What's Happening?
Qantas has been ordered to pay $90 million in compensation and penalties following a Federal Court ruling that found the airline unlawfully outsourced over 1,800 ground-handling jobs during the COVID-19 pandemic. The decision, initially made in November 2020, was aimed at cost-cutting as international travel halted. The Transport Workers’ Union challenged the legality of the move, arguing it was designed to prevent industrial action. The Federal Court ruled against Qantas in 2021, a decision upheld by the Full Federal Court in 2022 and the High Court in 2023. The case has shifted to compensation, with the Federal Court deciding on the financial penalties.
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Why It's Important?
This ruling sets a significant precedent for industrial relations within the aviation industry, highlighting the legal risks associated with outsourcing during crises. The decision impacts Qantas's reputation and underscores the importance of maintaining trust and morale among employees. For travel advisors, the case illustrates the potential long-term consequences of cost-cutting measures on brand perception. The ruling may influence how airlines and large employers approach outsourcing decisions in the future, potentially leading to reforms in aviation employment practices.
What's Next?
The Transport Workers’ Union is advocating for the reinstatement of some staff and broader reforms in aviation employment practices. Qantas, under new CEO Vanessa Hudson, faces the challenge of rebuilding its reputation amid public scrutiny over executive bonuses and allegations of selling tickets for canceled flights. The airline must navigate these issues while implementing the compensation fund for affected workers.
