Qantas off to High Court
Qantas is taking its long-running dispute with the Transport Workers' Union (TWU) to the High Court in Canberra this week.
It is part of a legal case related to the airline's decision to sack 1,700 ground staff during the COVID-19 pandemic.
The decision to outsource the workers' jobs was made as a cost-saving measure in order to save Qantas $100 million annually.
The airline saw a reduction in passengers due to the pandemic, with profits plummeting by 91 per cent and a before-tax loss of $2.7 billion.
Qantas will argue that the pandemic had a significant impact on its revenue, stating that it progressively experienced a reduction in passengers on its international and domestic networks.
The company claims that it had sound commercial reasons for outsourcing the baggage handling and cleaning jobs at ten airports to shore up its viability.
However, the TWU believes that Qantas moved quickly to sack the Qantas Ground Services (QGS) workers to head off any industrial action, in breach of the Fair Work Act 2009.
Under the Act, adverse action towards a worker over a workplace right is prohibited.
The airline is boldly taking its case to the High Court after losing twice in the Federal Court.
The Federal Court found that Qantas breached the Fair Work Act by outsourcing the jobs. The High Court case will focus on the interpretation of the Act.
Qantas will argue that the law only prohibits the company from preventing an existing workplace right, not one that might be exercised in the future.
The TWU will urge the High Court not to accept this argument.
The union's lawyers claim that the Federal Court did not accept the evidence of Qantas Domestic and International chief executive Andrew David, who stated that he did not make the decision to thwart any industrial action and was relying only on a commercial imperative.
The TWU's submissions suggest a more opportunistic motive, claiming that the circumstances presented a unique opportunity to outsource and senior managers were motivated by those purposes.
Federal Workplace Minister Tony Burke is reportedly hoping to intervene in the case, despite objections from Qantas.
The workers involved have not yet received any compensation, and all parties are waiting for the outcome of the High Court proceedings.
The case is expected to run for two days.