Where do the balance of convenience and the interests of justice lie?
44 The Airlines submitted that the balance of convenience is strongly in their favour.
45 First, they argued that there is a "substantial jurisdictional and merit case" before the Commission with respect to each dispute; the directions made by the Commission contemplate the Commission dealing with the jurisdictional and substantive questions together; they are due to file their evidence and submissions on the factual questions (stoppage, causation, and useful employment) by 19 May 2020, and they should not be put to the time, effort and expense of doing so when the Commission's jurisdiction to engage in that process at all is in serious issue.
46 Second, they argued that the jurisdictional question before the Commission is the same question arising for determination in this Court and the Commission's decisions are reviewable for excess of jurisdiction. In practice, they submitted that any decision in the Commission proceeding will be reviewable on that basis, regardless of the outcome on the merits.
47 Third and consequently, they contended that neither the ALAEA nor its members would be materially prejudiced if the jurisdictional question is conclusively determined now. They argued that, if the Commission proceedings were allowed to take their course, "which would presumably include an appeal on jurisdiction", the resolution of the dispute would inevitably be delayed and this would add to "the prospect of further fragmentation of the proceedings".
48 The second submission may be accepted. Irrespective of the merits of the Airlines' case, however, I have considerable difficulty with the first.
49 While there is no doubt that it would be more efficient to have the jurisdictional question determined first, the fact that the issues have been slated for determination together is of the Airlines' own making.
50 The Airlines were not entirely frank with the Court about this matter.
51 During the hearing I inquired whether they had asked the Commission to deal with jurisdiction as a separate, preliminary question. This was the reply:
MR PARRY: Well, we were involved in - some of decision-making in the Commission. And there was issues raised about dealing with the jurisdictional issue. Ultimately we saw that as unsatisfactory and - I think we deal with this in our submissions in paragraph and footnote 44, where we consented to directions that were being made. And when we consented to those directions back on 3 April as we say in footnote 44, that consent to those directions was provided at a time before the broader stoppage issue was in play, that is, the issue that goes to the whole business of Qantas and Jetstar, before the causation issue was in play and before the applicants being asked appreciated the volume of material that the union planned to file on the useful work issue. And also, to be blunt, the underestimation of the nature and extent of the work involved …
52 In his affidavit, Mr Smith mentioned only the amended directions made on 3 April 2020. He did not disclose the original directions or the reason for the amendment. It transpired that the amended directions were made at the Airlines' request.
53 Mr Purvinas said at [41]-[42] of his affidavit:
At 6pm AEST on 1 April 2020, the Commission held a directions hearing. At the conclusion of that hearing, the parties agreed on directions that would have had the ALAEA's proposed interim order in respect of the Jetstar stand down clause, and Qantas's jurisdictional objection, heard before the substantive matter. As best as I recall, the agreed hearing date was 24 April 2020, although I could be wrong about that. The matters were certainly going to be heard before the end of April.
On 2 April 2020, I am informed that Qantas' counsel contacted our counsel proposing alternative directions, which had the jurisdictional objections heard at the same time as the substantive dispute. Although the ALAEA's preference was for its interim order to be heard quickly, we agreed to this in the interest of avoiding further disputation and having the proceedings continue in an orderly way.
(Emphasis added.)
54 In other words, this was not just a case of the Airlines consenting to the Commission hearing the jurisdictional and substantive questions together; it was their idea.
55 I do not accept that the delay would not cause any prejudice either to the ALAEA or to the employees they represent. There is some prejudice to the ALAEA which has incurred costs in the Commission proceeding for which the Airlines have not offered compensation. Delay in the determination of the dispute would have an obvious impact on the employees.
56 There are other considerations militating against the grant of relief.
57 First, not all questions may be resolved in this Court. If the Airlines lose their jurisdictional argument but obtain the declarations they seek, the residual question of whether the employees are unable to be usefully employed will still have to be heard by the Commission.
