SYDNEY – In a recent ruling, Australia’s highest court dismissed an appeal from Qantas Airways over its decision to outsource ground-handling operations during the Covid-19 pandemic. The court sided with the Transport Workers Union, which argued that the move violated the Fair Work Act.
According to the Transport Workers Union, lower court decisions found that Qantas breached the Fair Work Act by outsourcing the workers and preventing them from exercising their industrial rights, such as collective bargaining and protected industrial action.
Approximately 1,700 workers were affected by the decision, prompting the union to call on Qantas’ new chief executive, Vanessa Hudson, to issue a public apology.
“Qantas workers have made history today,” said Michael Kaine, the national secretary of the Transport Workers Union. “They have not stopped fighting for a moment to ensure justice was served.”
Qantas responded to the ruling by acknowledging and accepting the decision of the High Court. The airline explained that the decision to outsource the workers was made as part of its business restructuring efforts during the pandemic.
“We deeply regret the personal impact the outsourcing decision had on all those affected, and we sincerely apologize for that,” Qantas said in a statement.
Although the lower court ruled against reinstating the workers, Qantas will now face penalties for the breach and consider compensation for the affected employees.
According to Qantas, while the lower court recognized valid commercial reasons for outsourcing, it did not rule out that Qantas may have had an unlawful motive – avoiding future industrial action. The High Court’s ruling effectively upholds that view, the airline stated.
Qantas is currently working on repairing its reputation following allegations of dishonesty with customers and criticism over high airfares. The airline’s former CEO, Alan Joyce, recently stepped down early.