CAE TRAINING BONDS DISPUTE
The AFAP and CAE engagement since our correspondence in January 2024 about Training Bonds (seeking a commitment to cease seeking repayment of unlawful bonds) has not resolved the Training Bonds Dispute. Essentially, CAE seeking to apply training bonds to a broader amount of training than the Award allows.
Dispute Resolution
CAE sought an MOU (Memorandum of Understanding) agreement between CAE and the AFAP to continue training bonds for specific training excluded from the Award. The AFAP disagreed to progress an MOU, due to legally that no employer, employee (or representative such as AFAP) can contract out (or sign away your civil rights) that are in the form of a safety net conditions of the Air Pilots Award 2020.
The AFAP offered in late February 2024, to work with CAE to address concerns about retention strategies, the same object as a return of service in a training bond. CAE did not re-engage with the AFAP on this, and stated in an email on 13 March 2024 stating they are continuing with the training bonds as is. The AFAP however are not getting consistent communication and action from CAE - so all matters from CAE must now on be in writing.
The AFAP understand that CAE has not continued the bonds, and instead held meetings with the pilot group about the training bond, a matter regarding a legal instrument – unfortunately voting on whether or not you like conditions in a legal document is not an exercise that has any merit.
Additionally, the AFAP are highly concerned that CAE had promoted prior to the vote it would cease upgrade training- even though upgrades form part of the employment relationship in the Training and Checking Manual.
What is the Dispute About?
To date, CAE has not provided any details of why they disagree with the AFAP position, so we have had to write and asked them to provide this.
In practice, CAE has been paying for the training of upgrading of pilots and undertake training as per the Training and Checking Manual. Pilots that left during a bond period may have on paper had bond to repay, but the AFAP review demonstrates that bond repayments to CAE have rarely occurred. Thereby, right now nothing much has changed for CAE, they can continue paying for training with or without a bond. Also, it is important to note we are talking about several hundred, or a couple thousand dollars here - very small bonds – this dispute commercially is not about hundreds of thousands of dollars, or millions of dollars, etc.
Therefore, an ongoing escalation by CAE of the dispute doesn’t make much sense. There is no engagement about retention strategies (object of a bond), due to CAE being smaller bonds (not higher costs of type/class ratings etc) there is little identified commercial impact on whether bonds are paid or not, there is little evidence if any bonds (low or higher value) are effective to prevent movement in the industry anyway, and this dispute may cost more than dozens and dozens of CAE bonds if it continues in to the Fair Work Commission and/or courts as it currently appears.
AFAP Correspondence to CAE
The conduct of CAE to cancel existing training, cease implementing new training, and what may be misrepresentation of workplace rights are all concerning matters that create new industrial and legal issues for CAE. The AFAP has formally placed CAE notice how this conduct and actions relate to employee protections in the Fair Work Act.
The AFAP correspondence has reminded CAE about all pilot’s employed at CAE have workplace rights, including that you have the
- right to be represented by the AFAP,
- the right to raise, and/or be party to a dispute under the Award, an industrial instrument in accordance with the FW Act,
- entitled to consultation regarding changes to your workplace conditions (where applicable),
- entitled to upgrading and training in accordance with workplace instruments, including the CAE Training and Checking Manual,
- protections from coercion, undue influence or pressure and misrepresentation of their rights in accordance with the FW Act.
The AFAP are seeking CAE address the dispute by responding appropriately as well as address new issues including a response to the following by close of business Friday 5 April 2024.
- CAE confirm it will reinstate upgrades and training in accordance with the workplace instrument, the CAE Training and Checking Manual.
- CAE will reconvene any agreed training cancelled in relation to the dispute, or alternately to pay compensation to relative pilots to complete agreed training (equal to the amount to complete training elsewhere). NB The AFAP position is that the bond repayment that is not enforceable, however the contractual agreement of the training remains in place.
- CAE will appropriately engage in the dispute by providing the AFAP written reasons regarding their position in the dispute, additionally outlining the training activities it views as covered by the Award, and the corresponding reasoning.
- CAE agrees to cease the alleged coercion, undue influence and/or misrepresentation of matters relating to the dispute, and workplace instruments (including the CAE Training and Checking manual).
The AFAP will be looking to set up discussions with members and the pilot group in the near future, pending the CAE response and appropriate next steps regarding these matters.
If you require assistance or have any queries, please do not hesitate to reach out for assistance to AFAP on Jason@afap.org.au or phone (03) 9928 5737 to discuss.
Yours Sincerely,
The AFAP Industrial Team