Transport Workers' Union of Australia v Qantas Airways Limited (No 4)
Positively treated
Treatment by later cases (4)
4 neutral
Citation timeline
2024
2025
Applicant: Transport Workers' Union of Australia
Respondent: Qantas Airways Limited (No 4)
Ratio
Although Qantas contravened s340(1) of the Fair Work Act 2009 (Cth) by taking adverse action against outsourced employees for prohibited reasons during the COVID-19 pandemic, global reinstatement orders are not an appropriate remedy in the circumstances because: (1) reinstatement would require substantial re-creation of ground operations at significant cost and delay; (2) Qantas has clearly indicated it will immediately retrench the workers again once it perceives it can lawfully do so; and (3) ordering reinstatement would involve continuing Court supervision and would not effectively remedy the statutory breach given Qantas's fixed intention to restore the status quo ante of outsourcing.
Outcome
Against applicant
dismissed
Authority signal
Positively treated
Signal-weighted score: 3.9
Derived from how later decisions have treated this case. Dark green = leading authority,
green = positively treated, grey = neutral or sparse data,
amber = caution, red = treated negatively.
Key facts · 20
- 1683 outsourced employees affected by Qantas's decision to outsource ground handling operations at 10 Australian airports in November 2020 during COVID-19 pandemic
- Qantas Airports Ground Operations represented ~73% of ground handling activity within Qantas
- Estimated savings from outsourcing: over $100m per annum eventually; later revised to ~$125m by end of 2023 FY
- Qantas made unprecedented $1.826 billion loss before tax for FY2021; ~$5 billion cumulative statutory losses FY2020-2021
- Flying activity dramatically decreased; large-scale standdowns of employees occurred in 2021
- Qantas has raised excess $2.5b in debt and $1.4b in equity; placed considerable pressure on balance sheet
- Lee J found Qantas contravened s340(1) of Fair Work Act 2009 (Cth) in two prior judgments ([2021] FCA 873 and [2021] FCA 1012)
- Union brought application under s539(2) FWA; 716 of 1820 original affected employees (39.3%) were Union members as at 31 December 2020
- Union sought global reinstatement orders in prayers [1]-[5] of Points of Claim, plus compensation and penalties
- Court ordered reinstatement question determined separately prior to other relief (1 October 2021)
- Hearing conducted 13-17 December 2021
- Parties agreed substantial facts; Agreed Facts document admitted as Exhibit A
- Survey of outsourced employees conducted by Social Research Centre; 77.7% of 1531 responses indicated preference for reinstatement; however survey methodology flawed: (1) involved heavy involvement of Union's solicitors in design contrary to Survey Practice Note; (2) lacked balance in critical question; (3) clouded by Union communications to members; (4) subject to social media campaign by Union activists encouraging artificial inflation of reinstatement responses regardless of actual preference
- Facebook posts by union activist Desiree Sheets-Chavolla and others encouraged workers to answer 'yes' to reinstatement survey regardless of actual preference; post gained 78 'likes' and 39 comments
- Qantas gave unchallenged evidence that reinstatement would require: (a) capital expenditure; (b) buying back ground services equipment; (c) lease arrangements; (d) recruiting ~50 ground operations managers across 10 ports; (e) designing new labour model for integrated work with contractors
- Minimum estimated timeline for reinstatement: 28 weeks from opt-out period
- Mr David (Qantas decision-maker) expressed fixed intention that any reinstated employees would be retrenched as soon as Qantas considered it could lawfully do so
- Qantas and QGS admitted they would need to 're-create substantially' Qantas Airports Ground Operations business to comply with global reinstatement orders
- Outsourced employees who took positions with contractors employed on inferior terms and conditions compared to QAL Agreement and QGS Agreement
- Some Union members (e.g. Mr Dowie, Mr Bates, Mr Mason) gave unchallenged evidence of serious personal impact: loss of long-standing employment, financial hardship, psychological distress, family separation
Factors
For
- Qantas contravened s340(1) by taking adverse action against 1683 outsourced employees for prohibited reason (retaliation for or to prevent exercise of industrial rights)
- Statutory breach carries protective purpose to preserve collective industrial rights
- 1683 affected employees and families desire clarity on their position
- Delay in determining reinstatement relief would imperil the entitlement to relief
- Some outsourced employees gave unchallenged evidence of serious personal impact: loss of long-term employment, financial hardship, psychological injury, family separation
- General principle that reinstatement vindicates public policy in protecting employees from adverse action
- Survey indicated (though unreliably) that 77.7% of respondents wished reinstatement if ordered
Against
- Reinstatement would require substantial re-creation of Qantas Airports Ground Operations business
- Substantial capital expenditure, equipment purchases, lease arrangements, and recruitment of ~50 managers across 10 airports required
- Reinstatement timeline estimated at minimum 28 weeks from opt-out period; potentially much longer
- Qantas has secured $125 million per annum in savings through outsourcing and views these as highly significant
- Qantas made $1.826 billion loss in FY2021; cumulative statutory losses ~$5 billion FY2020-2021; facing serious financial difficulties
- Mr David (responsible decision-maker) has fixed intention to retrench any reinstated employees as soon as lawfully possible
- Qantas will not willingly re-create ground operations business; will take legal advice to minimise compliance obligations
- Flying activity dramatically decreased due to COVID-19; had Qantas not outsourced, would have stood down large numbers in 2021
- Ordering reinstatement would involve continuing Court supervision to ensure compliance
- New integrated labour model with contractors and reinstated employees untested and risky
- Survey evidence clouded by procedural defects, Union communications to members, and social media campaign encouraging artificial inflation of reinstatement preferences; survey results unreliable
- Compensation may be more practical and effective remedy than reinstatement
- Order would impose significant commercial burden on respondent without prospect of achieving stated statutory purpose
Concept tags · 5
Principles · 8
articulates para 20
An industrial association bringing proceedings under s539(2) for contraventions of Pt 3-1 is not acting as a fiduciary of its members or affected employees, and non-parties to the litigation are not bound by the judgment by operation of law or equity (absent statutory estoppel in class actions or Chancery representative proceedings).
articulates para 81
Section 545(1) confers a wide discretionary power to make any order the court considers appropriate if satisfied a person has contravened a civil remedy provision; the word 'appropriate' emphasises that any order must be judicially appropriate or just.
articulates para 85
In assessing whether reinstatement is appropriate under s545(1), the court must consider the protective purpose of s340(1)(b) and the historical understanding of the power to order reinstatement where an employer has contravened provisions protecting against adverse action.
articulates para 85
Where an employer has indicated a fixed intention to retrench reinstated employees as soon as it perceives it can lawfully do so, and reinstatement would require substantial re-creation of business operations at significant cost with ongoing Court supervision, reinstatement is not an appropriate remedy despite the contravention of s340.
cites para 14
An industrial association entitled to represent industrial interests of a person does not require that person to be a member; eligibility for membership in accordance with eligibility rules is sufficient.
cites para 16
Traditional forms of litigation representation (agent, trustee, tutor, guardian, representative party) typically feature fiduciary duties and court-supervised procedures; but a union acting under statutory standing to pursue legitimate industrial objectives is a distinct form not creating fiduciary relationships with non-member workers.
cites para 20
A fiduciary relationship exists when a person has undertaken to perform a function for, or assumed responsibility to, another such that the other reasonably expects the fiduciary to act in their interest to the exclusion of their own.
cites para 83
In cases of contravention of provisions protecting employees from adverse action, reinstatement orders are a principled approach to vindicating the public policy purpose of protecting employees from adverse action for exercise of industrial rights.
Cases cited in this decision · 60
Cited
[2021] FCA 873
(not in corpus)
"…DGMENT (Delivered ex tempore , revised from the transcript) LEE J: A INTRODUCTION 1 These reasons assume a familiarity with my two judgments as to liability in relation to this dispute: Transport Workers’ Union of...…"
Cited
(2021) 308 IR 244
(not in corpus)
"…ex tempore , revised from the transcript) LEE J: A INTRODUCTION 1 These reasons assume a familiarity with my two judgments as to liability in relation to this dispute: Transport Workers’ Union of Australia v Qantas...…"
Cited
[2021] FCA 1012
(not in corpus)
"…nts as to liability in relation to this dispute: Transport Workers’ Union of Australia v Qantas Airways Limited [2021] FCA 873 ; (2021) 308 IR 244 ( principal judgment or PJ ) and Transport Workers’ Union of...…"
Cited
(2021) 308 IR 333
(not in corpus)
"…y in relation to this dispute: Transport Workers’ Union of Australia v Qantas Airways Limited [2021] FCA 873 ; (2021) 308 IR 244 ( principal judgment or PJ ) and Transport Workers’ Union of Australia v Qantas Airways...…"
Cited
[2021] FCA 1339
(not in corpus)
"…statement Hearing ). The balance of relief sought by the Union (relating to compensation and pecuniary penalties) was deferred. 3 I explained the reasons for taking this course in Transport Workers’ Union of...…"
Cited
[2021] FCA 1136
(not in corpus)
"…deferral proposed by Qantas was not only rejected by me in making case management orders, but also by Perram J who, in rejecting an application for a stay of this proceeding, accepted in Qantas Airways Limited v...…"
Followed
[2017] HCA 55
(not in corpus)
"…ndustrial association in accordance with its eligibility rules is sufficient to make the industrial association entitled to represent the industrial interests of the person: see Regional Express Holdings Limited v...…"
