JUSTICE SERVED!!
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The Litmus Test for what the Chairman’s Lounge is really about will be if QF keep High Court Judges on the books. If QF come out in the next few weeks and remove the High Court from the lounge then that will speak volumes about what is really going on.
Precisely. Just adding to all the bad news - there is probably no good news that can counteract all the bad!
Ie, if QF had done nothing, their in-house staff would have cost $100M. But they punted them and now outsourcing only costs $50M, ergo, they should have to pay an annual fine of $50M, to dissuade a repeat and such a once-off fine being viewed as "just the cost of doing business".
Why? Because sure they can outsource, and if its' found to be legal, then yep, they will save that $50M, but if it's found to be illegal, then there's no savings to be had at all, so why run the risk?
Ain't gonna happen though, and unless the fine is in the billions of dollars, then there's no disincentive for it to happen again, save bad PR...
I think Qantas is now left pondering who owns who. They will be f*cked if they start cutting privileges because court rulings don’t go their way.
Thread Starter
[img]data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7[/img]
Robyn IronsideAviation Writer
@ironsider
4 min read
September 13, 2023 - 2:18PMThe Australian Business Network
Katter’s Australian Party MP Bob Katter says he will be moving for an inquiry into the Qantas board. “These people that are the slithering Sydney suits that control the share market are corporations in Australia,” Mr Katter told Sky News Australia. He said both the BHP and Qantas boards have been known to appoint CEOs who “are not Australian”. “I have a particular interest here because amongst the first two or three hundred investors in Qantas was my family. “We lost a lot of money, but we didn’t lose money – we invested that money in providing a service for people of outback Australia.”Qantas could face a penalty of more than $200m for the illegal outsourcing of ground handling workers, after the High Court found the decision was motivated by a desire to prevent future industrial action.
The case will now go back to the Federal Court to determine an appropriate penalty after the High Court upheld two previous rulings in favour of the Transport Workers Union.
In a momentous decision, the High Court dismissed Qantas’ appeal, and found the airline was motivated by prohibited reasons in the mass sacking — namely a desire to prevent industrial action when a new enterprise agreement was negotiated.
In response to the ruling, Qantas said it acknowledged and accepted the High Court’s decision to uphold two prior rulings by the Federal Court.
“As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise for that,” said a statement.
“A prior decision by the Federal Court has ruled out reinstatement of workers but it will now consider penalties for the breach and compensation for relevant employees which will factor in redundancy payments already made by Qantas.”
The TWU had argued Qantas used the pandemic to enact a years-old plan to dismantle the heavily unionised workforce consisting of baggage handlers, tug drivers and cleaners.
Qantas claimed it was purely motivated by “commercial reasons” with the outsourcing intended to save the airline $100m a year in labour costs, and another $80m over five years in equipment and maintenance.
TWU national secretary Michael Kaine hailed the decision as a “massive result” for workers and repeated calls for the Qantas board to go.
“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,” said Mr Kaine.
“The final act of this board should be to strip Alan Joyce of his bonuses and follow him out the door.”
He said it was impossible for Qantas to start afresh with “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,” Mr Kaine said.
“Qantas needs a fresh start. A worker voice on the board would make a significant difference and send the right signal that Qantas is serious about getting back on track.”
Mr Kaine also called on new chief executive Vanessa Hudson to publicly apologise to the sacked workers, and commit to a “non-adversarial to Federal Court hearings on compensation and penalties”.
The unanimous judgment rejected Qantas’s argument that it could not deny workers their rights to protected industrial action, when they did not have those rights at the time of the outsourcing.
“In short, a person who takes adverse action against another person for a substantial and operative reason of preventing the exercise of a workplace right by the other person contravenes (the Fair Work Act), regardless of whether that other person has the relevant workplace right at the time the adverse action is taken,” said the ruling.
“Qantas did not avoid the operation of (the Fair Work Act) in relation to its adverse action by taking the action prior to the existence of the workplace rights, the exercise of which Qantas sought to thwart.”
In 1996, you could fly from Sydney to London first class return for about 200,000 Qantas Frequent Flyer points – now you’ll need more than twice that.
Maurice Blackburn Lawyers principal Josh Bornstein indicated a penalty in the vicinity of $100m would be sought by the TWU plus compensation for the workers which could amount to another $100m plus.
He said Qantas had profited by dragging out the case for years.
“Qantas argued in the High Court that it should be permitted to sack workers merely because they wanted to bargain with the airline. Had the appeal succeeded, it would have greenlighted the further de-unionisation of the labour market by big business,” Mr Bornstein said.
