Qantas has lost its high court bid to overturn a ruling that it illegally outsourced 1,700 ground handler jobs during the pandemic. The unanimous decision on Wednesday exposes the airline to a substantial compensation bill for laying off staff at 10 airports in November 2020.
The Transport Workers' Union (TWU) national secretary, Michael Kaine, said the union would now seek “significant” compensation and penalties in the federal court for what he called the “largest sacking found to be illegal” in Australian history. In July 2021, the federal court found that Qantas's outsourcing was partly driven by a desire to avoid industrial action, breaching the Fair Work Act.
The high court rejected Qantas's argument that it had not taken unlawful “adverse action” because workers did not yet have the right to take industrial action when they were sacked. The majority judgment stated that “no such temporal confinement appears” in the law.
Kaine called for a public apology from Qantas and for chairman Richard Goyder and the entire board to be replaced, including a worker representative. He also urged the board to strip former CEO Alan Joyce of his bonuses. Qantas said it “acknowledges and accepts” the decision and apologised for the personal impact on those affected.
The airline had argued the outsourcing was a necessary financial measure to save $100 million annually. However, the TWU and the Australian Council of Trade Unions welcomed the verdict, with ACTU secretary Sally McManus noting that the “court of public opinion” had also turned against Qantas.