Followed
(2017) 262 CLR 456
(not in corpus)
"…ation in accordance with its eligibility rules is sufficient to make the industrial association entitled to represent the industrial interests of the person: see Regional Express Holdings Limited v Australian...…"
Cited
[2015] HCA 28
— Tomlinson v Ramsey Food Processing Pty Limited
"…n for loss suffered by the third parties), the Union is performing a representative function, quite similar to other representative functions known to the law, being those described by the High Court in Tomlinson v...…"
Cited
(2015) 256 CLR 507
(not in corpus)
"…red by the third parties), the Union is performing a representative function, quite similar to other representative functions known to the law, being those described by the High Court in Tomlinson v Ramsey Food...…"
Cited
[1957] HCA 19
(not in corpus)
"…d Organisations) Act 2009 (Cth) ( FWRO Act ). It is a body corporate, separate and distinct from its members: s 27. It acts in an independent capacity: R v Dunlop Rubber Australia Limited; Ex parte Federated...…"
Cited
(1957) 97 CLR 71
(not in corpus)
"…Act 2009 (Cth) ( FWRO Act ). It is a body corporate, separate and distinct from its members: s 27. It acts in an independent capacity: R v Dunlop Rubber Australia Limited; Ex parte Federated Miscellaneous Workers’...…"
Cited
[1984] HCA 64
(not in corpus)
"…a responsibility to, another as would thereby reasonably entitle that other person to expect that they will act in the other person’s interest to the exclusion of their own interest: see Hospital Products Limited v...…"
Cited
(1984) 156 CLR 41
(not in corpus)
"…to, another as would thereby reasonably entitle that other person to expect that they will act in the other person’s interest to the exclusion of their own interest: see Hospital Products Limited v United States...…"
Cited
[1996] FCAFC 870
(not in corpus)
"…the other person’s interest to the exclusion of their own interest: see Hospital Products Limited v United States Surgical Corporation [1984] HCA 64 ; (1984) 156 CLR 41 (at 96–97 per Mason J); News Limited v...…"
Cited
(1996) 64 FCR 410
(not in corpus)
"…interest to the exclusion of their own interest: see Hospital Products Limited v United States Surgical Corporation [1984] HCA 64 ; (1984) 156 CLR 41 (at 96–97 per Mason J); News Limited v Australian Rugby Football...…"
Cited
(1980) 3 ALR 297
(not in corpus)
"…of that public interest ought [to] be satisfied by reinstatement orders being made”: T22.35–36. In response to my request that senior counsel identify the high water mark of those authorities, counsel referred to...…"
Cited
[2020] FCAFC 192
(not in corpus)
"…bjects of Part 3 - 1 is to “protect workplace rights”. This object is directed, among other things, to s 340(1): cf Construction, Forestry, Maritime, Mining and Energy Union v Australian Building and Construction...…"
Cited
(2020) 282 FCR 1
(not in corpus)
"…1 is to “protect workplace rights”. This object is directed, among other things, to s 340(1): cf Construction, Forestry, Maritime, Mining and Energy Union v Australian Building and Construction Commissioner (The Bay...…"
Cited
[2018] FCA 83
(not in corpus)
"…Commissioner (The Bay Street Appeal) [2020] FCAFC 192 ; (2020) 282 FCR 1 (at 8 [13] per Allsop CJ, and at 20 [67] per Flick J); Australian Building and Construction Commissioner v Construction, Forestry, Mining and...…"
Cited
(2018) 260 FCR 564
(not in corpus)
"…e Bay Street Appeal) [2020] FCAFC 192 ; (2020) 282 FCR 1 (at 8 [13] per Allsop CJ, and at 20 [67] per Flick J); Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union (The...…"
Applied
(1986) 16 IR 40
(not in corpus)
"…” (such as the employee not desiring to be reinstated). (5) An employer should not be able to benefit or profit from its breach of the statutorily prescribed norm. 93 Consistently with this, the Union pointed to...…"
Cited
[1980] FCA 143
(not in corpus)
"…It is not lightly to be inferred in the absence of compelling language.” [Counsel for the employer] expressly refrained from submitting that Slonim v Fellows “in any way cuts down the full authority of Bowling’s case...…"
Cited
(1980) 50 FLR 79
(not in corpus)
"…to be inferred in the absence of compelling language.” [Counsel for the employer] expressly refrained from submitting that Slonim v Fellows “in any way cuts down the full authority of Bowling’s case ” (ie the Full...…"
Cited
(1983) 4 IR 329
(not in corpus)
"…follow the principles expressed by the Full Court in Bowling’s case . In support of his submissions as to the question of reinstatement, Mr Kaufman cited a number of decisions by State Courts and Tribunals, including...…"
Cited
[2009] FCA 726
(not in corpus)
"…see Independent Education Union v Geelong Grammar School [2000] FCA 557 (at [34] per Finkelstein J); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of...…"
Cited
[2012] FCA 697
(not in corpus)
"…c, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Bluestar Pacific Pty Limited [2009] FCA 726 (at [50] per Greenwood J); Construction, Forestry, Mining and Energy Union v Pilbara Iron...…"
Cited
[2015] FCA 1088
(not in corpus)
"…Greenwood J); Construction, Forestry, Mining and Energy Union v Pilbara Iron Company (Services) Pty Ltd (No 3) [2012] FCA 697 (at [186] and [190] per Katzmann J); Construction, Forestry, Mining and Energy Union v...…"
Cited
(2015) 253 IR 391
(not in corpus)
"…truction, Forestry, Mining and Energy Union v Pilbara Iron Company (Services) Pty Ltd (No 3) [2012] FCA 697 (at [186] and [190] per Katzmann J); Construction, Forestry, Mining and Energy Union v Port Kembla Coal...…"
Cited
[2015] FCA 27
(not in corpus)
"…697 (at [186] and [190] per Katzmann J); Construction, Forestry, Mining and Energy Union v Port Kembla Coal Terminal Ltd (No 2) [2015] FCA 1088 ; (2015) 253 IR 391 (at 480 [470] per Murphy J); Sayed v Construction,...…"
Cited
(2015) 327 ALR 460
(not in corpus)
"…nd [190] per Katzmann J); Construction, Forestry, Mining and Energy Union v Port Kembla Coal Terminal Ltd (No 2) [2015] FCA 1088 ; (2015) 253 IR 391 (at 480 [470] per Murphy J); Sayed v Construction, Forestry, Mining...…"
Cited
[2020] FCA 1215
(not in corpus)
"…] per Murphy J); Sayed v Construction, Forestry, Mining and Energy Union [2015] FCA 27 ; (2015) 327 ALR 460 (at 521 [313] per Mortimer J); Construction, Forestry, Maritime, Mining and Energy Union v Melbourne Precast...…"
Cited
[2015] FCA 716
— Kennewell v MG & CG Atkins trading as Cardinia Waste & Recyclers
"…under s 346, in the absence of some particular reason being shown why such an order should not be made”. 96 In addition to these cases, it is worth mentioning two others. The first is Kennewell v MG & CG Atkins...…"
Cited
[1984] HCA 51
— Slonim v Fellows
"…n order should not be made”. 96 In addition to these cases, it is worth mentioning two others. The first is Kennewell v MG & CG Atkins trading as Cardinia Waste & Recyclers [2015] FCA 716 , where Tracey J observed...…"
Cited
(1984) 154 CLR 505
(not in corpus)
"…ot be made”. 96 In addition to these cases, it is worth mentioning two others. The first is Kennewell v MG & CG Atkins trading as Cardinia Waste & Recyclers [2015] FCA 716 , where Tracey J observed (at [75]–[76]): In...…"
Cited
[2000] FCA 557
(not in corpus)
"…s in this Court which are supportive of the proposition that reinstatement is appropriate “in the ordinary case” in which an applicant’s employment has been terminated for a proscribed reason: see Independent...…"
Cited
[2012] FCA 1218
(not in corpus)
"…rdinary case” in which an applicant’s employment has been terminated for a proscribed reason: see Independent Education Union v Geelong Grammar School [2000] FCA 557 at [34] ; Construction, Forestry, Mining and...…"
Cited
(2012) 228 IR 195
(not in corpus)
"…hich an applicant’s employment has been terminated for a proscribed reason: see Independent Education Union v Geelong Grammar School [2000] FCA 557 at [34] ; Construction, Forestry, Mining and Energy Union v BHP Coal...…"
Cited
[2010] FCA 799
(not in corpus)
"…FCA 1218 ; (2012) 228 IR 195 at 237. The position remains, however, that the discretion, vested in the Court by s 545, falls to be exercised in the peculiar circumstances of each case. 97 The second is the decision...…"
Cited
(2010) 199 IR 40
(not in corpus)
"…) 228 IR 195 at 237. The position remains, however, that the discretion, vested in the Court by s 545, falls to be exercised in the peculiar circumstances of each case. 97 The second is the decision of Bromberg J in...…"
Cited
[1984] FCA 275
(not in corpus)
"…void constant supervision by a court. Courts have increasingly realised that those considerations are no longer as applicable to modern day employment relations as historically was the case: Turner v Australasian...…"
Cited
(1984) 6 FCR 177
(not in corpus)
"…ervision by a court. Courts have increasingly realised that those considerations are no longer as applicable to modern day employment relations as historically was the case: Turner v Australasian Coal and Shale...…"
Cited
(1988) 24 IR 397
(not in corpus)
"…o modern day employment relations as historically was the case: Turner v Australasian Coal and Shale Employees’ Federation [1984] FCA 275 ; (1984) 6 FCR 177 at 192-193; 9 IR 87 at 97-98 per Northrop, Keely and Gray...…"
Cited
[2016] FCAFC 99
(not in corpus)
"…upport for a presumptive or ordinary “principle”, at least in “the ordinary case” (whatever that elusive description is supposed to mean), in favour of reinstatement. In Port Kembla Coal Terminal Ltd v Construction,...…"
Cited
(2016) 248 FCR 18
(not in corpus)
"…mptive or ordinary “principle”, at least in “the ordinary case” (whatever that elusive description is supposed to mean), in favour of reinstatement. In Port Kembla Coal Terminal Ltd v Construction, Forestry, Mining...…"
Cited
[1923] HCA 36
(not in corpus)
"…l the circumstances, fair and just to order specific performance. This involves consideration as to whether an element of injustice is present that would not have been present had the relief been sought without any...…"
Cited
(1923) 33 CLR 115
(not in corpus)
"…ces, fair and just to order specific performance. This involves consideration as to whether an element of injustice is present that would not have been present had the relief been sought without any operative delay:...…"
Cited
(1991) 24 NSWLR 573
(not in corpus)
"…to whether an element of injustice is present that would not have been present had the relief been sought without any operative delay: see Carter v Hyde [1923] HCA 36 ; (1923) 33 CLR 115 (at 127 per Isaacs J);...…"
Cited
[2008] FCA 467
(not in corpus)
"…dvised them to pursue a later hearing. It also appears that the law is somewhat unsettled as to the approach that should be taken in order to establish a serious question to be tried seeking interim relief: see...…"