58 Second, there appears to be no immediate threat of irreparable harm to the Airlines if the interlocutory relief they seek is not granted: ResMed Limited v Australian Manufacturing Workers' Union (AMWU) [2016] FCAFC 23 at [15] (Jessup, Buchanan and Katzmann JJ). The Commission has not yet determined the jurisdictional question. If the Airlines' case is as strong as they contend, they should be able to persuade the Commission that the application before it cannot proceed. If Qantas were to fail on this and any of the other issues, permission to appeal is not required; it has an appeal as of right to the Full Bench and the appeal is in the nature of a rehearing: Australian Manufacturing Workers' Union v Silcar Pty Ltd [2011] FWAFB 2555; 208 IR 33. The Commission may grant Jetstar permission to appeal, should it seek it, and it must do so if it is satisfied that the appeal is in the public interest: FW Act, s 604(2). While there is no appeal to this Court from the Commission, if the Airlines' jurisdictional challenge were to fail in the Commission, there was no dispute that they have a right to seek judicial review of that decision (see, for example, Maersk Crewing Australia Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union [2020] FCA 595 at [24]-[34] per Colvin J), even if, absent error of law on the face of the record, its other findings are beyond the reach of the Court (see Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v ALS Industrial Australia Pty Ltd (2015) 235 FCR 305 at [81] per Dowsett, Tracey and Katzmann JJ; Endeavour Energy v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (2016) 244 FCR 178 per North, Jessup and Reeves JJ).
59 Third, there is little doubt that the Commission can hear and determine the matter before it more quickly than this Court. That is a matter which weighs against the Airlines: see, for example, Paull v Linfox Australia Pty Ltd [2018] FCA 149 at [16] (Bromberg J). Hearing dates have already been fixed. A good deal of evidence has apparently been filed, including a statement from Mr Purvinas which, I was informed, exceeds 1,600 pages including annexures. Some submissions have also been filed. Since the Commission is not bound by the rules of evidence, absent agreement, not all of that evidence could be adduced in this Court.
60 Fourth, if, as the Airlines submitted, they would be put to considerable expense in assembling the evidence on the stoppage and causation questions, they could ask the Commission to vary its directions so as to defer a hearing on those questions until after the questions of jurisdiction and useful employment are heard and determined. In that event, if the useful employment question were determined in favour of the ALAEA, as Ms Saunders, who appeared for the ALAEA submitted, "the whole thing would fall away". She informed the Court that the ALAEA would be open to that course and the matter "can be sensibly case managed by the Commission".
61 Fifth, while I am persuaded that the Airlines have an arguable case, I am not convinced it is as strong as they claim.
62 As the ALAEA pointed out, an immediate difficulty arises because the Airlines are not merely seeking to restrain the Commission from dealing with the substantive dispute, they are seeking an order preventing the Commission from determining for itself whether it has jurisdiction to do so. There is no doubt that it is within the Commission's power to decide that question and, if the Airlines do not like the answer, it is common ground that they can still seek relief in this Court.
63 On the remaining questions, the ALAEA accepted that the Commission's jurisdiction depends on the terms of the dispute resolution processes in the enterprise agreements, but argued that the process in each agreement was "simple and not constrained by formality" and the evidence before the Court shows that it was followed both in form and in substance.
64 On the basis of Mr Purvinas's evidence, the ALAEA argued that the Airlines' central contention - that no individual employee raised the dispute with their supervisor - was untrue. Mr Purvinas stated in his affidavit that on 19 March 2020 he had spoken to Robert Toovey, a LAME employed by Jetstar, who is also an executive member of the ALAEA, and that Mr Toovey told him that he believed the stand downs were not authorised under the Agreement, that he disputed Jetstar's power, that he had spoken to his supervisor about the issue, and that they were unable to resolve the dispute. Mr Purvinas also deposed that around 25 March 2020 he spoke to Luke Murray, an ALAEA official and a LAME employee of Qantas and that Mr Murray informed him that he had spoken to his Qantas manager about the stand downs, asking that he be stood down and replaced by another LAME, who had been stood down, but his request was not approved.
65 The evidence about the conversation with Mr Murray does not take the ALAEA's case very far. The evidence about the conversation with Mr Toovey is closer to the mark. It is true that the evidence Mr Purvinas gave was hearsay. But there is no reason to believe that, if Mr Toovey put on evidence himself, it would not support Mr Purvinas's account. I accept that it is unclear which supervisor Mr Toovey spoke to. But that is unlikely to be a matter of any moment and could easily be clarified.
66 In any event, there is a real issue as to how the relevant clauses should be construed.
67 The ALAEA submitted that, "in the context of a collective dispute" like the present, which could only be resolved by senior management, and where discussions at the supervisor level would be futile, it is "highly doubtful" that, correctly interpreted, the dispute resolution clauses require consultation with supervisors.
