In a landmark decision, the High Court has backed prior judgments by the Federal Court on Qantas’ contentious decision to outsource its entire ground handling operation back in 2020.
The origination of this decision traces back to the dire straits the airline industry, including Qantas, found itself in during August 2020. With international borders sealed shut, stringent lockdowns enforced worldwide, and the absence of a COVID-19 vaccine, the airline foresaw a prolonged crisis. This impending turmoil led Qantas to make the drastic decision to outsource, aiming to bolster its resilience against the unpredictable tides of the pandemic.
However, the journey to this verdict was not a straightforward one. While the Federal Court acknowledged the genuine commercial motives behind the move, it did not dismiss the possibility that Qantas might have had an ulterior motive. Suspicions arose that the airline may have been aiming to sidestep future industrial action, and this became a focal point of contention.
The High Court’s recent decision resonates with this perspective, implying that while there were valid reasons for the outsourcing, there might have been an unlawful motive lurking beneath the surface.
While the past rulings have negated the possibility of the airline reinstating its employees, the Federal Court’s next step will be to determine the penalties Qantas will face for this breach. Additionally, deliberations on compensation for the affected employees are underway, factoring in the redundancy payments they have already received.
From its end, Qantas has consistently expressed its remorse over the repercussions of its decision on its dedicated workforce. The airline stated, “From the outset, our profound regret for the personal ramifications of the outsourcing has been unambiguous, and we unreservedly apologize to all impacted.”
Written by: Bidget Gomez
