The High Court of Australia has unanimously upheld a Federal Court ruling that Qantas illegally outsourced 1,700 ground handler jobs at 10 airports in November 2020.
The ruling exposes the airline to a substantial compensation bill and is a significant victory for the Transport Workers Union (TWU), which was backed by an intervention from Workplace Relations Minister Tony Burke.
TWU's national secretary Michael Kain hailed the judgement as historic. "Qantas workers have made history today," Kaine said. "It has been three years and 20 days since Alan Joyce first announced the decision to outsource these workers and they have not stopped fighting for a moment to ensure justice was served."
TWU calls to overhaul board
The high court decision adds to Qantas's mounting woes, including consumer complaints that have surged by 70% in 2022 due to high rates of cancellations, delays and lost baggage. The union responded by demanding a public apology from Qantas and a complete overhaul of its board, led by chairman Richard Goyder.
“The Joyce regime has been toppled but the airline cannot achieve the reset necessary for its survival under the same board that resided over the largest case of illegal sackings in Australian corporate history. Richard Goyder cannot make it through another day as chair,” Kaine said.
In their judgement, the high court justices said that although Qantas had "sound commercial reasons for the outsourcing decision", it was also an attempt "to prevent the affected employees from exercising workplace rights".
This ruling intensifies the scrutiny on Qantas, which is already facing a class action for failing to refund flight credits accrued during the pandemic and allegations of hoarding slots at major airports, with the competition regulator seeking penalties of $600 million.
In submissions to the High Court, the TWU had warned that overturning the Federal Court’s decision would have led to "uncertainty" about workplace rights and weakened protections against other forms of discrimination.
Qantas had argued that the outsourcing was a financially necessary step, aiming to save the airline $100 million annually and reduce future expenses on ground handling equipment.