68 It seems to me that this submission has force.
69 The principles applying to the interpretation of an enterprise agreement were summarised by the Full Court in WorkPac Pty Ltd v Skene (2018) 264 FCR 536 at [197] (Tracey, Bromberg and Rangiah JJ):
The starting point for interpretation of an enterprise agreement is the ordinary meaning of the words, read as a whole and in context: City of Wanneroo v Holmes (1989) 30 IR 362 at 378 (French J). The interpretation "turns on the language of the particular agreement, understood in the light of its industrial context and purpose": Amcor Ltd v Construction, Forestry, Mining and Energy Union (2005) 222 CLR 241 (Amcor) at [2] (Gleeson CJ and McHugh J). The words are not to be interpreted in a vacuum divorced from industrial realities (Holmes at 378); rather, industrial agreements are made for various industries in the light of the customs and working conditions of each, and they are frequently couched in terms intelligible to the parties but without the careful attention to form and draftsmanship that one expects to find in an Act of Parliament (Holmes at 378-379, citing George A Bond & Company Ltd (in liq) v McKenzie [1929] AR (NSW) 498 at 503 (Street J)). To similar effect, it has been said that the framers of such documents were likely of a "practical bent of mind" and may well have been more concerned with expressing an intention in a way likely to be understood in the relevant industry rather than with legal niceties and jargon, so that a purposive approach to interpretation is appropriate and a narrow or pedantic approach is misplaced: see Kucks v CSR Ltd (1996) 66 IR 182 at 184 (Madgwick J); Shop Distributive and Allied Employees' Association v Woolworths SA Pty Ltd [2011] FCAFC 67 at [16] (Marshall, Tracey and Flick JJ); Amcor at [96] (Kirby J).
70 Amcor Limited v Construction, Forestry, Mining and Energy Union (2005) 222 CLR 241 related to a certified agreement under the Workplace Relations Act 1996 (Cth). In that part of the judgment to which the Full Court referred in WorkPac, Kirby J said that, in combination, "the nature of the [agreement in question], the manner of its expression, the context in which it operated and the industrial purpose it served" suggested that the relevant clause should not be strictly construed but construed in a way "that contributes to a sensible industrial outcome such as should be attributed to the parties who negotiated and executed the [a]greement". His Honour observed that that was the proper approach to interpreting clauses in certified agreements, expressing agreement with the oft-cited passage from the judgment of Madgwick J in Kucks v CSR Ltd (1996) 66 IR 182 at 184. His Honour emphasised two remarks in that passage, one of which was that "meanings which avoid inconvenience or injustice may reasonably be strained for".
71 Not every industrial dispute, including disputes arising at the workplace about matters arising under an enterprise agreement or in relation to the National Employment Standards, start on the shop floor. It is hard to imagine that the intention of the parties to the Agreements was to require individual employees to speak to their immediate supervisors about a dispute arising out of circumstances which affect the entire workforce or substantial parts of it when their union is in discussions with senior management about it.
72 The ALAEA referred to the decision of the Full Bench in University of New South Wales v National Tertiary Education Industry Union [2009] AIRCFB 571; 184 IR 121 (Giudice J presiding) in which a similar dispute-resolution procedure appeared in the enterprise agreements the university had with the union. That required employees to first discuss the dispute with their supervisors before escalating the matter to the relevant Dean or Divisional Head and, only after this second step, was referral permitted to the Australian Industrial Relations Commission for resolution. The university submitted that there was insufficient evidence that the matter had been raised by the employees with their supervisors as required by the dispute settlement procedure and that it was not open to the union to act in a general representative capacity in that respect. The Full Bench remarked at [18] that the submission was based on a very narrow reading of the procedure and observed:
On that reading a collective dispute can only be dealt with in so far as it is constituted by the aggregate of a number of individual disputes, each of which must go through every step of the procedure. The settlement of such a dispute would necessarily also be confined to the specific employees identified. If this approach were to be adopted it would lead to some very inconvenient results, to say the least. Take a case involving the interpretation of a provision of an agreement about which only one employee raised an issue for resolution. The settlement of the dispute would be incapable of application to any other employees, with the result that each individual employee wishing to take advantage of it would need to raise an individual dispute for resolution.
73 The Full Bench went on to say at [19]:
The inconvenience of this approach is illustrated by the facts of this case. The main issue in dispute is whether the provisions of the agreement governing annual leave apply in the case of a shutdown or whether they give way to the terms of s 236(5) of the Act. The University's position on this issue never altered. To require every employee to raise a separate dispute would be time-consuming, costly and self-defeating. On our reading of the procedures a dispute on a matter of general application can be raised by an individual employee and dealt with on a general basis. Dispute settlement procedures in agreements, to be effective, must be simple and easy to apply. The interpretation proposed would lead to delay and complexity in the application of the procedures in the agreements we are concerned with and tend to frustrate rather than promote the settlement of disputes. It should be rejected.