Cited
(2008) 168 FCR 340
(not in corpus)
"…rsue a later hearing. It also appears that the law is somewhat unsettled as to the approach that should be taken in order to establish a serious question to be tried seeking interim relief: see Police Federation of...…"
Cited
[2019] FCA 1272
(not in corpus)
"…seeking interim relief: see Police Federation of Australia v Nixon [2008] FCA 467 ; (2008) 168 FCR 340 (at 361–362 [69] Ryan J); Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU) v...…"
Cited
(1988) 81 ALR 213
(not in corpus)
"…127 Thirdly , it is said that refusing reinstatement relief would be incongruent with authority, in particular, the principles expounded in Australasian Meat Industry Employees Union v Sunland Enterprises Pty Ltd...…"
Cited
[2005] HCA 22
— Stephen Blackadder v Ramsey Butchering Services Pty Ltd
"…t Qantas will not take steps absent compulsion to re-create the infrastructure and conditions necessary for outsourced employees to be reinstated is contended to be contrary to the principles explained Blackadder v...…"
Cited
(2005) 221 CLR 539
(not in corpus)
"…t take steps absent compulsion to re-create the infrastructure and conditions necessary for outsourced employees to be reinstated is contended to be contrary to the principles explained Blackadder v Ramsey Butchering...…"
Cited
[2005] FCA 1662
(not in corpus)
"…(or could) lawfully have happened in any event: Bowling (at 304–305 per JB Sweeney, Evatt and Northrop JJ); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of...…"
Cited
(2005) 147 IR 35
(not in corpus)
"…y have happened in any event: Bowling (at 304–305 per JB Sweeney, Evatt and Northrop JJ); Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v ACI...…"
Cited
[2004] FCA 1661
— Chelvarajah v Global Protection Pty Ltd
"…. 144 There will be examples where the difficulties in reinstatement, although not properly described as incapable of performance, would not be “appropriate”. A good example is provided by Gray J’s decision in...…"
Cited
(2004) 142 FCR 296
(not in corpus)
"…e examples where the difficulties in reinstatement, although not properly described as incapable of performance, would not be “appropriate”. A good example is provided by Gray J’s decision in Chelvarajah v Global...…"
Cited
[2018] HCA 3
(not in corpus)
"…n away” with something by avoiding reinstatement, but any order made pursuant to s 545 of the FWA must be remedial, compensatory or preventative (see Australian Building and Construction Commissioner v Construction,...…"
Cited
(2018) 262 CLR 157
(not in corpus)
"…mething by avoiding reinstatement, but any order made pursuant to s 545 of the FWA must be remedial, compensatory or preventative (see Australian Building and Construction Commissioner v Construction, Forestry,...…"
Subsequent treatment · 4
Cited / considered· 4
Cited
[2025] FWCFB 177
FWC — Full Bench
— United Firefighters' Union of Australia (259V) v Fire Rescue Victoria Trading AS FRV
Cited
Cited
Cited
Archived text (36918 words)
Transport Workers' Union of Australia v Qantas Airways Limited (No 4) [2021] FCA 1602 (17 December 2021)
Last Updated: 20 December 2021
FEDERAL COURT OF AUSTRALIA
Transport Workers’ Union of
Australia v Qantas Airways Limited (No 4)
[2021] FCA 16
02
File number:
NSD 1309 of 2020
Judgment of:
LEE J
Date of judgment:
17 December 2021
Catchwords:
EMPLOYMENT LAW
– adverse action
– decision of Qantas to outsource ground handling operations at 10
Australian airports in the midst
of the COVID-19 pandemic – outsourcing
found to have been for a prohibited reason contravening the
Fair Work Act
2009
(Cth) (
FWA
) – form of relief – separate question as
to whether “global” reinstatement should be ordered –
consideration
of the relevant principles – whether there is a
prima
facie
entitlement to reinstatement under
s 545
of the FWA – need to
determine what relief is “appropriate” in the circumstances of the
particular case –
the importance of work as a form of continuing
participation in society – the statutory purpose to preserve collective
industrial
rights – where outsourced employees cannot be reinstated
without re-creation of a ground handling operation involving significant
cost
and delay – where Qantas will immediately retrench the workers again when
it perceives it can lawfully do so – where
ordering reinstatement would
involve continuing supervision by the Court – reinstatement not the
appropriate remedy in all
the circumstances
PRACTICE AND
PROCEDURE
– observations on the representative capacity of the Union
– where no fiduciary relationships exists – observations
as to how
and whether third parties are bound by a judgment obtained by a litigation
“representative”
Legislation:
Acts Interpretation Act 1901
(Cth)
s
33(2A)
Conciliation and Arbitration Act 1904
(Cth) ss 5(1), 5(5)
Evidence Act 1995
(Cth)
ss 55
,
56
,
135
,
140
(2),
191
Fair Work (Registered Organisations) Act 2009
(Cth)
s 27
Fair Work Act 2009
(Cth)
ss 12
,
233
,
293
,
334
,
336
(1),
340
,
346
,
381
,
390
,
392
,
502
,
539
(2),
540
,
544
,
545
,
546
Federal Court of Australia Act 1976
(Cth)
ss 33ZB
,
37P
(2),
Pt
IVA
Federal Court Rules 2011
(Cth) rr 20.14, 30.01
Cases cited:
Australasian Meat Industry Employees Union v
Sunland Enterprises Pty Ltd (trading as Sunland Wholesale Meats)
(1988) 81
ALR 213
Australian Building and Construction Commissioner v Construction,
Forestry, Mining and Energy Union
[2018] HCA 3
;
(2018) 262 CLR 157
Australian Building and Construction Commissioner v Construction,
Forestry, Mining and Energy Union (The Bay Street Case)
[2018] FCA 83
;
(2018) 260 FCR 564
Automotive, Food, Metals, Engineering, Printing and Kindred Industries
Union (AMWU) v O-I Operations (Australia) Pty Ltd
[2019] FCA 1272
Blackadder v Ramsey Butchering Services Pty Ltd
[2005] HCA 22
;
(2005) 221 CLR 539
Communications, Electrical, Electronic, Energy, Information, Postal,
Plumbing and Allied Services Union of Australia v ACI Operations
Pty Ltd
[2005] FCA 1662
;
(2005) 147 IR 35
Bowling v General Motors Holdens Ltd
(1980) 3 ALR 297
Carter v Hyde
[1923] HCA 36
;
(1923) 33 CLR 115
Chelvarajah v Global Protection Pty Ltd
[2004] FCA 1661
;
(2004) 142
FCR 296
Communications, Electrical, Electronic, Energy, Information, Postal,
Plumbing and Allied Services Union of Australia v Bluestar Pacific
Pty Limited
[2009] FCA 726
Construction, Forestry, Maritime, Mining and Energy Union v Australian
Building and Construction Commissioner (The Bay Street Appeal)
[2020] FCAFC
192
;
(2020) 282 FCR 1
Construction, Forestry, Maritime, Mining and Energy Union v Melbourne
Precast Concrete Nominees Pty Ltd (No 2)
[2020] FCA 1215
Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd (No
3)
[2012] FCA 1218
;
(2012) 228 IR 195
Construction, Forestry, Mining and Energy Union v Pilbara Iron Company
(Services) Pty Ltd (No 3)
[2012] FCA 697
Construction, Forestry, Mining and Energy Union v Port Kembla Coal
Terminal Ltd (No 2)
[2015] FCA 1088
;
(2015) 253 IR 391
Hospital Products Limited v United States Surgical Corporation
[1984] HCA 64
;
(1984) 156 CLR 41
Independent Education Union v Geelong Grammar School
[2000] FCA
557
Kennewell v MG & CG Atkins trading as Cardinia Waste & Recyclers
[2015] FCA 716
Kerrin v Leighton Contractors Pty Ltd
(1986) 16 IR 40
News Limited v Australian Rugby Football League Limited
[1996] FCAFC 870
;
(1996) 64
FCR 410
Metro Trains Melbourne Pty Ltd v Australian Rail, Tram and Bus Union
Industry
[2019] FCA 1265
Police Federation of Australia v Nixon
[2008] FCA 467
;
(2008) 168
FCR 340
Port Kembla Coal Terminal Ltd v Construction, Forestry, Mining and
Energy Union
[2016] FCAFC 99
;
(2016) 248 FCR 18
Qantas Airways Limited v Transport Workers’ Union of
Australia
[2021] FCA 1136
Quinn v Overland
[2010] FCA 799
;
(2010) 199 IR 40
R v Dunlop Rubber Australia Limited; Ex parte Federated Miscellaneous
Workers’ Union of Australia
[1957] HCA 19
;
(1957) 97 CLR 71
Regional Express Holdings Limited v Australian Federation of Air
Pilots
[2017] HCA 55
;
(2017) 262 CLR 456
Sayed v Construction, Forestry, Mining and Energy Union
[2015] FCA
27
;
(2015) 327 ALR 460
Sutherland v Hills
Industries Ltd
(unreported, Keely J, 22
September 1982)
Tomlinson v Ramsey Food Processing Pty Limited
[2015] HCA 28
;
(2015)
256 CLR 507
Transport Workers’ Union of Australia v Qantas Airways Limited
[2021] FCA 873
;
(2021) 308 IR 244
Transport Workers’ Union of Australia v Qantas Airways Limited (No
2)
[2021] FCA 1012
;
(2021) 308 IR 333
Transport Workers’ Union of Australia v Qantas Airways Limited (No
3)
[2021] FCA 1339
Websdale v S & J D Investments Pty Ltd
(1991) 24 NSWLR
573
Survey Evidence Practice Note (GPN-SURV)
[3.2], [4.5]
Kolstad I,
“Why Firms Should Not Always Maximise Profits” (2007) 76
Journal
of Business Ethics
(2007) 137
Division:
Fair Work Division
Registry:
New South Wales
National Practice Area:
Employment and Industrial Relations
Number of paragraphs:
163
Date of hearing:
13 – 17 December 2021
Counsel for the Applicant:
Mr M Gibian SC with Mr P Boncardo
Solicitor for the Applicant:
Maurice Blackburn
Counsel for the Respondents:
Mr R Dalton QC with Mr M Follett and Mr N Burmeister
Solicitor for the Respondents:
Herbert Smith Freehills
ORDERS
NSD 1309 of 2020
BETWEEN:
TRANSPORT WORKERS UNION OF AUSTRALIA
Applicant
AND:
QANTAS AIRWAYS LIMITED ACN 009 661
901
First Respondent
QANTAS GROUND SERVICES PTY
LTD
Second Respondent
ORDER MADE
BY:
LEE J
DATE OF ORDER:
17 DECEMBER 2021
THE COURT ORDERS THAT:
1. The applicant’s claim for relief by way of orders for general
reinstatement of affected employees (as identified in the Points
of Claim
document filed on 25 August 2021 at prayers [1]–[5]) is dismissed.
2. The balance of the proceedings be adjourned for a case management hearing
on a date to be fixed after the determination by the
Full Court of the
application for leave to appeal (and if leave be granted, the appeal) in
proceeding NSD 927 of 2021.
3. Pursuant to
s 24(1A)
of the
Federal Court of
Australia Act 1976
(Cth) and r 36.03 of the
Federal Court Rules 2011
(Cth), the applicant be given leave to appeal order 1 above, subject to any
notice of appeal being filed, served and provided by
email to the Associate to
Justice Perram on or before 4pm on 7 January 2022.
Note: Entry of
orders is dealt with in
Rule 39.32
of the
Federal Court Rules 2011
.
REASONS FOR
JUDGMENT
(Delivered
ex tempore
, revised from the
transcript)
LEE J:
A INTRODUCTION
1 These reasons assume a familiarity with my two
judgments as to liability in relation to this dispute:
Transport
Workers’ Union of Australia v Qantas Airways Limited
[2021] FCA 873
;
(2021) 308 IR 244
(
principal
judgment
or
PJ
) and
Transport Workers’ Union
of Australia v Qantas Airways Limited (No 2)
[2021] FCA 1012
;
(2021) 308 IR
333
(
declaratory judgment
or
DJ
).