“Qantas has fought this case every step of the way. For three long years, the sacked workers have waited for justice. During that time, the company has profited significantly from its illegal conduct”.
Multinational companies including Swissport, Menzies and dnata were contracted by Qantas to do the work in the place of its own workforce.
As travel ramped up, the outsourcing was blamed for multiple problems for customers, including higher rates of mishandled and damaged luggage, long waits at baggage carousels and minor collisions between aircraft and vehicles on the tarmac.
Other unions joined the TWU in hailing the High Court decision.
The Flight Attendants Association of Australia said it was a clear victory for workers, and the Australian Services Union said the decision was “another nail in the coffin for the manner of business undertaken by Qantas under previous management”.
“Qantas has been in the news for all the wrong reasons and new management has a serious task ahead of it to rebuild the trust of workers and the travelling public,” said ASU assistant national secretary Emaline Gaske.
“Looking ahead, the ASU will collaborate with new management to put an end to years of outsourcing and relentless cost-cutting.”
Qantas had been sweating on the decision after weeks of negative publicity and public outrage over a mountain of unused travel credits, high airfares and big executive bonuses.
Qantas drafts in ‘transformation’ specialist
Qantas chair must clear out the board after Joyce woes
The company is also facing a lawsuit by the Australian Competition and Consumer Commission, alleging Qantas sold tickets on already cancelled flights in early to mid-2022.
The growing crises enveloping Qantas resulted in former CEO Alan Joyce bringing forward his retirement by two-months last week to “help accelerate the renewal process”.
Ms Hudson has kept a low profile since taking over the top job, after directing her executive team to fix problems and focus on customers
Qantas faces $200m-plus penalty for illegal outsourcing
Qantas has apologised to workers whose jobs were illegally outsourced during the pandemic, after a High Court ruling went against the airline.Robyn IronsideAviation Writer@ironsider
4 min read
September 13, 2023 - 2:18PMThe Australian Business Network
Katter’s Australian Party MP Bob Katter says he will be moving for an inquiry into the Qantas board. “These people that are the slithering Sydney suits that control the share market are corporations in Australia,” Mr Katter told Sky News Australia. He said both the BHP and Qantas boards have been known to appoint CEOs who “are not Australian”. “I have a particular interest here because amongst the first two or three hundred investors in Qantas was my family. “We lost a lot of money, but we didn’t lose money – we invested that money in providing a service for people of outback Australia.”Qantas could face a penalty of more than $200m for the illegal outsourcing of ground handling workers, after the High Court found the decision was motivated by a desire to prevent future industrial action.
The case will now go back to the Federal Court to determine an appropriate penalty after the High Court upheld two previous rulings in favour of the Transport Workers Union.
In a momentous decision, the High Court dismissed Qantas’ appeal, and found the airline was motivated by prohibited reasons in the mass sacking — namely a desire to prevent industrial action when a new enterprise agreement was negotiated.
In response to the ruling, Qantas said it acknowledged and accepted the High Court’s decision to uphold two prior rulings by the Federal Court.
“As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise for that,” said a statement.
“A prior decision by the Federal Court has ruled out reinstatement of workers but it will now consider penalties for the breach and compensation for relevant employees which will factor in redundancy payments already made by Qantas.”
The TWU had argued Qantas used the pandemic to enact a years-old plan to dismantle the heavily unionised workforce consisting of baggage handlers, tug drivers and cleaners.
Qantas claimed it was purely motivated by “commercial reasons” with the outsourcing intended to save the airline $100m a year in labour costs, and another $80m over five years in equipment and maintenance.
TWU national secretary Michael Kaine hailed the decision as a “massive result” for workers and repeated calls for the Qantas board to go.
“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,” said Mr Kaine.
“The final act of this board should be to strip Alan Joyce of his bonuses and follow him out the door.”
He said it was impossible for Qantas to start afresh with “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,” Mr Kaine said.
“Qantas needs a fresh start. A worker voice on the board would make a significant difference and send the right signal that Qantas is serious about getting back on track.”
Mr Kaine also called on new chief executive Vanessa Hudson to publicly apologise to the sacked workers, and commit to a “non-adversarial to Federal Court hearings on compensation and penalties”.
The unanimous judgment rejected Qantas’s argument that it could not deny workers their rights to protected industrial action, when they did not have those rights at the time of the outsourcing.
“In short, a person who takes adverse action against another person for a substantial and operative reason of preventing the exercise of a workplace right by the other person contravenes (the Fair Work Act), regardless of whether that other person has the relevant workplace right at the time the adverse action is taken,” said the ruling.