74 As for the other jurisdictional point, the subject matter of the dispute raised with senior management was whether the stand downs were permitted under the Agreements. The ALAEA submitted that a contention that an employee's usual work is available, which, on the evidence, was advanced in the meeting on 20 March, is just as much a contention that there is no stoppage of work as it is an argument about whether useful work is available. The ALAEA also submitted that the fact that the questions were not formulated with precision before they were taken to the Commission does not change the inherent nature of the dispute.
75 In support of the contrary position, the Airlines relied on the decision of the Full Bench in SSX Services Pty Limited v The Australian Workers' Union [2015] FWCFB 3964 for the proposition that the Commission lacks jurisdiction to deal with the dispute because the dispute that was taken to the Commission was not the dispute raised with management.
76 At first instance in SSX Services the Commissioner was satisfied that the employees could not be usefully employed but went on to decide that this was not for any of the reasons for which stand downs are permissible under the Act when that issue had not been addressed by either party. The Full Bench said at [18]:
The characterisation of disputes arises in various contexts under the Act, most particularly in relation to disputes arising from the application of awards and agreements. It is necessary to have regard to the nature of a dispute alleged in an originating application and the factual circumstances as they evolve for the purposes of conciliation and arbitration of the dispute.
77 That decision appears to be distinguishable. The Full Bench was not concerned with the jurisdiction of the Commission to arbitrate a dispute under a dispute resolution clause in an enterprise agreement. The power in question was the power of the Commission conferred by s 526 of the Act to deal with a dispute about the operation of Pt 3-5. Here, the Commission's power to deal with the disputes was conferred by the Agreements and regulated by Pt 6-2.
78 Under the terms of the dispute resolution clauses in the Qantas and Jetstar Agreements, the Commission's jurisdiction depends on whether the disputes relate to a matter arising under the Agreements or in relation to the National Employment Standards. That may be the only level of characterisation required as the subsequent discussion in SSX Services suggests. While I accept that the Airlines' position is certainly arguable, I do not consider that SSX Services necessarily supports it.
79 Nevertheless, the assessment of harm to the applicant, if no injunction is granted, and the prejudice or harm to the respondent if it were, "is at the heart of the basket of discretionary considerations which must be addressed and weighed as part of the Court's consideration of the balance of convenience and justice": Samsung at [62].
80 While refusing the injunction poses no immediate threat of irreparable harm to the Airlines and granting it would cause some prejudice to the ALAEA and its members, and while the position in which the Airlines find themselves is largely of their own making, it seems to me that the Airlines do fall over the line.
81 Rightly or wrongly, it seems that the Airlines misapprehended the nature of the ALAEA's case until it was spelled out in the written submissions filed on 27 April 2020. Perhaps, as Ms Saunders argued, it should have been apparent to them well before then.
82 But if the proceeding in the Commission were allowed to take its course, considerable expense may be unnecessarily incurred. The jurisdictional question should be resolved first and it is preferable that it be determined finally by the Court. That will either dispose of the dispute completely or in part and will be more efficient, since, whatever the outcome, the prospect of an application for judicial review is probably inevitable. The prejudice to the ALAEA and its members is addressed by the Airlines' offer, through its counsel, of the usual undertaking as to damages.
83 Moreover, on balance, the interests of justice favour the determination in this Court of both jurisdiction and the stoppage and causation issues raised by the application for declaratory relief.
84 The same issue arose in Teys where the circumstances were very similar. In that case, as in this, the union brought proceedings in the Commission arising out of a dispute about the proper construction of a clause in an enterprise agreement under the terms of the dispute resolution clause in the agreement. If the dispute were resolved in the union's favour, in all likelihood there would have been an underpayment of employee entitlements. In that case, as in this, the Commission issued directions regarding the filing and exchange of submissions and evidence and listed the matter for hearing. Eight days before the scheduled hearing date, the employer filed an originating application in this Court seeking declaratory relief and an interlocutory injunction prohibiting the Commission from taking any further steps to determine the dispute until such time as this Court determines. The employer's solicitors wrote to the Commission asking for the directions to be vacated and the hearing to be adjourned pending the determination of the application in the Court. The employer also raised a jurisdictional challenge on the ground that the requisite preliminary steps to resolve the dispute had not been taken. In addition, the employer contended that the dispute was not "a dispute about the matter or matters arising under [the enterprise agreement]", within the opening words of the dispute resolution clause. In that case, as in this, the Commission rejected the employer's application that the hearing be vacated.
85 Bromberg J was persuaded that the interests of justice favoured the determination of the Court action first. His Honour did so for six reasons. Many of those reasons apply equally here.