2 This judgment deals with part of the relief sought by the applicant
(
Union
). Over the opposition of the first respondent (
Qantas
), on
1 October 2021, I made an order that pursuant to
rule 30.01
of the
Federal
Court Rules 2011
(Cth) (
FCR
) and
s 37P(2)
of the
Federal Court of
Australia Act 1976
(Cth) (
FCAA
), the question of whether the Union is
entitled to relief by way of orders for general reinstatement of those of the
affected employees
who were retrenched (
outsourced employees
) (as
identified in the Points of Claim document filed on 25 August 2021 at prayers
[1]–[5]) be determined separately and prior
to any other claim for relief
(
Reinstatement Hearing
). The balance of relief sought by the Union
(relating to compensation and pecuniary penalties) was deferred.
3 I explained the reasons for taking this course in
Transport
Workers’ Union of Australia v Qantas Airways Limited (No 3)
[2021] FCA
1339.
In short, the opposition of Qantas reflected its desire to seek a deferral
of consideration of any questions as to relief until after
the Full Court has
heard and determined an application for leave to appeal (and if leave be
granted, an appeal), listed to be heard
on 24 and 25 February 2022. The delay
and deferral proposed by Qantas was not only rejected by me in making case
management orders,
but also by Perram J who, in rejecting an application for a
stay of this proceeding, accepted in
Qantas Airways Limited v Transport
Workers’ Union of Australia
[2021] FCA 1136
(at [9]) that:
... any delay in the trial of the reinstatement aspect
of the case will be prejudicial to the [Union]. There is a real risk that
the
relief to which it will be entitled will be imperilled the
longer that it takes to determine the question of
reinstatement.
4 After hearing full argument, I have concluded it is appropriate to
determine the issue of the entitlement to the “global”
reinstatement
relief sought and pressed by the Union and, notwithstanding the detailed
submissions made on behalf of the parties,
to deliver judgment immediately. In
addition to not imperilling this aspect of the relief sought by delaying
adjudication, this course
is appropriate for four further reasons.
5
First
, we are deep into Advent and it is in the interests of all
persons affected by the relief sought in this case to have clarity as
to their
position prior to the imminent long Court vacation. Leaving aside the
consequences for the parties, the result has potentially
significant
consequences for the 1683 outsourced employees and their families; particularly
those who earnestly desire a return to
work. I have interrupted a part-heard
matter which runs to Christmas Eve to hear this matter, and unless I deliver
judgment immediately
it will not be delivered prior to the end of the year.
6
Secondly
, the delivery of judgment now will provide the opportunity
for the disappointed party to seek to have any appeal from the orders
I will now
make, determined at the same time as the current application for leave to
appeal. Needless to say, it is ultimately a
matter for the Full Court as to
whether or not it wishes to determine the application for leave to appeal and
any appeal from the
primary order made at this Reinstatement Hearing at the same
time as the appeal in respect of liability; but a speedy delivery of
judgment on
the reinstatement relief preserves this option for the Full Court.
7
Thirdly
, I have had the benefit of detailed and skilled written
submissions served in advance of the hearing by each party as to the law,
which
has allowed me, during the hearing, to focus on the evidence adduced and the
real issues that emerged at the Reinstatement
Hearing.
8
Fourthly
, following extensive oral closing submissions and a short
adjournment, I have now reached a clear view as to the merits of the global
restatement relief sought by the Union, and the outcome is not attended by
doubt.
9 I propose to divide the balance of these reasons into the following
headings:
B THE UNION,
STANDING AND CONSEQUENCES
C FACTUAL
FINDINGS
D THE APPLICABLE
LAW
E THE PROCEDURAL
HISTORY
F THE
UNION’S CONTENTIONS
G CONSIDERATION
H CONCLUSION AND
ORDERS
10 As can be seen, prior to coming to the relevant facts, it is useful to say
something about the basis upon which relief can, and
is, being sought by the
Union. In maintaining its claim, the Union is acting in what has sometimes been
described as a “representative
capacity” but, as I will explain,
this shorthand description tends to obscure the precise role it is performing in
seeking
relief, including the reinstatement relief, and the legal consequences
for outsourced employees of the grant or refusal of that relief.
B THE UNION, STANDING AND CONSEQUENCES
11
Section 539(2)
of the
Fair Work Act 2009
(Cth) (
FWA
) identifies persons who may apply for orders in relation to
contraventions of specified provisions. Item 11 of
s 539(2)
deals with
contraventions of
Part 3
-
1
of the FWA, including contraventions of
s 340(1).
An
“industrial association” has standing to seek relief in relation to
contraventions of
s 340(1).
The Union, of course, is an “industrial
association” as that expression is defined in
s 12
of the FWA.
12 The entitlement to make an application is, however, subject to
ss
540
and
544
of the FWA. The latter provision imposes a time limitation and the
former, by
s 540(6)
, imposes a pre-condition on the ability of an industrial
association to apply for orders under Div 2 of
Pt 4
-
1
, being that an industrial
association may apply for relief in relation to a contravention of a civil
remedy provision only if one
or other of two preconditions are established.
These are, relevantly, that: (a) the industrial association is affected by the
contravention;
or (b) the contravention relates to a person, and the person is
affected by the contravention and the industrial association is entitled
to
represent the industrial interests of the person.
13 It is common ground that the present proceeding was brought within time
and, at the very least, the Union is entitled to represent
the industrial
interests of persons affected by Qantas’ contravention.
14 Given that as at 31 December 2020, only 716 of the original 1820 affected
employees (of which 1683 were outsourced employees) were
members of the Union,
it is worth noting that the entitlement to represent the industrial interests of
a person does not require
that the person be a member of the relevant industrial
association. The fact that a person is
eligible
for membership of an
industrial association in accordance with its eligibility rules is sufficient to
make the industrial association
entitled
to represent the industrial
interests of the person: see
Regional Express Holdings Limited v Australian
Federation of Air Pilots
[2017] HCA 55
;
(2017) 262 CLR 456
(at 461 [1],
467–469 [25]–[28] and 472 [36] per Kiefel CJ, Keane, Nettle, Gordon
and Edelman JJ). It is common ground
the Union has an eligibility to seek relief
on behalf of all outsourced employees (irrespective as to whether they were, or
are,
members of the Union).
15 But the question of eligibility to bring an application is not the same
thing as identifying the
capacity
in which the application is brought.
The Union is seeking relief of a particular type. That relief was relevantly
framed in the amended
originating application as a “claim” by the
Union that Qantas do certain things including reinstate outsourced employees
(prayer 2A) and a “claim” by the Union for “[o]rders for
compensation for economic and non-economic loss”
(prayer 4). More detailed
relief of a similar nature is now specified in the Points of Claim filed on 25
August 2021. The Union’s
contention is that these proposed orders, if
made, would promote the purposes of the FWA by facilitating compliance with the
law,
including the statutory norm proven to have been breached. In this respect,
seeking the relief serves a perceived public purpose.
But the relief (if made or
refused) would also directly affect the interests of strangers to the
proceeding, that is, the outsourced
employees. Hence the forensic decision as to
what relief is sought can affect the interests of the outsourced employees. This
can
be seen most obviously by the fact that the Union sought an order (initially
only
if reinstatement is refused), that Qantas pay to third parties an
amount of money said to represent compensation for loss suffered
by those third
parties.
16 At first glance, it might be thought that to the extent it is acting to
progress such claims (including compensation for loss suffered
by the third
parties), the Union is performing a representative function, quite similar to
other representative functions known to
the law, being those described by the
High Court in
Tomlinson v Ramsey Food Processing Pty Limited
[2015] HCA
28
;
(2015) 256 CLR 507
(at 524 [40] per French CJ, Bell, Gageler and Keane
JJ):
... representation by an agent, representation by a
trustee, representation by a tutor or a guardian, and representation by another
person under rules of court which permit representation of numerous persons who
have the same interest in a proceeding. To those
traditional forms of
representation can be added representation by a representative party in a modern
class action.
17 But any such comparison needs to be carefully examined and not
decontextualised.
18 The Union is registered under the
Fair Work (Registered Organisations)
Act 2009
(Cth) (
FWRO Act
). It is a body corporate, separate and
distinct from its members: s 27. It acts in an independent capacity:
R v
Dunlop Rubber Australia Limited; Ex parte Federated Miscellaneous Workers’
Union of Australia
[1957] HCA 19
;
(1957) 97 CLR 71
(at 81 per Dixon CJ, Webb, Fullager,
Kitto and Taylor JJ). It is given standing in order to allow it to pursue its
legitimate industrial
objectives.
19 As French CJ, Bell, Gageler and Keane JJ noted in
Tomlinson
(at 524
[40]), each of the “traditional” forms of litigation
representation:
... is typically the subject of fiduciary duties imposed
on the representing party or of procedures overseen by the court (of which
opt-in or opt-out procedures and approval of settlements in representative or
class actions are examples), or of both, which guard
against collateral risks of
representation, including the risk to a represented person of the detriment of
an estoppel operating
in a subsequent proceeding outweighing the benefit to that
person of participating in the current proceeding.
20 There is no precise or comprehensive definition of the circumstances in
which a person is considered a fiduciary in their relations
with another, but a
fiduciary relationship is, of course, characterised by trust and confidence, and
a person will be in a fiduciary
relationship with another when and insofar as
that person has undertaken to perform such a function for, or has assumed such a
responsibility
to, another as would thereby reasonably entitle that other person
to expect that they will act in the other person’s interest
to the
exclusion of their own interest: see
Hospital Products Limited v United
States Surgical Corporation
[1984] HCA 64
;
(1984) 156 CLR 41
(at 96–97 per Mason J);
News Limited v Australian Rugby Football League Limited
[1996] FCAFC 870
;
(1996) 64 FCR 410
(at 538–541 per Lockhart, von Doussa and Sackville JJ). It is common
ground in this case that the Union is entitled to act
on its own account and in
its own interests (subject to the requirements of the FWRO Act) and is not
acting in the conduct of this
litigation as a fiduciary of any of its members or
the outsourced employees more generally.
21 But even absent characterisation as a fiduciary, the question of whether
some substantive obligation exists to the extent it is
dealing with the
interests of third parties by the Union, which has carriage of litigation
directly affecting
the interests of third parties (and whose interests it
says it represents) does not appear to me to have a straightforward answer,
notwithstanding the joint position adopted by the parties. It strikes me as
intuitively odd that any species of litigation representative,
even one with its
own distinct interests, is entirely at liberty to pursue its own interests in
litigation, even if those interests
directly conflict with the interests of
third parties in the same litigation (which in this case, as we know, includes
persons who
have no legal relationship with it). Whether equity could have some
role to play in this regard is unnecessary to consider for present
purposes. It
suffices to note that the complexity in identifying the metes and bounds of any
such obligation is evident in the admittedly
quite different context of the role
and the content of duties of a representative in Chancery representative
proceedings, or in class
actions under Pt IVA of the FCAA (or its cognates).