“Qantas did not avoid the operation of (the Fair Work Act) in relation to its adverse action by taking the action prior to the existence of the workplace rights, the exercise of which Qantas sought to thwart.”
In 1996, you could fly from Sydney to London first class return for about 200,000 Qantas Frequent Flyer points – now you’ll need more than twice that.
Maurice Blackburn Lawyers principal Josh Bornstein indicated a penalty in the vicinity of $100m would be sought by the TWU plus compensation for the workers which could amount to another $100m plus.
He said Qantas had profited by dragging out the case for years.
“Qantas argued in the High Court that it should be permitted to sack workers merely because they wanted to bargain with the airline. Had the appeal succeeded, it would have greenlighted the further de-unionisation of the labour market by big business,” Mr Bornstein said.
“Qantas has fought this case every step of the way. For three long years, the sacked workers have waited for justice. During that time, the company has profited significantly from its illegal conduct”.
Multinational companies including Swissport, Menzies and dnata were contracted by Qantas to do the work in the place of its own workforce.
As travel ramped up, the outsourcing was blamed for multiple problems for customers, including higher rates of mishandled and damaged luggage, long waits at baggage carousels and minor collisions between aircraft and vehicles on the tarmac.
Other unions joined the TWU in hailing the High Court decision.
The Flight Attendants Association of Australia said it was a clear victory for workers, and the Australian Services Union said the decision was “another nail in the coffin for the manner of business undertaken by Qantas under previous management”.
“Qantas has been in the news for all the wrong reasons and new management has a serious task ahead of it to rebuild the trust of workers and the travelling public,” said ASU assistant national secretary Emaline Gaske.
“Looking ahead, the ASU will collaborate with new management to put an end to years of outsourcing and relentless cost-cutting.”
Qantas had been sweating on the decision after weeks of negative publicity and public outrage over a mountain of unused travel credits, high airfares and big executive bonuses.
More Coverage
Qantas drafts in ‘transformation’ specialistQantas chair must clear out the board after Joyce woesThe company is also facing a lawsuit by the Australian Competition and Consumer Commission, alleging Qantas sold tickets on already cancelled flights in early to mid-2022.
The growing crises enveloping Qantas resulted in former CEO Alan Joyce bringing forward his retirement by two-months last week to “help accelerate the renewal process”.
Ms Hudson has kept a low profile since taking over the top job, after directing her executive team to fix problems and focus on customers
What should happen is that the Parliament should legislate to ban any Commonwealth official, judge, member of Parliament, member of the ADF etc from accepting the largesse. And pigs might fly...
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All of this makes me so happy.
MICHAEL SAINSBURY
SEP 13, 2023
30
Give this article
FORMER QANTAS CEO ALAN JOYCE (IMAGE: AAP/DEAN LEWINS)Qantas has today lost its appeal to the High Court for illegally sacking 1,700 baggage handlers, cleaners and ground staff, and calls for a clean-out of the airline’s board have reached fever pitch.
Qantas has now been found guilty by the Federal Court, the Federal Court of Appeals and Australia’s highest court in a devastating unanimous decision by the seven justices in a case brought by the Transport Workers’ Union (TWU). The national carrier is now on the path to paying the multimillion-dollar legal bill on both sides, compensation to workers, and to clawing back bonuses from senior executives.
During the court hearings, Qantas conveniently maintained that the “sole decision-maker” in the matter was domestic and international division CEO Andrew David, who leaves the company this month — but the strategy clearly came from the top of the company.
Qantas chairman Richard Goyder and the entire board must be replaced by new directors, including a worker representative, after the High Court today unanimously upheld two Federal Court verdicts that Qantas illegally outsourced 1,700 workers, the TWU said.
The decision is the latest blow to the airline, already under fire for selling tickets for 8,000 flights it allegedly knew were already cancelled in 2022, and has significantly amplified the already tumultuous start to new CEO Vanessa Hudson’s administration.
“These workers have been put through hell. Their families have been put through hell. Their lives have been dislocated. Some of them forever. Separations. Loss of property. That’s the consequence of this illegal decision. You need to apologise to these workers straightaway. And not just in words, but in actions.”
The decision should see the removal of senior staff and legal advisers from the company, and may well be the final nail in the coffin for Goyder and many of his board members, who backed the strategy. The company has spent millions of shareholder funds fighting the TWU, which has scored a major victory for Qantas staff and Australian workers.
Qantas staff are also hopeful that the decision will see a much-needed clean-out at the company. “Good that this didn’t go Qantas’ way. Pity Joyce wasn’t here to face the fire that he caused. Hopefully some more heads will roll”, one engineer said.
