Qantas Faces Record Fine Over Illegal Outsourcing of 1,800 Jobs During COVID Pandemic

Introduction
Qantas is back in court as it awaits the final verdict over its illegal outsourcing of 1,800 ground handling jobs during the height of the COVID-19 pandemic. The airline’s actions, deemed unlawful by multiple courts, have sparked a four-and-a-half-year legal battle with the Transport Workers’ Union (TWU). The outcome of this case could result in a record fine, with the TWU demanding the maximum penalty of $121 million to hold Qantas accountable for its breach of the Fair Work Act.

The case highlights the significant impact of corporate decisions on workers, particularly during times of crisis, and underscores the importance of labor protections in safeguarding employee rights.

Details of the Case
In August 2020, Qantas announced plans to outsource 1,800 ground handling roles, citing financial pressures caused by the pandemic. However, Justice Michael Lee ruled in 2021 that the airline’s decision was primarily motivated by an intent to prevent employees from engaging in protected industrial action once travel resumed. This ruling found Qantas in breach of the Fair Work Act.

Key developments include:

• The Full Court of the Federal Court unanimously upheld Justice Lee’s original ruling after Qantas appealed.
• The High Court also sided with the TWU, confirming the outsourcing was unlawful.
• In October 2023, Qantas was ordered to pay $120 million in compensation to affected workers for economic loss, pain, and suffering.

The current hearing at Sydney’s Federal Court aims to determine the final fine, with lawyers for both Qantas and the TWU presenting their closing arguments.

Union Demands and Worker Impact
The TWU has called for the maximum penalty of $121 million, emphasizing the need to send a strong message to Qantas and other companies about the consequences of violating labor laws. TWU National Secretary Michael Kaine stated:

• “We have to send a very clear, strong signal to Qantas and every other company in Australia that this can never ever happen again, to any Australian worker.”
• Kaine described the legal battle as long overdue, but necessary to ensure accountability for the harm caused to workers and their families.

For former Qantas employees, the outsourcing decision had devastating personal and financial consequences. One worker expressed the lasting impact: “It’s hurt a lot of people, and they have no idea what it’s done to us.”

Qantas CEO’s Response
Qantas CEO Vanessa Hudson has publicly apologized for the airline’s actions, acknowledging the harm caused to workers and their families. Despite this, the airline has faced widespread criticism for its handling of the situation, with many calling for systemic changes to prevent similar incidents in the future.

The national carrier has already been ordered to pay $120 million in compensation, a decision made by Justice Lee in October 2023. This compensation aims to address the economic losses and emotional toll experienced by unlawfully outsourced workers.

Broader Implications for Labor Laws
This case serves as a critical reminder of the importance of upholding labor protections, particularly during crises when workers are most vulnerable. Key takeaways include:

• The need for stricter enforcement of labor laws to prevent companies from exploiting loopholes.
• The role of unions in advocating for workers’ rights and holding corporations accountable.
• The broader societal impact of outsourcing decisions, which can lead to job losses, financial hardship, and mental health challenges for affected employees.

Justice Lee is expected to deliver his final verdict after the three-day hearing concludes, marking the end of a protracted legal battle.

Facility Details
The case centers on Qantas’ operations during the pandemic, particularly its decision to outsource ground handling roles. Ground handling jobs involve critical tasks such as baggage handling, aircraft cleaning, and passenger assistance, making them essential to the airline’s operations.