Qantas ground staff made redundant by outsourcing lose Federal Court bid to get jobs back

Ground staff made redundant due to outsourcing have failed in their court bid to get their jobs back, but their union has vowed to appeal.

Outsourced Qantas workers have failed in their legal battle to get their jobs back, with the Federal Court refusing to order the airline to reinstate ground staff made redundant as it slashed costs.

But they will be compensated and the national carrier will face penalties, with the quantum to be determined next year.

The Federal Court in July ruled against Qantas over the outsourcing of 2000 ground staff, sparking furious celebration by the Transport Workers Union.

On Friday, Justice Michael Lee did not order Qantas to reinstate the jobs of the workers, which bitterly disappointed the TWU.

Qantas on Thursday flagged a first half underlying earnings loss of more than $1.1bn due to extended Covid-19 lockdowns across much of the nation. “This has been one of the worst halves of the entire pandemic,” chief executive Alan Joyce said. Picture: NCA NewsWire / Dylan Coker

“This finding brings a sad end to a year of unimaginable anguish for unlawfully sacked workers and their families,” national secretary Michael Kaine said.

“The TWU is undeterred in its belief that these workers deserve their jobs back.

“We will appeal and continue the fight for justice alongside the ongoing matters of compensation and penalties on Qantas.”

The airline said it welcomed this judgment “and the clarity it gives former employees”.

The court is moving to compensation as the primary remedy, but the workers want their old jobs back. Picture: NCA NewsWire/Jono Searle

“This decision shows the TWU has been giving their members false hope of getting their old jobs back, when reinstatement was always unworkable,” a spokeswoman said.

“We’ve always said that the decision to outsource our ground handling function was based on lawful commercial reasons in response to the unprecedented impact of the Covid crisis, which has so far led to more than $20 billion in lost revenue.

“This underscores why it was so important that we unlocked the critical savings from outsourcing the remainder of our ground handling.

“We have appealed the court’s original decision on the outsourcing decision, which is due to be heard early next year.”