A Qantas pilot said: “The company had no moral compass and would make Gordon Gekko blush.”
Today’s decision will also serve as a wake-up call for corporate Australia. As Josh Bornstein, partner at law firm Maurice Blackburn who ran the TWU case, said: “Had the appeal succeeded, it would have greenlighted the further de-unionisation of the labour market by big business.”
“When companies outsource workers like Qantas, they effectively avoid having to bargain with their labour. Instead, they engage labour hire agencies and dictate to those agencies what they are willing to pay for labour. Outsourcing has been one of the reasons that employees have lost the ability to obtain real wage increases. Qantas engaged in a collective bargaining avoidance scheme and, thankfully, the High Court has recognised that it was illegal.”
The Federal Court found that during the height of the coronavirus pandemic, when most aviation was shut down, Qantas seized on a “vanishing window of opportunity” to get rid of its unionised baggage handlers, sacking the workers when they were deprived of bargaining power.
Qantas counsel Justin Gleeson SC told the High Court at its hearing in May that the airline was “bleeding cash” due to the pandemic. Since then it has posted a profit of almost $2.5 billion for the 2023 financial year.
Qantas received $2.7 billion in taxpayer subsidies throughout the pandemic, $856 million of which was JobKeeper to keep workers employed — the highest amount of JobKeeper paid to any company. Yet, by August 2021, 9,400 employees had left Qantas following redundancies and outsourcing.
“The issue before the High Court was whether s 340(1)(b) of the act prohibited a person from taking adverse action against another person for the purpose of preventing the exercise of a workplace right that might arise in the future. The High Court unanimously held that it did and, in so doing, rejected Qantas’ contention that s 340(1)(b) only proscribed adverse action for the purpose of preventing the exercise of a presently existing workplace right,” the High Court said in a summary of its judgment.
Bornstein said Qantas had profited by dragging out the case for three years. “Qantas argued in the High Court that it should be permitted to sack workers merely because they wanted to bargain with the airline.”
“Qantas has fought this case every step of the way. For three long years, the sacked workers have waited for justice. During that time, the company has profited significantly from its illegal conduct”.
“The case isn’t over. Our legal team will now ask the Federal Court to hear claims for compensation for all adversely impacted workers and then seek a substantial penalty against Qantas,” said Bornstein.
Since the outsourcing, Qantas’ service has nosedived, TWU said, with complaints increasing 70% in 2022 amid high cancellations, delays and lost baggage. Company sources said that the only answer from Qantas’ airport managers, 10 days ago, was to “get Dnata [a ground handling outsourcer] to reduce delays”.
“The decision to outsource the remainder of the airline’s ground handling function was made in August 2020, when borders were closed, lockdowns were in place and no COVID vaccine existed. The likelihood of a years-long crisis led Qantas to restructure its business to improve its ability to survive and ultimately recover,“ Qantas said in a brief statement. “As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise for that.”
“When you decide to fight Qantas, you know you have to throw everything at it … A real David and Goliath struggle, but it shows what workers can achieve when they pull together and join together and stand up for what is right through the union,” ACTU boss Sally McManus said.
Qantas faces three further court challenges: record penalties of $600 million sought by the ACCC for selling alleged cancelled flights, a criminal prosecution from the NSW safety regulator for standing down a health and safety representative during the pandemic, and a class action from angry customers who say they were misled and denied refunds.
Crikey has learned from staff based at Sydney Airport that former CEO Alan Joyce boarded an Emirates flight to Dublin the day he departed the company, accompanied by a security detail so he did not “have to interact with other passengers or onlookers
‘Workers put through hell’: Qantas loses High Court appeal over sacking of 1,700 staff
As one pilot remarked, 'Pity Joyce wasn't here to face the fire that he caused. Hopefully some more heads will roll'.MICHAEL SAINSBURY
SEP 13, 2023
30
Give this article
FORMER QANTAS CEO ALAN JOYCE (IMAGE: AAP/DEAN LEWINS)Qantas has today lost its appeal to the High Court for illegally sacking 1,700 baggage handlers, cleaners and ground staff, and calls for a clean-out of the airline’s board have reached fever pitch. Qantas has now been found guilty by the Federal Court, the Federal Court of Appeals and Australia’s highest court in a devastating unanimous decision by the seven justices in a case brought by the Transport Workers’ Union (TWU). The national carrier is now on the path to paying the multimillion-dollar legal bill on both sides, compensation to workers, and to clawing back bonuses from senior executives.
During the court hearings, Qantas conveniently maintained that the “sole decision-maker” in the matter was domestic and international division CEO Andrew David, who leaves the company this month — but the strategy clearly came from the top of the company.