22 It is worth noting, however, that one aspect of the representative nature
of this case may be relevant: that is, how and if the
outsourced employees will
be
bound
by any determination in this proceeding as to their
entitlements. In this respect, reliance was placed by both parties on
Tomlinson
. In that case, the Fair Work Ombudsman had brought a case in
this Court alleging that a company had failed to pay Mr Tomlinson and
other
employees amounts owing upon termination of employment. An issue determined in
the proceeding was whether the company was the
employer of Mr Tomlinson and the
other employees. That issue was determined adversely to the company and orders
were made requiring
it to pay specified amounts to Mr Tomlinson and other
employees: at 512–513 [8]–[9] per French CJ, Bell, Gageler and
Keane
JJ. Mr Tomlinson subsequently brought a personal injury claim on the basis that
the company was not his employer and he was
employed by another entity: at
513–514 [10] per French CJ, Bell, Gageler and Keane JJ). The company
contended that Mr Tomlinson
was estopped from doing so by reason of the judgment
of the Federal Court. The High Court rejected the argument. In bringing the
Federal Court proceeding, the Fair Work Ombudsman was acting pursuant to a
statutory power to commence proceedings to enforce the
FWA and it did not
represent the legal interests of Mr Tomlinson in a sense which gives rise to an
estoppel (by seeking orders that
the company pay Mr Tomlinson and other
employees amounts which the company had failed to pay): at 525–526
[44]–[47] per
French CJ, Bell, Gageler and Keane JJ, and at 544 [114] per
Nettle J.
23 Neither party contends that the outsourced employees are privies of the
Union in any relevant respect. Irrespective of the existence
and content of any
obligations of Qantas to the outsourced employees in advancing the claims for
relief, no party suggests that the
affected third parties, as non-parties to the
litigation, are bound at law or in equity (such as would be the case by a s 33ZB
“statutory
estoppel” in a class action under Pt IVA of the FCAA or
in equity in a Chancery representative proceeding). This may have significance
at a later stage of this, or other, litigation. For reasons I will explain, it
may also have relevance in a case where, because of
some disentitling conduct by
the “representative”,
discretionary
relief should be denied
on the application of the “representative”, and yet the consequences
of the disentitling conduct
should not be visited on the persons represented. As
will become evident, this is not a far-fetched possibility (but one that
ultimately
does not need to be resolved in this case, for reasons I will
explain).
C FACTUAL FINDINGS
C.1 Background and Sources of Findings
24 Given: (a) the
considerable volume of unnecessary evidence filed on the liability hearing by
both parties and; (b) the complaint
by Qantas (which I considered without
foundation) that there was insufficient time for it to prepare evidence for a
hearing this
year, I required the legal representatives to attempt to agree upon
all relevant non-contentious facts prior to any time being spent
preparing
evidence that would be the subject of dispute. To ensure that this process
worked efficiently, I made the following three
orders:
2. ... the legal representatives for the parties at the
Reinstatement Hearing are to confer, under the direction and supervision of
a
Senior Judicial Registrar of the Court, and attempt to agree on and produce a
document entitled “Agreed Facts” (
Agreed Facts
) which, in
narrative form, identifies relevant facts in respect of which there is agreement
or no contest between the parties (
Conferral
).
3. The legal representatives for the parties participating in the Conferral are
to do so in good faith and consistently with their
obligations under Pt VB of
the Act (including by assisting in facilitating the narrowing of issues by
providing informal production
of documents requested for a legitimate purpose).
4. The Conferral will continue until the Senior Judicial Registrar forms the
view that it should be concluded ...
25 A statement of agreed facts was prepared and a final version provided to
the Court (and was admitted as Exhibit A on the Reinstatement
Hearing) with each
fact being an “agreed fact” within the meaning
s 191
of the
Evidence Act 1995
(Cth) (
EA
).
26 The document is a useful one and, subject to one matter to which I will
make reference below as to the effect of those agreed facts,
the parties and
those that advise them should be commended for the constructive way they engaged
in the conferral and drafting process,
which was consistent with their duties to
narrow the scope of the factual issues required to be the subject of affidavit
evidence
or the tender of documents.
27 I will divide the balance of this section of my reasons into three parts:
first
, I will provide a broad summary of the facts found in accordance
with the agreement of the parties;
secondly
, I will detail my approach to
one aspect of the Union’s evidence; and
thirdly
, I will set out
additional factual findings I make on the basis of the evidence admitted. To
these facts must, of course, be added
the facts found in my previous judgments
(to the extent that they are relevant). In this last regard, unsurprisingly
given the nature
of the relationship between Qantas and the second respondent
(
QGS
), it was not suggested that QGS ought not to be bound by the
findings made prior to it being joined as a party.
C.2 Relevant Agreed Facts
28 The agreed facts are set out comprehensively and
in granular detail in the appendix to these reasons, which I find for the
purposes
of this proceeding. Drawing upon those detailed facts (and adopting the
definitions in the annexure), it is worth emphasising the
following nine
matters:
(1) Qantas Airports Ground Operations was a so-called “business
function” within Qantas and provided ground handling
services. Work
performed on Qantas aeroplanes represented around 73% of ground handling
activity within Qantas Airports Ground Operations.
(2) At the time of the outsourcing decision, by
outsourcing, Qantas estimated it could eventually achieve over $100m per annum
in
savings when compared to pre-COVID Ground Operations.
(3) If reinstatement relief was obtained as sought, Qantas would need to
re-create substantially its Qantas Airports Ground Operations
business, a course
that would include: (a) capital expenditure; (b) buying back ground services
equipment (
GSE
); (c) making lease arrangements; and (d) recruiting up to
50 ground operations executive managers across 10 ports. Further, a new
labour
model may also need to be designed to implement operational processes to support
an integrated work pattern involving third
party ground handling companies
(
contractors
) and QGS/Qantas employees performing the same work.
(4) Qantas has entered into contracts with the contractors for the provision of
ground handling services (Ramp and Baggage, and Fleet
Presentation) previously
performed by the affected employees at each of the Airports, but if those
contracts were terminated in accordance
with their terms, the contractors will
offer Qantas the option to purchase the relevant GSE.
(5) Qantas made an unprecedented $1.826 billion loss before tax for FY2021 and
has reported approximately $5 billion in cumulative
statutory losses for FY2020
and FY2021 (which is expected to grow).
(6) Qantas has raised in excess of $2.5b in debt and $1.4b in equity, and an
additional $0.5b in debt has been announced through
an unsecured bond placement.
This funding has been necessary to support the Qantas Group’s operations
through the COVID-19
pandemic, but has placed considerable pressure on its
balance sheet position.
(7) Flying activity has dramatically decreased and there have been ongoing stand
downs of employees in 2021 due to the ongoing impacts
of the pandemic. Given the
reduced flying activity and extent of the stand downs, had Qantas not decided to
outsource Ground Operations
in November 2020, Qantas and QGS would have stood
down large numbers of their ramp, baggage and fleet employees in 2021.
(8) Since the outsourcing of Ground Operations was implemented, Qantas has not
been required to make any capital expenditure in respect
of GSE for the Qantas
Airports business.
(9) Qantas continues to face serious financial and operational difficulties as a
result of the ongoing pandemic, and associated uncertainty
about the level of
future flying activity.
C.3 The Survey Evidence
29 The Union tendered what was described as a survey
“Summary Report” prepared by Mr Shane Compton who is a Senior
Research
Director, Quantitative Consulting Team at the Social Research Centre.
For reasons I will now explain, this evidence is problematical.
30 The solicitors for the Union, Maurice Blackburn, provided the Social
Research Centre with a list of survey questions which were
reviewed for the
purposes of administering an online survey. Following some revisions, the survey
was ultimately administered to
what were identified as 1806 “in-scope
workers”.
31 The evidence suggests that out of 1531 survey responses able to be used, a
total of 77.7% of affected employees supposedly indicated
that they wished to be
reinstated to their former position if the Court was to make an order for
reinstatement.
32 But this figure cannot be accepted uncritically for several reasons. The
first
is really a question simply going to weight and, in and of itself,
is not of great consequence. For reasons explained below, the
alternative of a
compensation order in a particular amount or a formula by which it could be
calculated, was not able to be presented
to the survey recipients. This was a
result of the forensic choice of the Union seeking a general reinstatement order
and (understandably)
pressing for a hearing on this primary relief not being
deferred until compensation could be estimated accurately following the hearing
of a number of “test” cases on compensation.
33 To understand the
second
reason to doubt the accuracy of the
survey, it is necessary to revisit, in some detail, the circumstances in which
the survey evidence
was obtained, and the oral evidence of Mr Compton.
34 Shortly after the delivery of the principal judgment, on 18 August 2021, a
case management hearing was conducted during which extensive
submissions were
made about the scope of a hearing to determine an appropriate remedy. During the
course of that exchange (at T16.1–9),
Mr Gibian SC, appearing on behalf of
the Union, foreshadowed that the Union was proposing to conduct a survey in
order to ascertain
the proportion of employees who wished to take up
reinstatement. I immediately responded that it was “fundamental” if
a survey was to ask individuals to make an election between alternative
remedies, that the employees understand clearly the nature
of their rights and
noted the difficulty of that being assessed “in a vacuum”, that is,
in advance of an idea of what
compensation would likely be awarded or how it
would be calculated. I noted that an employee may agree that reinstatement is a
good
idea in the abstract, but it would be difficult for the employee to
understand “the counterfactual”, that is, “if
[the employee]
was to obtain a compensatory remedy?”: T16.11–20. At that time, it
was clear that the Union was seeking
reinstatement as the primary remedy and was
only seeking an order for compensation on behalf of the outsourced employees in
the event
that the reinstatement order was refused.
35 Following that case management hearing, I ordered that the Union file a
“Points of Claim” document, accompanied by
a document which, in the
light of my comments, set out how the Union considered that any relief hearing
should take place, including
whether individual claims of persons alleged to
have suffered loss should be determined at the same time as the global
reinstatement
order was sought.
36 Such a document was filed, and a global reinstatement order was pressed as
the primary relief and the Union contended that such
a hearing should take place
as soon as practicable. The Union also foreshadowed that at such a hearing it
would lead evidence in
support of reinstatement, including a survey of the
outsourced employees. At the case management hearing that occurred on 8
September
2021, I directed the attention of those acting for the Union to the
Survey Evidence Practice Note (GPN-SURV)
(
Survey Practice Note
),
noting that it would be appropriate for any survey to be conducted by somebody
who was independent of the parties to preserve the
integrity of the survey
process, and that any information and instructions given to the survey
participants or any person who will
administer the survey instrument, occurs as
contemplated by [3.2] of the Survey Practice Note: see T27.11–21. I
further noted
that if the Union intended to seek to adduce survey evidence, it
ought to proceed in the orthodox way, which would mean that it is
more likely to
be admissible and that “[there is] a reason why the [Survey Practice Note]
has developed this procedure, to
preserve the integrity of any survey
evidence”: T27.28–29.
