Qantas could pay millions over illegal outsourcing of ground workers

Qantas could be forced to pay more than $120m in penalties for illegally outsourcing more than 1800 ground workers.

The High Court unanimously rejected a Qantas appeal after the Federal Court found that the airline had illegally sacked staff.

A five-day hearing began in the Federal Court in Sydney on Monday to decide the penalty Qantas must pay for the 2020 decision during the Covid pandemic.

The Transport Workers Union (TWU) is calling for the maximum payment of more than $121m to be paid out.

“Not only was it an appalling act to get rid of a loyal workforce, it was the biggest case of illegal sackings in Australian corporate history,” TWU secretary Michael Kaine said in a statement on Monday.

“The penalty to Qantas must reflect this and send a message to every other company in Australia that you cannot sack your workers to prevent them from using their industrial rights.”

Mr Kaine said ground handling work for Qantas was now being undertaken by companies such as Swissport, which he alleged had “severe understaffing” and a “revolving door of fed-up workers”.

“This cannot be a business case for outsourcing and Qantas should not only pay the maximum legal penalty for its actions but commit to funding fair standards throughout its supply chain,” he said.

“We need to see Qantas held accountable to the fullest extent here.”

The maximum penalty Qantas can be ordered to pay is $121m, on top of the $120m compensation fund that is now in the process of being administered to workers.

The hearing before Justice Michael Lee continues.