86 First, this Court's specialist function is the determination of controversies concerning existing rights and liabilities, including under the FW Act. In contrast, his Honour said, that is not the traditional function of the Commission. His Honour explained:
True it is that the FWC has been given some ability to address rights and liabilities through its capacity as a private arbitrator, but that is not its specialist function. I recognise that the FWC does deal with the interpretation of enterprise agreements and their consistency with provisions of the Act. But, that is different to the final determination of the legal rights of the parties under the FW Act, that being the specialist function of this Court.
87 Second, the Commission is an inferior tribunal and would be assisted by the reasons for judgment of a superior court of record.
88 Third, the dispute was "not without difficulty". It raised complex legal issues concerning the interpretation of the scheme under the FW Act for the making of enterprise agreements and their variation, which deserve the attention of a superior court.
89 Fourth, that is especially so where the issues raised are of general importance, as his Honour considered them to be.
90 Fifth, if the substantive question continues to determination in private arbitration and in this Court, there is the potential for inconsistent answers. An appeal to the Full Bench could only be brought if permission was granted, in the circumstances of that case. There is no right of appeal to a court. And it has been held that constitutional writs will not go to the Commission in its capacity as a private arbitrator.
91 Sixth, there is the potential for delay. The Court can move quickly to determine the substantive question and the delay would not be great. The factual issues are limited.
92 While there are obvious parallels between this case and Teys, there are also some important differences.
93 First, as the ALAEA submitted, the decision in Teys involved a pure question of interpretation. Here, there are mixed questions of fact and law.
94 Second, if the jurisdictional objections do not prevail, the dispute will not end in this Court as the useful employment issue would remain to be determined, whereas proceeding in the Commission would resolve the entire dispute through a binding arbitral award: Energy Australia Yallourn Pty Ltd v Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (2018) 264 FCR 342.
95 Third, contrary to the Airlines' bare assertion, the dispute over the lawfulness of the stand downs does not appear to raise complex legal issues. Stand-down clauses have a long history. Although stand down is not included in the list of matters that may be included in a modern award (FW Act, s 139), it was an allowable award matter under the Workplace Relations Act 1996 (Cth). The learned authors of the 8th edition of Macken's Law of Employment point out at [7.100] that the typical award clause allowing stand down provided that an employer may deduct payment for any day an employee cannot be usefully employed for various reasons including "any stoppage of work by any cause for which the employer cannot reasonably be held responsible". The Airlines claimed that was no authority "going back in the past or more recent that helps or sets out the law with regard to stoppage of work or causation...". Yet, the ALAEA discussed the history and referred to some of the case law in its written submissions to the Commission, which were annexed to Mr Smith's affidavit and to which it referred in its written submissions to this Court. One of those authorities is from the highest court in the land and is nearly a hundred years old: Pickard v John Heine & Son Limited (1924) 35 CLR 1.
96 Fourth, both Agreements provide for the resolution of disputes by private arbitration.
97 On the other hand, the fact that each of the Agreements provides for the resolution of disputes by private arbitration does not preclude the parties from invoking the jurisdiction of the Court in an appropriate case: TCL Air Conditioner (Zhongshan) Co Ltd v Judges of the Federal Court of Australia (2013) 251 CLR 533 at [76]; Teys at [42]. In any case, there is express provision for it in the Qantas Agreement (cl 6.1.3).
98 More relevantly, the issues the ALAEA raises in the Commission are of general importance and their resolution has potentially wide ramifications, well beyond the affected LAMEs, indeed, well beyond the parties.
99 The evidence indicates that the Airlines have stood down around 20,000 employees. Numerous other businesses have stood down employees in the wake of the current pandemic and the Government's response to it. While there is no evidence about the stand-down clauses in any other enterprise agreement, it is more than likely they are similar in terms to the clauses in the Qantas and Jetstar Agreements. As the Airlines submitted, most stand-down provisions in enterprise agreements have common historical roots and use common language. The issues the ALAEA raises also bear on the interpretation of s 524(1)(c) of the FW Act, which relevantly provides that "[a]n employer may … stand down an employee during a period in which the employee cannot usefully be employed because of … a stoppage of work for any cause for which the employer cannot reasonably be held responsible". It is in the interests of justice that questions of such general and widespread application and importance be determined by a superior court and not left to private arbitration.
100 Both the costs of this proceeding and the prospective delay can be mitigated if the parties and their lawyers are sensible and conduct themselves in accordance with their obligations under s 37N of the Federal Court of Australia Act 1976 (Cth). Amongst other things, they should consider agreeing on the facts and, if necessary, serving notices to admit facts.
101 It is highly desirable that the jurisdictional question be determined first and to facilitate that course I propose to make an order to that effect. I will also order that the hearing of that question be expedited.