37 On 22 September 2021, a Survey Notice was served by Maurice Blackburn,
attaching, as Annexure A, a copy of the proposed instrument.
On 29 September
2021, Qantas provided a Responding Notice which noted asserted deficiencies in
the principal survey question proposed,
including that it was unanchored to any
point in time and that:
... there is no meaningful context and information for
[outsourced employees] to weigh up the value to them of participating in the
Reinstatement Option as opposed to taking up the alternative remedy of
compensation. As Qantas has stated on numerous previous occasions,
at this early
stage where there is no relevant information as to the amount of the
Compensation Option ([outsourced employees] are
more likely interested in the
likely amount for compensation, rather than a theoretical (and lawyered) formula
as to how that amount
may be calculated), how can any [outsourced employee]
express any preference which has any probative value?
38 In any event, what then appears to have happened is that the solicitors
for the Union had a series of communications with Mr Compton,
including as to
the proposed content of the survey design. The involvement of the solicitors, in
part, went beyond the role contemplated
by the Survey Practice Note at [4.5]. It
would have been better, of course, to provide the Survey Notice and the
Responding Notice
to an independent survey administrator and to allow him to
design and administer the survey. This is not a case where there was ever
any
doubt as to what was the relevant question.
39 More specifically, when Mr Compton gave evidence, it became apparent
that:
(1) He considered his client was the solicitors for the Union, Maurice
Blackburn, and the Court was “irrelevant” in “terms
of the
contract and in terms of who [he] needed to get approvals from for the final
version of the questionnaire, the sign-off on
various pieces [of work]”
and the client who would be “signing off or approving” the conduct
of his task: see T187.10–26.
(2) He was given a draft survey instrument by the solicitors for the Union; it
comprised a “Part A – Explanatory Memorandum”
and a
“Part B – Survey”. He did not look at Part A in detail (nor
did he comment upon it or edit it) because he
thought that this information
related to legal matters that had been set by the Court. Part A was presented to
him as information
the survey recipients needed to understand to complete the
survey: see T163.40–T166.5.
(3) Part A went into the survey material in the same form as it was provided to
him and he understood it was important that the survey
recipients read it. But
notwithstanding this, its importance, and the fact that the survey recipients
were asked to read the explanatory
material in Part A at the commencement of the
survey process, no part of his brief was to either review or comment on that
explanatory
material, nor provide advice as to its density or as to its likely
comprehension by the survey recipients. Indeed, to the extent
he turned his mind
to the material, he expressed the view that “it was long”:
T200.16.
(4) He also understood his task was for the survey recipients to express a
preference or choice for them to be reinstated
or
be compensated; he did
not understand that the option for reinstatement involved an “opt
out” option. When he considered
the survey questions he understood he was
conducting a review “only about reinstatement” and that compensation
was “not
really an option for people at the time of the survey” and
any compensation would only be known after the survey (which he
then sought to
make clear in the questions he settled): see T168.41–45; T169.15–18;
T170.23–T171.5.
(5) A version of the survey was sent to Mr Compton on 23 September 2021; a
revised version was sent to Mr Compton by the solicitors
on 15 October 2021; and
on 20 October 2021, Mr Compton sent an email to the solicitors providing edits
and comments and an alternative
version of the principal question. The
solicitors had provided a “yes” or “no” answer to one
question concerning
reinstatement but Mr Compton considered that this was
“not balanced in the wording as it’s not giving equal
weight/representation
to the reinstatement option and the compensation
option”. He also asked the solicitors whether “an ambivalent
response
is possible or permitted” and noted at this time that he was
happy to discuss the comments he had made with the solicitors.
This apparently
occurred, and after a discussion with the solicitors, Mr Compton believed that
as compensation was not an option
available for the survey participants at the
time of the survey, and hence he thought the question ultimately asked (rather
than
a question along the lines he had proposed) was preferable.
(6) In short, the additional questions and the form of the critical question
initially proposed by Mr Compton to achieve optimal
balance and allow ambivalent
responses were not adopted following close involvement by Mr Compton’s
“client” in
the survey design process.
40 Although I consider that the solicitors acting for the Union no doubt
thought they were acting appropriately in relation to Mr
Compton and in
procuring the survey generally, the process adopted was not what I had in mind
when I made plain that I would be best
assisted by a survey, conducted by an
independent person and in accordance with the Survey Practice Note. If the
survey administrator
had been instructed optimally, it would have been for the
survey administrator to ensure that the survey, including the explanatory
material, was comprehensible and it would have been his job to settle upon the
most balanced survey possible, recognising that the
possibility of compensation
was on the table and that survey recipients were entitled to be ambivalent in
their responses.
41
Thirdly
, evidence was adduced of communications between the Union
and its members during the survey period which may have had the potential
to
skew the results of the survey. Contemporaneously with the commencement of the
conduct of the survey, the Union was communicating
with its members, including
as to the survey. In a document entitled “FAQ – Outsourcing Case
Remedies” (
FAQ Document
), sent by text to its members, the Union
represented, among other things, the following:
Remedy hearings and survey
With respect to General Protections claims, this will be the biggest remedy
decision ever in Australia with 2000 employees involved.
To help the Judge reach
a decision on reinstatement, workers who were outsourced are being surveyed by
the Social Research Centre,
with the following
options:
1. reinstatement and compensation
2. compensation only
(Emphasis added).
This survey is voluntary and anonymous. It will used as evidence in the Federal
Court to indicate to the Judge how many people want
to be reinstated to assist
the Judge in deciding whether to make orders for reinstatement.
If you choose reinstatement on the survey and the Judge makes orders for
reinstatement but you no longer want to be reinstated, you
will not be forced to
return to work. The court will then consider how much compensation you should be
awarded.
The TWU is seeking four separate remedies for our
members:
First, we are seeking reinstatement.
Reinstatement is the primary remedy if you have been unlawfully terminated. For
those members
that want to be reinstated, we are also seeking compensation for
loss of income up to their reinstatement.
Second, for members who do not want to be reinstated, we are seeking
compensation for loss of income since termination and into the
future.
Third, for all members (whether you choose reinstatement or not), we are
seeking compensation for non-economic loss. If the decision
by Qantas to
terminate you has affected your mental health, we are asking that you are
compensated for this.
Finally, we are seeking penalties against Qantas for the action it has
taken against each of you.
Q&A
...
What does reinstatement look like? Who will my employer be? Will I still be
covered by the same enterprise agreement? Will I be full
time or part
time?
If reinstatement orders are made and you want to be reinstated, you will be
reinstated to the same position you were in immediately
prior to your
termination. This means you will be employed by either QAL or QGS (depending on
who previously employed you), you will
be covered by the same enterprise
agreement that covered you during your employment and you will work the same
hours you were contracted
to work prior to your termination.
Reinstatement should look like you were never terminated.
What if I choose reinstatement in the survey and the court makes orders for
reinstatement but I no longer want to be reinstated because
my circumstances
have changed?
If you choose reinstatement in the survey and the Court makes orders for
reinstatement but your circumstances change or you change
your mind after you
complete the survey, you will not be forced to return to your old job and can
instead opt for compensation only.
...
What if I choose reinstatement, the court grants me reinstatement and then
Qantas make me redundant again?
Any decision by Qantas to make you redundant again shortly after or before your
reinstatement will be a breach of the court’s
orders.
Further, as you will be reinstated to the same position you were in prior to
your termination (together with a recognition of the
continuity of service),
Qantas will likely have to (for example) reengage its managers and reinstate its
previous operations as they
were prior to your termination - in other words,
reverse its decision. It would make little sense for Qantas to then make you
redundant
again once it has gone to this effort.
For avoidance of doubt, you would be entitled to a redundancy package based on
your years of continuous service as a result of any
unlikely decision by Qantas
to make you redundant.
...
**If your question is not answered in
this document please contact your delegate, or otherwise your TWU branch:
www.twu.com.au/contact.**
42 Further, remote meetings using the Zoom technology were held between
representatives of the Union and its members. This occurred
on 3 September, 17
September and 1 October 2021 (the last of these meetings occurring after a case
management hearing conducted on
that day). The only evidence concerning what was
said at those meetings was given by Mr McIntosh and I will return to it below,
but
it is fair to say by reason of the document that was sent to members (and
the Zoom communications) that it must have been evident
to the survey recipients
who received those communications that the Union strongly favoured reinstatement
and that there was apparently
no binary choice between reinstatement or
compensation, but rather, what was highlighted was a choice between
“reinstatement
and compensation” or “compensation only”
(see the emphasis added in the extract of the FAQ Document above).
43 The FAQ Document is not literally inaccurate, although some aspects of it
(including the unqualified assertion that any retrenchment
shortly after
reinstatement would necessarily be a breach of the Court’s orders) puts
the matter too highly. All in all, however,
it seems to me evident that anyone
receiving communications during the course of the survey period, or who took up
the express invitation
to contact a Union delegate or a Union branch, would
likely have received the message that reinstatement was the best option for
a
survey recipient and that reinstatement could be chosen, safe in the knowledge
that a survey recipient would “not be forced
to return to work”.
44
Fourthly
, someone identifying themselves as “Desiree
Sheets-Chavolla” posted the following comment on Facebook:
Hi All
This status is for anyone who was made redundant from Qantas Ground Operations
this past year.
Today we had another win in Federal court [
sic
] with regards to
reinstating our jobs that were illegally outsourced by Qantas.
The TWU has asked: if you know people involved in this case (who were made
redundant) who haven’t received any comms from the
TWU this week, please
ask them to send their name, email, phone number and state to ***
[email protected]
***
The Courts are [
sic
] sending out a reinstatement survey and we NEED
everyone to say they are interested in REINSTATEMENT regardless of if you are or
not interested in going back to work for Qantas.
This is non-binding and after we win reinstated [
sic
] you can opt for
compensation instead of going back.
We need this survey to reflect that 90% of the redundant work force didn’t
want this and want their jobs back.
(Emphasis in original).
45 It appears that there were 78 “likes” and 39
“comments” to this social media post (
Initial Post
).
46 From the exchange of comments, the following excerpts are significant. In
response to a query by someone identifying themselves
as “Sophia
Vellis” asking “Do you know when we are going to receive the survey?
[smiley face emoji]”, “Desiree
Sheets-Chavolla” commented:
Sophia Vellis
please share with any and everyone
you know that might need this information [prayer
emoji]
47 To this comment, “Sophia Vellis” responded:
Already did [winking face emoji] all waiting for the
email
48 Then followed an exchange between persons identifying themselves as
“Nick Bashford”, “Catherine Rose”,
“Desiree
Sheets-Chavolla” and “Tom Hauseman” (underline representing
who posted the comment or reply, and
bold representing where a person was
“tagged”):
Nick Bashford:
All I say is good luck Because [
sic
] who wants to pay there redundancy
back. If things chance and qantas [
sic
] has already sold off their ground
equipment to the other ground handlers.