Qantas chairman Richard Goyder and the entire board must be replaced by new directors, including a worker representative, after the High Court today unanimously upheld two Federal Court verdicts that Qantas illegally outsourced 1,700 workers, the TWU said.
The decision is the latest blow to the airline, already under fire for selling tickets for 8,000 flights it allegedly knew were already cancelled in 2022, and has significantly amplified the already tumultuous start to new CEO Vanessa Hudson’s administration.
Qantas critics for the meat grinder? Airline hires bin Salman’s reputation launderer
Read More“You owe these workers and their families a deep and sincere apology,” TWU national secretary Michael Kaine told Hudson.“These workers have been put through hell. Their families have been put through hell. Their lives have been dislocated. Some of them forever. Separations. Loss of property. That’s the consequence of this illegal decision. You need to apologise to these workers straightaway. And not just in words, but in actions.”
The decision should see the removal of senior staff and legal advisers from the company, and may well be the final nail in the coffin for Goyder and many of his board members, who backed the strategy. The company has spent millions of shareholder funds fighting the TWU, which has scored a major victory for Qantas staff and Australian workers.
Qantas staff are also hopeful that the decision will see a much-needed clean-out at the company. “Good that this didn’t go Qantas’ way. Pity Joyce wasn’t here to face the fire that he caused. Hopefully some more heads will roll”, one engineer said.
A Qantas pilot said: “The company had no moral compass and would make Gordon Gekko blush.”
Today’s decision will also serve as a wake-up call for corporate Australia. As Josh Bornstein, partner at law firm Maurice Blackburn who ran the TWU case, said: “Had the appeal succeeded, it would have greenlighted the further de-unionisation of the labour market by big business.”
“When companies outsource workers like Qantas, they effectively avoid having to bargain with their labour. Instead, they engage labour hire agencies and dictate to those agencies what they are willing to pay for labour. Outsourcing has been one of the reasons that employees have lost the ability to obtain real wage increases. Qantas engaged in a collective bargaining avoidance scheme and, thankfully, the High Court has recognised that it was illegal.”
The Federal Court found that during the height of the coronavirus pandemic, when most aviation was shut down, Qantas seized on a “vanishing window of opportunity” to get rid of its unionised baggage handlers, sacking the workers when they were deprived of bargaining power.
Qantas counsel Justin Gleeson SC told the High Court at its hearing in May that the airline was “bleeding cash” due to the pandemic. Since then it has posted a profit of almost $2.5 billion for the 2023 financial year.
Qantas received $2.7 billion in taxpayer subsidies throughout the pandemic, $856 million of which was JobKeeper to keep workers employed — the highest amount of JobKeeper paid to any company. Yet, by August 2021, 9,400 employees had left Qantas following redundancies and outsourcing.
Richard Goyder’s days as Qantas chairman are numbered — and deservedly so
Read MoreQantas argued it could not have breached employee rights, as employees did not have the right to take protected industrial action at the time of the decision to outsource.“The issue before the High Court was whether s 340(1)(b) of the act prohibited a person from taking adverse action against another person for the purpose of preventing the exercise of a workplace right that might arise in the future. The High Court unanimously held that it did and, in so doing, rejected Qantas’ contention that s 340(1)(b) only proscribed adverse action for the purpose of preventing the exercise of a presently existing workplace right,” the High Court said in a summary of its judgment.
Bornstein said Qantas had profited by dragging out the case for three years. “Qantas argued in the High Court that it should be permitted to sack workers merely because they wanted to bargain with the airline.”
“Qantas has fought this case every step of the way. For three long years, the sacked workers have waited for justice. During that time, the company has profited significantly from its illegal conduct”.
“The case isn’t over. Our legal team will now ask the Federal Court to hear claims for compensation for all adversely impacted workers and then seek a substantial penalty against Qantas,” said Bornstein.
Since the outsourcing, Qantas’ service has nosedived, TWU said, with complaints increasing 70% in 2022 amid high cancellations, delays and lost baggage. Company sources said that the only answer from Qantas’ airport managers, 10 days ago, was to “get Dnata [a ground handling outsourcer] to reduce delays”.
“The decision to outsource the remainder of the airline’s ground handling function was made in August 2020, when borders were closed, lockdowns were in place and no COVID vaccine existed. The likelihood of a years-long crisis led Qantas to restructure its business to improve its ability to survive and ultimately recover,“ Qantas said in a brief statement. “As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise for that.”
