TWU accuses Qantas of ‘lack of contrition’ over outsourcing ahead of court decision on penalty

Qantas and the TWU are headed for one last fight in the unlawful outsourcing case, with the Federal Court still to determine what penalty the airline should face.

Qantas and the Transport Workers Union are headed for one final showdown in the Federal Court to determine what penalty the airline should pay for the unlawful outsourcing of ground handling workers.

The union has previously indicated it was hoping for a fine in the vicinity of $200m for what it said amounted to the “biggest illegal sacking” in Australian history.

Late last year Qantas agreed to pay the affected workers a total of $120m in compensation for the outsourcing in late 2020, which the court found was partly motivated by a desire to avoid industrial action.

CEO Vanessa Hudson also offered a formal apology to the 1683 former employees.

In a case management hearing before Justice Michael Lee on Thursday, it emerged the TWU had raised the issue of a lack of contrition, corrective action and co-operation by Qantas with respect to the outsourcing, ahead of the penalty decision.

Justice Lee queried why Qantas had suggested the TWU’s claim the airline hadn’t shown contrition was “vague and without merit” and asked the two sides to find common ground so the matter could be finalised.

“By saying it’s not a relevant consideration, I don’t understand that,” Justice Lee said.

“I just want to have a specific checklist of what the parties agree are relevant considerations because I don’t want this going to a Full Court.”

He also questioned how Qantas could defend the claim of a lack of contrition when the airline was putting up only a “human resources person” for the hearing.

Barrister Philip Boncardo from the TWU said there would be six witnesses on the union’s side for the penalties hearing.

“I don’t know if any of my witnesses will be required for cross-examination. That may well be determined by the outcome of the agreed facts process,” said Mr Boncardo.

“We will require (Qantas’s) witness for cross examination.”

Federal Court judge Michael Lee will decide what penalty Qantas should pay for its unlawful outsourcing of ground handling workers. Picture: Britta Campion

Richard Dalton KC for Qantas, said people manager Catherine Walsh was the “senior human resources manager” and she would provide evidence in relation to contrition.

“There’s also documentation that goes to those matters and other matters, so that will be our in-chief case.”

Justice Lee said any new evidence introduced at the penalty hearing would help inform his decision, along with his findings from the unlawful outsourcing trial and the subsequent compensation hearings.

“I take the view that I have to determine the issue of penalty by reference to evidence that’s admissible, that is not only whatever findings I’ve made … but also on the basis of any relevant evidence adduced at the hearing,” he said.

The hearing has been set down for three days from May 19 before Justice Lee whose original ruling in the matter has been upheld by both the Full Court and High Court on appeal by Qantas.

As well as costing the airline a significant sum, the unlawful outsourcing has had serious repercussions for one of the key people involved in the decision.

Former Qantas manager Paul Jones had been in line for the top job at Virgin Australia but ultimately withdrew from the race, after the proposed appointment was criticised by the TWU and Employment Minister Murray Watt.

Mr Jones has since been promoted to the role of chief commercial officer at Virgin, after the elevation of Dave Emerson to the CEO role.

Originally published as TWU accuses Qantas of ‘lack of contrition’ over outsourcing ahead of court decision on penalty