QANTAS: In court to sort out how much to pay ground workers sacked back in 2021 under Alan Joyce

If you can drag yourselves back to the heady final days of Alan Joyce’s reign as Qantas CEO, you might also remember the decision to outsource ground services. Qantas claimed that sacking its own ground workers could save the airline AU$100 million annually.

Little problem though. Sacking the ground workers and denying them the right to strike was illegal. The Federal Court held so back in 2022, and then also dismissed an appeal to the full court. A further appeal of that decision by Qantas to the High Court of Australia — out highest court — was also made. They also said ‘Yeah…nah’, upholding the Federal Court’s decision.

Late in 2024, under new CEO Vanessa Hudson, Qantas agreed to pay AU$120 million in compensation to the 1,820 employees whose contracts were terminated by the illegal action.

Developments in the illegal sacking of ground workers

This week the original Federal Court Judge who heard the case, Justice Michael Lee will decide on what is the amount of the fine Qantas will pay for its illegal behaviour.

The hearing started on Monday and is set to conclude on Wednesday. So far, the Transport Workers Union (TWU) has asked Justice Lee for the maximum fine of AU$121 million be imposed on Qantas. The TWU’s council, Noel Hutley, SC, has accused Qantas of taking advantage of the COVID-19 pandemic when sacking the workers.

Justice Lee suggested that the TWU’s position would be something along the lines of sending a message to the corporate community that they shouldn’t take courts as fools by trying to “fashion your evidence in a careful way, in order to try to dissemble what went on.”

The TWU has pointed out that the illegal sacking decision has real-world consequences, including the break-up of marriages, family dislocation, financial stress and mental anguish.

What Alan Joyce cost Qantas

Former CEO Alan Joyce headed Qantas at a time when a series of actions were held illegal or against ethical practice, with fines imposed by courts and regulators. So far Qantas has had to fork out for the following:

• Ghost Flights – AU$100 million in fines for selling tickets on flights that had already been cancelled. Imposed by the Federal Court
• Ghost Flights – AU$20 million in compensation for selling flights that had already been cancelled
• Illegal Sackings – AU$170,000 awarded to three workers as part of a test case over the illegal sackings
• Illegally Sackings – AU$120 million to compensate 1,820 ground workers who were sacked during the pandemic
• Illegal Sackings ~ AU$121 million this is the prospective maximum fine Qantas will pay. It could be smaller than this

Add all that up including the prospective fine for the illegal sackings that will be decided very soon, and you have a cost to Qantas of around AU$360 million excluding legal and other fees.

What did this cost Alan Joyce? Just AU$9.26 million out of a notional AU$23.6 million pay package. But also his job and reputation.

2PAXfly Takeout

We will know the court’s view soon enough. It’s dangerous to speculate on what the court might find. But it looks like the judge is considering awarding an amount on the heftier side of the ledger.

This whole episode has been a very dark one for Qantas. Some of Alan Joyce’s final actions seem to have cost the airline a great amount of money. The same decisions that were meant to save it expense.

If you are intrigued by these stories, then there are at least two books you should read: the rather hagiographic ‘ Alan Joyce and Qantas: The Trials and Transformation of an Australian Icon‘ by Peter Harbison, and the compelling and acidic ‘The Chairman’s Lounge: The inside story of how Qantas sold us out‘ by Joe Aston.

I’ve read and recommend them both.