“When you decide to fight Qantas, you know you have to throw everything at it … A real David and Goliath struggle, but it shows what workers can achieve when they pull together and join together and stand up for what is right through the union,” ACTU boss Sally McManus said.
Qantas faces three further court challenges: record penalties of $600 million sought by the ACCC for selling alleged cancelled flights, a criminal prosecution from the NSW safety regulator for standing down a health and safety representative during the pandemic, and a class action from angry customers who say they were misled and denied refunds.
Crikey has learned from staff based at Sydney Airport that former CEO Alan Joyce boarded an Emirates flight to Dublin the day he departed the company, accompanied by a security detail so he did not “have to interact with other passengers or onlookers
All of this makes me so happy.
MICHAEL SAINSBURY
SEP 13, 2023
30
Give this article
FORMER QANTAS CEO ALAN JOYCE (IMAGE: AAP/DEAN LEWINS)Qantas has today lost its appeal to the High Court for illegally sacking 1,700 baggage handlers, cleaners and ground staff, and calls for a clean-out of the airline’s board have reached fever pitch.
Qantas has now been found guilty by the Federal Court, the Federal Court of Appeals and Australia’s highest court in a devastating unanimous decision by the seven justices in a case brought by the Transport Workers’ Union (TWU). The national carrier is now on the path to paying the multimillion-dollar legal bill on both sides, compensation to workers, and to clawing back bonuses from senior executives.
During the court hearings, Qantas conveniently maintained that the “sole decision-maker” in the matter was domestic and international division CEO Andrew David, who leaves the company this month — but the strategy clearly came from the top of the company.
Qantas chairman Richard Goyder and the entire board must be replaced by new directors, including a worker representative, after the High Court today unanimously upheld two Federal Court verdicts that Qantas illegally outsourced 1,700 workers, the TWU said.
The decision is the latest blow to the airline, already under fire for selling tickets for 8,000 flights it allegedly knew were already cancelled in 2022, and has significantly amplified the already tumultuous start to new CEO Vanessa Hudson’s administration.
“These workers have been put through hell. Their families have been put through hell. Their lives have been dislocated. Some of them forever. Separations. Loss of property. That’s the consequence of this illegal decision. You need to apologise to these workers straightaway. And not just in words, but in actions.”
The decision should see the removal of senior staff and legal advisers from the company, and may well be the final nail in the coffin for Goyder and many of his board members, who backed the strategy. The company has spent millions of shareholder funds fighting the TWU, which has scored a major victory for Qantas staff and Australian workers.
Qantas staff are also hopeful that the decision will see a much-needed clean-out at the company. “Good that this didn’t go Qantas’ way. Pity Joyce wasn’t here to face the fire that he caused. Hopefully some more heads will roll”, one engineer said.
A Qantas pilot said: “The company had no moral compass and would make Gordon Gekko blush.”
Today’s decision will also serve as a wake-up call for corporate Australia. As Josh Bornstein, partner at law firm Maurice Blackburn who ran the TWU case, said: “Had the appeal succeeded, it would have greenlighted the further de-unionisation of the labour market by big business.”
“When companies outsource workers like Qantas, they effectively avoid having to bargain with their labour. Instead, they engage labour hire agencies and dictate to those agencies what they are willing to pay for labour. Outsourcing has been one of the reasons that employees have lost the ability to obtain real wage increases. Qantas engaged in a collective bargaining avoidance scheme and, thankfully, the High Court has recognised that it was illegal.”
The Federal Court found that during the height of the coronavirus pandemic, when most aviation was shut down, Qantas seized on a “vanishing window of opportunity” to get rid of its unionised baggage handlers, sacking the workers when they were deprived of bargaining power.
Qantas counsel Justin Gleeson SC told the High Court at its hearing in May that the airline was “bleeding cash” due to the pandemic. Since then it has posted a profit of almost $2.5 billion for the 2023 financial year.
Qantas received $2.7 billion in taxpayer subsidies throughout the pandemic, $856 million of which was JobKeeper to keep workers employed — the highest amount of JobKeeper paid to any company. Yet, by August 2021, 9,400 employees had left Qantas following redundancies and outsourcing.
“The issue before the High Court was whether s 340(1)(b) of the act prohibited a person from taking adverse action against another person for the purpose of preventing the exercise of a workplace right that might arise in the future. The High Court unanimously held that it did and, in so doing, rejected Qantas’ contention that s 340(1)(b) only proscribed adverse action for the purpose of preventing the exercise of a presently existing workplace right,” the High Court said in a summary of its judgment.
Bornstein said Qantas had profited by dragging out the case for three years. “Qantas argued in the High Court that it should be permitted to sack workers merely because they wanted to bargain with the airline.”
