Free hotel breakfast stoush: Air NZ union group vows to appeal ERA decision

A union group representing several hundred Air NZ flight attendants has lost a dispute over free hotel breakfasts, but vowed to appeal. Photo / 123RF

• An Air New Zealand union group representing flight attendants argued its employer breached an agreement by falling short of providing free hotel breakfasts.
• The Employment Relations Authority ruled in favour of the airline, which had denied there was a breach.
• The union group said they were “disappointed” with the decision and “will appeal”.

A union group representing hundreds of Air New Zealand flight attendants plans to appeal a tribunal decision that ruled in favour of the airline regarding a dispute over free hotel breakfasts.

Air New Zealand was accused of breaching a Strategic Partnership Memorandum of Understanding (SPMoU) - an agreement it has had with the member-operated union Flight Attendants’ Association of New Zealand (FAANZ) since it was formed in 2020 - as well as its Collective Agreement and other obligations.

The union, comprising more than 840 members, argued at a hearing on May 15 with the Employment Relations Authority the SPMoU meant the airline agreed to provide free-of-charge (FOC) breakfasts exclusively to its members when they stayed at hotels while working on the wide-body B787 and B777 aircraft - and that they had been doing so for more than a year.

FAANZ argued Air NZ was now only providing free breakfasts at some hotels and extending the benefit to E tū - another union representing flight attendants with around 600 members - which it considered a breach of its agreement.

Air NZ successfully challenged the claim and denied they had formalised FOC breakfasts into an agreement. The ERA ultimately agreed with the national carrier, ruling in its favour on July 29.

According to the ERA report on the determination, the airline said “free-of-charge” was intended to mean at no cost to the carrier and union members, and that breakfasts were later given to all cabin crew staff irrespective of union membership “as a matter of fair treatment between all Air NZ flight attendants”.

President of FAANZ and inflight service manager Craig Featherby told the Herald the union was disappointed with the decision and intended to appeal.

“While we respect the authority’s decision, it was disappointing that key individuals from the company who were involved in the 2020 Collective Agreement bargain and decision to offer the free breakfast were not present in the room the day of the hearing,” Featherby said in a statement to the Herald.

“We intend to appeal and lodge a new statement of claim.”

The union president also revealed why fighting for FOC breakfasts was important to members.

“While we welcome and acknowledge Air NZ is completing an allowance review, this has taken over a year and crew are really feeling the increased cost of items overseas due to differing levels of inflation at overseas destinations,” he said.

He continued: “The FOC breakfast helped [the] crew to be in a position ... to have more choice on where to eat for lunch and dinner.”

Featherby also dismissed the idea that the case was FAANZ rivaling E tū, saying it was “never about union versus union”.

He claimed that Air NZ has two groups of cabin crew on the same fleet, with one receiving “significantly higher allowances” than the other - the latter including FAANZ and some E tū members.

“Until the business recognises that crew should be treated [equally] and fairly with other crew who fly on the same fleet, then we will continue to push for improved employment conditions, salary and allowance increases regardless of what union an individual is with,” he explained in the statement.

“We welcome collective talks with the three unions representing flight attendants and the company to discuss these matters,” Featherby added.

In response to the union, Air NZ cabin crew general manager Viv Vincent said in a written statement to the Herald: “Air New Zealand deeply values the contribution of all of its people and believes the allowances provided to cabin crew to cover meals and incidentals are reasonable and appropriate.”

The ERA report stated the airline decided to continue providing free breakfasts to cabin crew at 10 existing locations while it reviews its allowance structure.