Virgin Australia has filed an explosive defence to a bullying complaint by former chief pilot Michael Fitzgerald, claiming he only took legal action when his demand for almost $1m to “go quietly” was rejected. Mr Fitzgerald lodged an unfair dismissal complaint against Virgin Australia in April, shortly after he was terminated following an extended period of medical and personal leave.
He claimed he was “discriminated against for mental illness and injury, caused by the conduct of Ms Hrdlicka”,
alleging she spoke down to him in group settings, and blamed him when pilots rejected a new enterprise agreement.
In its defence filed in the Federal Circuit Court on Thursday, Virgin Australia denied any wrongdoing by Ms Hrdlicka and said Mr Fitzgerald raised the prospect of redundancy after three months of medical leave between July and October 2021.
After seeking advice, chief operating officer Stuart Aggs told him a redundancy was not available but Mr Fitzgerald could exit on his current salary terms.
“No allegation was made at that time that Mr Fitzgerald had been bullied at work, and no further information was provided regarding his medical condition,” the defence states.
Two weeks later, he was informed of his entitlement to 12-weeks pay, or $86,148, if he wished to resign subject to him signing a deed of release.
In response to the offer, Mr Fitzgerald’s barrister Chris Watters sent a letter enclosing a demand for $925,000 plus other benefits including gold status Virgin lounge access, staff travel and related in-air benefits.
Virgin Australia reinstated its previous offer, prompting Mr Watters to send another letter requesting a severance payment of $769,700.
“Mr Fitzgerald’s preference is not to engage in complex, expensive and protracted litigation,” said Mr Watters’ letter.
Sign up“Mr Fitzgerald is prepared to depart the company quietly, and on good terms, subject to payment of a settlement sum of $769,700 by way of an ex-gratia payment (that is not taxable) to be paid to Mr Fitzgerald’s bank account.”
According to Virgin Australia’s defence, the demand was rejected on December 17, and on December 22 Mr Fitzgerald filed an application for a “stop bullying order” in the Fair Work Commission.
“This was the first occasion on which Mr Fitzgerald had ever raised any allegations that he had been bullied at work,” said the defence.
His application was set down for a conference in the commission on March 1, 2022, and in the meantime Mr Fitzgerald attended two independent medical assessments at Virgin’s request.
On the morning of March 1, Mr Aggs made the decision to terminate his position, based on his receipt of the medical reports indicating he was “permanently unfit for work”.
“No part of Mr Aggs’ reasons for dismissing Mr Fitzgerald, were because he made an application for stop bullying orders,” said the defence.
Virgin Australia denied other claims made by Mr Fitzgerald regarding his treatment by Ms Hrdlicka, including an allegation she referred to him as “another one of the Ansett old boys’ club”.
The defence also denied that Ms Hrdlicka blamed him when pilots voted down a new enterprise agreement, or accused him of “failing to rally the troops”.
The matter has been set down for mediation on November 15.