Qantas avoids reinstatement order for outsourced workers

Qantas will not have to reinstate almost 2000 ground handling workers whose jobs were outsourced unlawfully, following a Federal Court ruling.

Qantas airport baggage handlers whose jobs were outsourced at the start of the year, will not be returning to work at the airline following a court ruling in Qantas’s favour.

Almost 2000 outsourced ground handling workers whose jobs were contracted out by Qantas will not be reinstated to the airline, despite Federal Court findings the outsourcing was illegal.

In a lengthy judgment which was at times scathing of Qantas’ conduct, Justice Michael Lee found it was probable the workers would simply be retrenched by the airline if he granted the Transport Workers Union application for global reinstatement.

“It goes without saying the court should not make an order that will be futile,” said Justice Lee.

However he acknowledged a reinstatement order would cause ongoing problems for Qantas, which had dismantled the business that employed the ground handling workers, and sold the equipment used.

“I appreciate this is little comfort for the outsourced employees and particularly distressing for those suffering real non-pecuniary losses associated with the loss of work,” Justice Lee said.

“It may be that different executives in different public companies … could rationally place a higher premium on non-financial matters such as loyalty and staff welfare than Qantas but that’s not really to the point.

“It’s not the role of the court to make moral or ethical judgment about the priorities of Qantas and its focus on maximising ownership return and its judgments as to how this imperative is balanced ethically with its responsibility to its employees including longstanding employees.”

He went on to say that compensation would be considered for the workers and a fine for Qantas after his original finding that the outsourcing decision was motivated by prohibited reasons.

A Qantas spokesman welcomed the judgment and the “clarity” it gave former employees.

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

“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-19 crisis, which has so far led to more than $20bn in lost revenue.”

TWU National Secretary Michael Kaine said the finding against reinstatement would be disappointing for workers who just wanted to go back to the jobs they love.

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

“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.”

He suggested Qantas treated the law like a “voluntary code” and was aided by the “exorbitant no-strings corporate welfare” provided by the federal government.

An appeal against the finding the Qantas outsourcing was unlawful will be heard by the Full Court of the Federal Court in February.

The TWU’s appeal against the decision not to order reinstatement would be heard at the same time.