Catherine Rose:
Nick
they may not have to if they’re rewarded compensation and
their jobs.
Nick Bashford:
Catherine Rose
all the ground equipment has been sold off and most of the
stud is broken own anyway. Me personally I just want compensation and
that’s it and move on. Unfortunately the old days have long gone now.
Desiree Sheets-Chavolla
:
Nick Bashford
understandable but you could do your part to help out your
fellow workmates who might want their job back. You can still opt for
compensation only after the judges [
sic
] sees 90% want reinstatement. As
for paying back the redundancy money some people would have been jobless and
needed their redundancy
payment to support themselves so that will be worked out
during the compensation part of the court award. Right now the judge will
make
his ruling on reinstatement after the surveys. So please put your bitterness
aside and help us who really want to continue our
careers in aviation. Thank you
[prayer emoji]
Nick Bashford:
Desiree Sheets-Chavolla
sorry I will not be filling it out.
Tom Hauserman:
Nick Bashford
. [
sic
] Mate you want compensation? That’s the
whole point of the survey. You need to fill it out. Then you opt out not to take
your
job back and then claim compensation. There will be no paying back of
packages!
49 Further on in the chain of comments “Pasquale Ardino” returns
to this saying:
Make sure Twu [
sic
] has your details if you were
made redundant. The goal is to push for reinstatement, even if you don’t
want your job back.
The [
sic
] have to tackle that first before seeking
compo , [
sic
] So the judge can make his decision. Surveys will go out
soon so stick together. Good onya [
sic
]
Desiree Sheets-Chavolla
[thumbs-up emoji]
50 “Catherine Rose” responded:
Pasquale
couldn’t say it better, stick
together and help your union win.
51 Further on, in reply to another “post” seeking to
“clarify” the position with respect to reinstatement,
a person
identifying himself as “Tony Tsiamis” continues this discussion,
responding to a comment of a person identifying
himself as “Peter
Inches”, questioning “What about if don’t [
sic
] want to
go back to your job and moved on ...”:
Peter Inches
Put down you want to get reinstated
then if the time comes you can say no to going back
52 Desiree Sheets-Chavolla then made another post on 29 October 2021 (which
gained 22 “likes”), stating:
Hi Guys,
Please check your emails for the Qantas/QGS REINSTATEMENT court survey.
Also, check your junk mail.
If you have not received the Survey from SOCIAL RESEARCH CENTRE by November 4th
please ring TWU on 02 8114-6500 or by email on
[email protected]
to update your
contact details.
Also guys can I encourage everyone to prioritize the reinstatement and answer
YES to the section about being reinstated to your QGS/QAL
role.
This is a non binding survey.
Unanswered surveys will not be counted.
53 Shortly before the Reinstatement Hearing, Qantas and QGS identified that
they were seeking the following factual findings about
these Facebook posts:
Facebook post and comments –
Findings of fact regarding purpose
1. That on or about 1 October 2021 Ms Desiree Sheets-Chavolla made a post to the
Facebook Group (i.e. Appendix 5) (the
Post
).
2. By making the post, Ms Sheets-Chavolla encouraged
Affected Employees to respond to what she knew was a Court-directed
reinstatement
survey to the effect that they want to be reinstated regardless of
whether they were interested in returning to work for Qantas or
QGS (as the case
may be).
3. In the week beginning 4 October 2021, Ms Sheets-Chavolla encouraged Ms Sofia
Vellis to share the Post with other Affected Employees
(see Appendix 6).
4. In the week beginning 4 October 2021, Ms Sheets-Chavolla made various
comments in relation to the Post to a similar effect to
(
2
) above (see Appendix 6).
5. Ms Sheets-Chavolla’s purpose in doing each of the things above was to
artificially inflate the number of Affected Employees
who responded to the
survey in the affirmative.
6. The [Union] encouraged, solicited or incited Ms Sheets-Chavolla to do each of
these things with that purpose.
7. In or before the week beginning 4 October 2021, Sofia Vellis shared the
Post.
8. In the week beginning 4 October 2021, Tom Hauserman made a comment in
relation to the Post to a similar effect to (
2
) above (see Appendix 6).
9. In the week beginning 4 October 2021, Pasquale Ardino made a comment in
relation to the Post to a similar effect to (
2
) above (see Appendix 6).
10. In the week beginning 4 October 2021, Catherine Rose made a comment in
relation to the Post to a similar effect to (
2
) above (see Appendix 6).
11. In or around the week beginning 18 October 2021, Tony Tsiamis made a comment
to a similar effect to (2) above (see Appendix 8).
54 Given the seriousness of the findings sought by Qantas and QGS, on 8
October 2021, in order to provide procedural fairness to the
six persons
identified above alleged to have made Facebook posts or comments, I ordered that
they had leave to: (1) appear on their
own behalf or by a legal representative
(if they wished to do so) at 10:15am on 15 December 2021 at the Reinstatement
Hearing and
(subject to any claims of privilege) to file, prior to 5pm on 14
December 2021, any affidavit evidence they wished to rely upon (if
any) as to
any involvement they had (if any), with the making of any of the Facebook posts;
and (2) to make any application to vacate
the order made in their absence. I
also ordered that the Union provide verified discovery of any document directly
relevant to the
factual issue that it encouraged, solicited or incited Ms
Sheets-Chavolla to inflate artificially the survey recipients who wished
to opt
for reinstatement.
55 The apparent makers of the Facebook posts obtained independent legal
representation, and their solicitor informed the Court on
the second day of the
hearing that they did not intend to file any affidavit material nor appear at
the time indicated in the orders,
notwithstanding notification of the findings
sought by Qantas and the leave being granted to them. Further, no documents were
produced
in answer to the order for discovery. In saying this, I should note
that no documents were sought to be produced (for example, by
way of texts or
other messages) between identified officials of the Union and the apparent
makers of the Facebook posts or between
the apparent makers of the Facebook
posts. The only evidence given relevant to the issue of the Union’s
involvement was by
Mr Nicholas McIntosh who, since August 2018, has been the
Assistant National Secretary of the Union. He deposed that he was unaware
of any
relevant contact between the alleged makers of the Facebook posts and any Union
official: see T90.1–T91.3.
56 In the absence of any evidence other than the Facebook posts themselves
and the surrounding circumstances (and having regard to
the seriousness of any
finding as required by
s 140(2)
of the EA), the following findings should be
made on the balance of probabilities as to the Facebook posts:
(1) That a Union activist, Ms Desiree Sheets-Chavolla made the Initial Post to
the relevant Facebook group, which likely involved
a publication to a number of
persons who were survey recipients and she did so on 1 October 2021, being the
same day the evidence
reveals she attended the “Zoom” meeting with
representatives of the Union at which the survey was discussed.
(2) By making the Initial Post, Ms Sheets-Chavolla encouraged some outsourced
employees to respond to what she must have known was
a Court-directed
reinstatement survey to the effect that they want to be reinstated regardless of
whether they were interested in
returning to work for Qantas or QGS (as the case
may be).
(3) In the week beginning 4 October 2021: Ms Sheets-Chavolla encouraged Ms Sofia
Vellis to share the Initial Post with other outsourced
employees and made
various additional comments to a similar effect; and Mr Tom Hauserman, Mr
Pasquale Ardino, Ms Catherine Rose and
Mr Tony Tsiamis made a comment to a
similar effect.
(4) In or before the week beginning 4 October 2021, Ms Sofia Vellis shared the
Initial Post.
57 Additionally, evidence was adduced from a manager of Qantas, Mr Rodney
Hollingworth establishing that the makers of each of the
relevant posts were
outsourced employees (although the position is not entirely clear in respect of
Ms Rose).
58 This leaves for consideration the additional findings initially sought by
Qantas and QGS that: (1) Ms Sheets-Chavolla’s purpose
in doing each of the
things above was to inflate artificially the number of outsourced employees who
responded to the survey in the
affirmative; and (2) the Union encouraged,
solicited or incited Ms Sheets-Chavolla to do each of these things with that
purpose.
59 As to (1), a finding as to the purpose of Ms Sheets-Chavolla is not
determinative of any issue currently before me at the Reinstatement
Hearing and
given its nature, unless a finding was required, I do not propose to make it.
60 As to (2), whatever misgivings or suspicions arise because of: (a) Ms
Sheets-Chavolla’s apparent previous interest in, and
involvement with the
proceeding, including speaking to the media; (b) her apparent desire to support
the perceived interests of the
Union; (c) her role as an activist within the
Union; (d) her participation at the Zoom meeting held on 1 October 2021; (e) the
fact
that the survey was spoken about at the meeting on 1 October 2021; and (f)
the wishes of the Union to promote reinstatement as a
remedy, I have not reached
a level of reasonable satisfaction that the Union encouraged, solicited or
incited Ms Sheets-Chavolla
to act in the way alleged. As it turned out,
reflecting the reality of the evidence on this point, a finding in these terms
was not
ultimately pressed by Qantas and QGS in final address.
61 In any event, I do not consider I should reject the evidence of Mr
McIntosh in this regard. Although I have some reservations about
how I should
accept at face value the completeness of Mr McIntosh’s evidence given his
previous affidavits (a topic I will
turn to below), on the evidence adduced, it
is not established that the Union encouraged, solicited or incited Ms
Sheets-Chavolla.
I am somewhat comforted in reaching the conclusion that nothing
untoward would have occurred at the Zoom meeting on 1 October 2021
because of
the presence of the Union’s junior counsel at that meeting. Indeed, it
seems to me it is inherently improbable a
representation designed to skew the
survey would have been made at a Zoom meeting without some comment being made by
any responsible
or competent counsel cautioning against such a foolhardy and
injudicious course. As to any encouragement or incitement occurring
at another
time by the Union or its officials, the evidence is far too speculative to
sustain a finding of such seriousness.
62 In the light of all this, what am I to do with the survey?
63 No objection was taken to the survey evidence that it was not relevant
within the meaning of
ss 55
and
56
of the EA on the ground that there was an
insufficient basis to consider the results of the survey were sufficiently
reliable and
accurate in the light of the communications identified above made
to survey recipients prior to, and during the course of, the survey.
Nor, as
surprising as it may be, was
s 135
of the EA called in aid to seek the
discretionary exclusion of the evidence in circumstances where there was
apparently some departure
from the requirements of the Survey Practice Note
combined with the communications made by the Union and the wholly inappropriate
Facebook posts.
64 The submission of Qantas and QGS was that the survey process (which had as
its foundation in Mr Compton’s mind that “only
one option was
available”) miscarried. This submission should be accepted. Although the
explanatory information a survey recipient
would have seen was literally
accurate, it was long (as Mr Compton accepted), and it was also dense. Mr
Compton was not asked, nor
did he advise, on its ability to be comprehended.
