The Federal Court recently ruled against Qantas, finding the airline guilty of unlawfully terminating 1700 ground services employees as part of an outsourcing initiative in 2021. The decision, made under the leadership of the former CEO, was driven by immense financial pressure amid the challenges posed by the ongoing pandemic.
Qantas had contemplated outsourcing these roles as early as 2018, with plans to introduce non-stop flights to London and New York. However, it wasn’t until 2021 that the airline implemented the outsourcing strategy, resulting in significant backlash and legal repercussions.
Despite facing financial losses amounting to billions of dollars and operational difficulties, Qantas executives defended their decision, citing the need to manage risks and navigate the commercial landscape. The former CEO highlighted the necessity of cost-cutting measures, expressing that the outsourcing move was crucial for the company’s sustainability during tumultuous times.
As the legal battle continues, with compensation claims and challenges from the Transport Workers Union, Qantas remains embroiled in one of Australia’s largest cases of illegal dismissals. The outcome of this case not only impacts the airline’s financial standing but also sheds light on the complex interplay between business decisions, employee rights, and government support during times of crisis.
