High Court Of Australia Rules Against Qantas Airways Over Firing Workers During COVID-19 Pandemic

Qantas Airways Ltd QABSY allegedly violated the law when it terminated the employment of 1,700 ground staff members and substituted them with contracted workers in the early stages of the COVID-19 pandemic.

According to the High Court of Australia, Qantas had valid commercial justifications for its actions in 2020 during the peak of pandemic-induced border closures. 

However, the court ruled that the company violated industrial law because it "sought to thwart" the unionized employees' rights to engage in industrial action and collectively bargain, reported Reuters.

The ruling reflects public outrage against the flagship carrier, leading to its long-serving CEO's early retirement after an antitrust lawsuit accused the airline of selling tickets for canceled flights, added the report.

The Transport Workers Union (TWU) has called for the removal of Richard Goyder and the entire Qantas board, replacing them with new directors, including a worker representative.

Also Read: Qantas Airways Likely To Reach New Boeing 787 Widebody Order: Report

Qantas stated that it accepted the High Court's decision, highlighting that the Federal Court had previously ruled against reinstating the workers. The company also indicated that it had already set aside funds for penalties and compensation for affected employees following the Federal Court's decision.

"As we have said from the beginning, we deeply regret the personal impact the outsourcing decision had on all those affected and we sincerely apologies for that," the airline's statement said.

Price Action: QABSY shares closed higher by 0.62% at $17.83 On Tuesday.

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