Egner David Parks & Ors v Cathay Pacific Airways Limited & Anor

 dismissed all the claims brought by the Plaintiffs, who were pilots and members of the aircrew trade union, against their employers Cathay Pacific and its subsidiary New Zealand Basing Limited.

The case concerned a dispute arising out of certain provisions in the Plaintiffs’ employment contracts, which provided for “Bypass Pay” (“

”). BPP is paid by Cathay to pilots in order to compensate them for a delay in their promotion due to Cathay retaining the next higher ranked pilot beyond the normal retirement age (then at 55). Thus, Command BPP is paid to the next most senior first officer suitable for promotion, if Cathay retains any Captain beyond the retirement age.

The Plaintiffs claimed that (i) their Command BPP had been delayed; (ii) their BPP should have included annual salary increments; (iii) their promotion to Captain was delayed because of the recruitment of direct entry first officers and freighter-only pilots from other airlines; and (iv) Cathay failed to adhere to its seniority list in offering command training and consequent promotion.

The Court rejected the Plaintiffs’ submission that employment contracts should be construed in a manner which represents a reasonable balance between the interests of employer and employee, and that an interpretation which promotes employees’ rights should be preferred. The Judge considered that the CFA’s judgment in 

Blakeney-Williams v Cathay Pacific Airways Limited 

(2012) 15 HKCFAR 261 did not stand for any such proposition. Rather, the proper approach in construing an employment contract is to apply the conventional principles of contractual interpretation, taking into account, as part of the context, the employment relationship.

Applying those principles, the Court held that on a true construction of the employment contracts, none of the Plaintiffs’ claims could succeed.

, instructed by Mayer Brown, acted for the 1

 Defendants, Cathay Pacific Airways Limited and New Zealand Basing Limited.

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High Court Dismisses Employment Claims by Union Pilots Against Cathay Pacific After 3-Week Trial

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