“Qantas has fought this case every step of the way. For three long years, the sacked workers have waited for justice. During that time, the company has profited significantly from its illegal conduct”.
“The case isn’t over. Our legal team will now ask the Federal Court to hear claims for compensation for all adversely impacted workers and then seek a substantial penalty against Qantas,” said Bornstein.
Since the outsourcing, Qantas’ service has nosedived, TWU said, with complaints increasing 70% in 2022 amid high cancellations, delays and lost baggage. Company sources said that the only answer from Qantas’ airport managers, 10 days ago, was to “get Dnata [a ground handling outsourcer] to reduce delays”.
“The decision to outsource the remainder of the airline’s ground handling function was made in August 2020, when borders were closed, lockdowns were in place and no COVID vaccine existed. The likelihood of a years-long crisis led Qantas to restructure its business to improve its ability to survive and ultimately recover,“ Qantas said in a brief statement. “As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise for that.”
“When you decide to fight Qantas, you know you have to throw everything at it … A real David and Goliath struggle, but it shows what workers can achieve when they pull together and join together and stand up for what is right through the union,” ACTU boss Sally McManus said.
Qantas faces three further court challenges: record penalties of $600 million sought by the ACCC for selling alleged cancelled flights, a criminal prosecution from the NSW safety regulator for standing down a health and safety representative during the pandemic, and a class action from angry customers who say they were misled and denied refunds.
Crikey has learned from staff based at Sydney Airport that former CEO Alan Joyce boarded an Emirates flight to Dublin the day he departed the company, accompanied by a security detail so he did not “have to interact with other passengers or onlookers
‘Workers put through hell’: Qantas loses High Court appeal over sacking of 1,700 staff
As one pilot remarked, 'Pity Joyce wasn't here to face the fire that he caused. Hopefully some more heads will roll'.MICHAEL SAINSBURY
SEP 13, 2023
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FORMER QANTAS CEO ALAN JOYCE (IMAGE: AAP/DEAN LEWINS)Qantas has today lost its appeal to the High Court for illegally sacking 1,700 baggage handlers, cleaners and ground staff, and calls for a clean-out of the airline’s board have reached fever pitch.Qantas has now been found guilty by the Federal Court, the Federal Court of Appeals and Australia’s highest court in a devastating unanimous decision by the seven justices in a case brought by the Transport Workers’ Union (TWU). The national carrier is now on the path to paying the multimillion-dollar legal bill on both sides, compensation to workers, and to clawing back bonuses from senior executives.
During the court hearings, Qantas conveniently maintained that the “sole decision-maker” in the matter was domestic and international division CEO Andrew David, who leaves the company this month — but the strategy clearly came from the top of the company.
Qantas chairman Richard Goyder and the entire board must be replaced by new directors, including a worker representative, after the High Court today unanimously upheld two Federal Court verdicts that Qantas illegally outsourced 1,700 workers, the TWU said.
The decision is the latest blow to the airline, already under fire for selling tickets for 8,000 flights it allegedly knew were already cancelled in 2022, and has significantly amplified the already tumultuous start to new CEO Vanessa Hudson’s administration.
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Read More“You owe these workers and their families a deep and sincere apology,” TWU national secretary Michael Kaine told Hudson.“These workers have been put through hell. Their families have been put through hell. Their lives have been dislocated. Some of them forever. Separations. Loss of property. That’s the consequence of this illegal decision. You need to apologise to these workers straightaway. And not just in words, but in actions.”
The decision should see the removal of senior staff and legal advisers from the company, and may well be the final nail in the coffin for Goyder and many of his board members, who backed the strategy. The company has spent millions of shareholder funds fighting the TWU, which has scored a major victory for Qantas staff and Australian workers.
Qantas staff are also hopeful that the decision will see a much-needed clean-out at the company. “Good that this didn’t go Qantas’ way. Pity Joyce wasn’t here to face the fire that he caused. Hopefully some more heads will roll”, one engineer said.
A Qantas pilot said: “The company had no moral compass and would make Gordon Gekko blush.”
Today’s decision will also serve as a wake-up call for corporate Australia. As Josh Bornstein, partner at law firm Maurice Blackburn who ran the TWU case, said: “Had the appeal succeeded, it would have greenlighted the further de-unionisation of the labour market by big business.”
“When companies outsource workers like Qantas, they effectively avoid having to bargain with their labour. Instead, they engage labour hire agencies and dictate to those agencies what they are willing to pay for labour. Outsourcing has been one of the reasons that employees have lost the ability to obtain real wage increases. Qantas engaged in a collective bargaining avoidance scheme and, thankfully, the High Court has recognised that it was illegal.”
