Australia’s High Court rules Qantas illegally fired workers in pandemic. Australia’s highest court decided Wednesday that Qantas Airways (QAN.AX) violated the law by firing 1,700 ground personnel and replacing them with contractors early in the COVID-19 epidemic, reviving public criticism of a business embroiled in scandals.
Qantas had business motivations for its 2020 border closures during the epidemic. Still, the High Court of Australia violated industrial legislation because it “sought to thwart” unionized staff’s rights to industrial action and collective bargaining.
The flagship carrier’s early resignation of its long-serving CEO this month after an antitrust complaint accusing it of selling tickets to hundreds of canceled flights fueled public outrage.
The business also successfully pressured the federal government to block Qatar Airways’ desire to sell additional flights to Australia, reducing competition that may have decreased rates.
Qantas won’t discuss lobbying. Due to reputational scrutiny, its shares have plummeted approximately 17% since July 24.
In 2021, the lower-ranking Federal Court concluded Qantas infringed the law by outsourcing ground handling positions. The High Court affirmed the finding on Thursday. The Federal Court will determine employee sanctions and compensation.
Transport People Union (TWU) secretary Michael Kaine claimed, “These workers have been put through hell,” in the case.
“Their families have been put through hell, their lives have been dislocated, some forever,” he told media.
Qantas must return to the Federal Court and “do everything you can to expedite compensation for the workers so that they can get some justice and solace for themselves and their families,” Kaine urged.
Qantas said it respected the High Court judgment and highlighted the Federal Court had previously decided against requiring the airline to restore the personnel. It claimed it had previously set aside an undetermined amount for fines and compensation for impacted workers following the Federal Court verdict.
“As we have said from the start, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologise,” the airline added.
Qantas shares were down 0.4% in early trade, compared to the 0.8% market drop (.AXJO).
The airline predicted outsourcing baggage handling would save A$100 million ($64.15 million) a year in operational expenses and A$100 million in equipment expenditure over five years. It also protected Qantas against TWU strikes.
The firm made a yearly profit last month as foreign travel demand raised prices.
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