metro Trains).
[25] Metro Trains at [13] citing Teys at [31]-[38].
[29] [2018] FCA 128 (Aerocare Flight Support).
[30] Aerocare Flight Support at [27] and [31].
[31] [2020] FCA 682 (Qantas v ALAEA).
[34] [2015] FCAFC 136 (Clermont Coal) at [9]-[12].
[35] [2020] FCA 390 (One Tree) at [97].
[36] [2017] FCA 1245 (Energy Australia Yallourn).
[37] Teys at [31]; Aerocare Flight Support at [27] and [29]; Qantas v ALAEA at [6].
[38] Teys at [42]; Qantas v ALAEA at [97].
[39] Aerocare Flight Support at [31] citing Teys.
[40] Energy Australia Yallourn at [106].
[41] See Aerocare Flight Support at [21].
[45] See clause 47.2 of the Agreement, definition of 'party'.
Printed by authority of the Commonwealth Government Printer
Captain Anthony Lucas
Qantas Airways Limited [2023] FWC 1136