The Federal Court found that during the height of the coronavirus pandemic, when most aviation was shut down, Qantas seized on a “vanishing window of opportunity” to get rid of its unionised baggage handlers, sacking the workers when they were deprived of bargaining power.
Qantas counsel Justin Gleeson SC told the High Court at its hearing in May that the airline was “bleeding cash” due to the pandemic. Since then it has posted a profit of almost $2.5 billion for the 2023 financial year.
Qantas received $2.7 billion in taxpayer subsidies throughout the pandemic, $856 million of which was JobKeeper to keep workers employed — the highest amount of JobKeeper paid to any company. Yet, by August 2021, 9,400 employees had left Qantas following redundancies and outsourcing.
Richard Goyder’s days as Qantas chairman are numbered — and deservedly so
Read MoreQantas argued it could not have breached employee rights, as employees did not have the right to take protected industrial action at the time of the decision to outsource.“The issue before the High Court was whether s 340(1)(b) of the act prohibited a person from taking adverse action against another person for the purpose of preventing the exercise of a workplace right that might arise in the future. The High Court unanimously held that it did and, in so doing, rejected Qantas’ contention that s 340(1)(b) only proscribed adverse action for the purpose of preventing the exercise of a presently existing workplace right,” the High Court said in a summary of its judgment.
Bornstein said Qantas had profited by dragging out the case for three years. “Qantas argued in the High Court that it should be permitted to sack workers merely because they wanted to bargain with the airline.”
“Qantas has fought this case every step of the way. For three long years, the sacked workers have waited for justice. During that time, the company has profited significantly from its illegal conduct”.
“The case isn’t over. Our legal team will now ask the Federal Court to hear claims for compensation for all adversely impacted workers and then seek a substantial penalty against Qantas,” said Bornstein.
Since the outsourcing, Qantas’ service has nosedived, TWU said, with complaints increasing 70% in 2022 amid high cancellations, delays and lost baggage. Company sources said that the only answer from Qantas’ airport managers, 10 days ago, was to “get Dnata [a ground handling outsourcer] to reduce delays”.
“The decision to outsource the remainder of the airline’s ground handling function was made in August 2020, when borders were closed, lockdowns were in place and no COVID vaccine existed. The likelihood of a years-long crisis led Qantas to restructure its business to improve its ability to survive and ultimately recover,“ Qantas said in a brief statement. “As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise for that.”
“When you decide to fight Qantas, you know you have to throw everything at it … A real David and Goliath struggle, but it shows what workers can achieve when they pull together and join together and stand up for what is right through the union,” ACTU boss Sally McManus said.
Qantas faces three further court challenges: record penalties of $600 million sought by the ACCC for selling alleged cancelled flights, a criminal prosecution from the NSW safety regulator for standing down a health and safety representative during the pandemic, and a class action from angry customers who say they were misled and denied refunds.
Crikey has learned from staff based at Sydney Airport that former CEO Alan Joyce boarded an Emirates flight to Dublin the day he departed the company, accompanied by a security detail so he did not “have to interact with other passengers or onlookers
Its time now for him & his little band of followers to be put through hell & face reality.
They have lived in a world where everyone else was wrong except them & now they might just realise where all their bullying has landed them.
Well done to the TWU for standing up to them & not folding to these self righteous entitled arrogant bullies of this world.
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You think the board or executive team care? They achieved the mission.
This company has many similarities with the Victorian government. Political/Business interests first, public interest second.
This company has many similarities with the Victorian government. Political/Business interests first, public interest second.
The Federal Court has already ruled that it would be "impractical" for the workers to be reinstated to their previous positions. The TWU is seeking a hefty fine and compensation, but at the end of the day Qantas still got what it wanted.
If I recall correctly, the federal court basically said its too complex (or words to that effect) to force reinstatement when Qantas lost initially.
So, presumably that will stand, but one would think now that they have run out of appeals, compensation and fines would be imposed.
If so it must be substantial as a deterrent and not just allow them to have a long term win and shrug it off as "a cost of doing business."
The cost of lost wages for 1700 staff and compensation for lost future earnings would be substantial if was to be applied. Let alone any fines.
So, presumably that will stand, but one would think now that they have run out of appeals, compensation and fines would be imposed.
If so it must be substantial as a deterrent and not just allow them to have a long term win and shrug it off as "a cost of doing business."
The cost of lost wages for 1700 staff and compensation for lost future earnings would be substantial if was to be applied. Let alone any fines.