What matters is that the survey design was arrived at through a process of
deliberation
over which the solicitors for the Union were heavily involved, the
critical question in the survey lacked sufficient balance, and
the survey is now
clouded by the additional communications directed to at least some of the survey
recipients which, quite plausibly,
could have skewed the results. Because of the
factors set out above, I am not satisfied that the survey, which became Exhibit
B,
has accurately captured a genuine choice between outsourced employees as to
whether they prefer the possibility of reinstatement
and the possibility of
compensation.
65 Hence, I am not satisfied I can rely on the accuracy of the results of the
survey.
C.4 Additional Findings
Outsourced Employees called by the Union
66 Mr Graeme Dowie, a
member of the Union and a longstanding Qantas employee, gave unchallenged
evidence as to his employment history,
the impact of the pandemic upon him, his
qualifications and employment expectations, and the deleterious effect of his
retrenchment
as a 56 year old man. Mr Dowie also gave evidence, which I accept,
that he had pride in his work and that he wishes to be reinstated
to his
position at Qantas.
67 Mr Anthony Bates, a 61 year old Sydney family man with two dependent
children, also gave evidence. He was another member of the
Union and
longstanding Qantas employee starting in 2001. He gave evidence he expected to
see out his working days at Qantas. He was
frustrated, angry and disappointed by
the outsourcing. His job was important to his social interactions. He was
offered a job swap
but he did not want to perform any job with a
“graveyard shift” (8pm to 6am). He received a payment upon
redundancy which,
including all his substantial statutory entitlements, was in
the order of $100,000 to $120,000, and he is currently receiving approximately
$1,500 per week in workers’ compensation payments. I accept that Mr Bates
has been affected adversely in a significant way
by his retrenchment and he
wishes to be reinstated to his former position, which he enjoyed.
68 Mr Kim Mason, another Union member and a 44 year old former Qantas
employee, gave similar evidence, which I accept, as to his intentions
as to
employment, his lack of formal qualifications, his devastation at the decision
to outsource, the fact he was not offered any
other permanent position within
Qantas, his pride in his work and the impact of the outsourcing decision upon
him. His last day was
16 March 2021. He was clearly upset while giving evidence
and, unfortunately, is struggling in coping with his circumstances. He
struck me
as representative of the likely non-financial consequences of the outsourcing on
many of the outsourced employees. Happily,
he has now secured a job, but it is
one which requires him to live remotely, some 250kms away from his family. It
does not take much
imagination or empathy to understand the strain that would
put on a father separated from his family, and upon his family generally.
He was
offered a job swap or redeployment or retrenchment (although it appears he had
somewhat limited information about the details
of any job swap or redeployment).
He chose retrenchment because he was concerned he would walk away with nothing,
because of his
then concerns about the future of the aviation industry. He
strongly wishes to be reinstated.
69 All of this evidence was consistent with what one would have thought
intuitively as being the human cost of the outsourcing decision
and the impact
of retrenchment on those that had laboured for Qantas and QGS, some for a very
long period of time.
The Union Official called by the Union
70 Mr Nicholas McIntosh who, as noted above, is the
Assistant National Secretary of the Union, relevantly gave evidence, which I
generally
accept, as to the following:
(1) Qantas and QGS and the contractors were all put on notice of the relief that
the Union was seeking in this proceeding before
the implementation of the
outsourcing decision and that this might affect their contractual arrangements
with Qantas.
(2) A consequence of the outsourcing decision on the membership of the Union has
meant that in practical terms it has lost the ability
to call upon the
continuing work of experienced delegates who had been extensively trained
(sometimes over some years) by the paid
officials of the Union.
(3) There is limited or reduced ability to bargain for enterprise agreements to
replace the Qantas Airways Limited and QCatering
Limited – Transport
Workers Agreement 2018 (
QAL Agreement
) and the Qantas Ground Services Pty
Limited Ground Handling Agreement 2015 (
QGS Agreement
) or to organise and
take protected industrial action in support of any claims in bargaining.
(4) Outsourced employees who have taken positions with the contractors are
employed, in the opinion of Mr McIntosh, on inferior terms
and conditions of
employment to the terms and conditions of employment under the QAL Agreement and
the QGS Agreement. In this regard,
the Union has fewer members employed by the
contractors than at Qantas and QGS and its density of members is lower. The
Union has
a difficult relationship with one of the contractors, Swissport,
which, in the opinion of Mr McIntosh, has a workforce which is highly
casual and
has had a high turnover. This will mean that outsourced employees who remain in
the industry will have less favourable
terms and conditions of employment and
will be in a weaker position to better their circumstances. Further, some
employers in the
ground handling industry, Swissport in particular, have what
appears to be a hostile relationship with the Union.
(5) If reinstatement orders were made, the Union would attempt to cooperate with
Qantas in seeking to reinstate outsourced employees
to their positions including
discussing with Qantas efficiencies in the conduct of work as it has done in the
past with both Qantas
and other participants in the aviation industry.
71 An issue as to the credit of Mr McIntosh was raised at the Reinstatement
Hearing. Mr McIntosh gave evidence on affidavit at the
liability hearing as to
the density of Union membership. But it is evident that the records of the Union
as to membership have been
held in such a way that there has been (at best) some
very real confusion as to the percentage of affected employees who were members
of the Union at the time the outsourcing decision was made (although the number
of outsourced employees who are Union members as
at 31 December 2020 is now, at
the Reinstatement Hearing, an agreed fact). Important caveats on the accuracy of
information previously
given to the Court as to the number of affected employees
who were Union members emerged during cross-examination at the Reinstatement
Hearing. On 6 May 2021, submissions were filed with the Court asserting, in
effect, that approximately 1,818 of a little less than
2,000 employees were
Union employees as at 31 December 2020. This was a significant overstatement of
the true position and this misrepresentation
of the position should not have
occurred.
72 It now appears that the affidavit evidence relied upon at the liability
hearing as to Union membership was inaccurate, although
there was no
cross-examination on this topic at the liability hearing, and the percentage of
affected employees who were Union members
was not determinative of the result at
that hearing (as it happened). It will be recalled that I was critical of the
affidavit evidence
filed by Qantas at the earlier hearing, and it now appears
that a lack of proper attention to presenting a complete picture in the
written
evidence was not restricted to evidence adduced by one side of the case. Despite
all this, and although it causes me a degree
of disquiet, the evidence given by
Mr McIntosh generally accorded with the inherent probabilities and my concerns
about this issue
have not caused me to disbelieve his evidence generally.
The Qantas Employees called by Qantas and QGS
73 Mr Colin Hughes gave evidence as to the
redundancy process, a timeline as to creating a new ground operations business,
and the
perceived benefits of the outsourcing decisions as meeting the so-called
“three imperatives” of Qantas as referred to
in the principal
judgment (at 302 [117]).
74 Mr Andrew David gave evidence including as to: (a) Qantas’s current
activities; and (b) the steps necessary to re-establish
a ground operations
business and its perceived lack of commerciality.
75 The evidence given by these witnesses was generally consistent with the
inherent probabilities, including the fact that Qantas
would do all it could to
minimise the costs of ground handling to the extent it could do so, and that all
relevant decisions it would
make would be informed by reducing the costs of
ground handling. The oral evidence at this hearing did not suffer from the vice
of
artificiality or overzealous preparation apparent in so much of Qantas’
evidence at the liability hearing. Although there was
close cross-examination on
credit, particularly in relation to Mr Hughes, I do not consider that the
cardinal aspects of the evidence
of the witnesses was undermined in a
substantial way, and from this evidence, it is appropriate to make the following
findings:
(1) The last six months have been one of the worst financial periods in the
history of Qantas, which has caused the stand-down of
10,000 employees since
August 2021. An extraordinary revenue loss of $20 billion has been incurred
since the beginning of the pandemic.
The focus of Qantas moving forward is
seeking a return to normality when it can, and on reducing costs and preserving
liquidity.
It has committed to a three year recovery plan.
(2) The perception of those responsible within Qantas is that the outsourcing
has performed well in terms of savings and safety;
indeed Qantas now estimates
that by the end of the 2023 financial year it will secure savings of
approximately $125 million per annum
by reason of the outsourcing of its ground
operations.
(3) Apart from an estimate prepared by Mr Hughes of a timetable for implementing
the reinstatement of outsourced employees (as reflected
in Ex 1, p 200), which
estimated a 28 week period from the end of the opt out period following a
reinstatement order (
reinstatement timetable
), no detailed planning has
been done to date for a reinstatement of outsourced employees because: (a) in
the abstract, and without
understanding the number and location of reinstated
employees, it is impossible to understand the future shape and scale of the new
ground handling operation that would be required; (b) it was considered
commercially prudent not to raise the uncertainty at this
time with the
contractors, including any possibility for the need to purchase GSE (a somewhat
curious notion given the contractors
would not be ignorant of the risk
reinstatement could be ordered); and (c) the attention of senior managers has
been focussed on
the exigencies of the continuing disruption caused by the
pandemic.
(4) Although the reinstatement timetable prepared (in consultation with
industrial relations specialists and solicitors) might be
thought to be one that
in some respects is somewhat bureaucratic, and involves processes which one
might intuitively or superficially
have thought could be truncated, it is clear
from his oral evidence that Mr Hughes had thought carefully about each component
of
the estimates relating to “Recruitment and Training” and
“Asset Selection & Introduction” and had fastened
upon his
estimates conscientiously. It is safe to conclude it will be a lengthy and
complicated exercise which depends, in part,
on negotiation with, and the
co-operation of, third parties, including a monopoly lessor and obtaining GSE
from the contractors,
and procurement of any required (and available) new GSE.
Mr David’s admittedly broad-brush estimate based upon his general
experience in the aviation industry was considerably longer, and gives no
confidence the timeline identified by Mr Hughes could be
truncated.
(5) 2,000 persons are needed to perform the necessary work and if, as seems
certain, there would be insufficient reinstated employees
to do the work, it is
quite clear that instead of recruiting further employees as ground handlers,
Qantas has decided it would be
in its commercial interests to put in place a new
labour model to implement new operational processes to support an integrated
ground
handling model (with employees of a contractor and reinstated employees).
Such a new and largely untried model of dealing with ground
handling might
create some risk of complication, although this is far from certain.
(6) Although it is impossible to be definitive as to timing and process of any
retrenchments after any reinstatement, it is evident
that Mr David is of a fixed
cast of mind, communicated orally to Mr Hughes, that “he would not
re-create the business and would
continue to receive the ground handling
services from the ground handling providers”, that is, contractors: see
T335.28–T336.3.
It is manifest that the subjective view of those with
responsibility within Qantas is that the savings secured by outsourcing are
highly significant, and that there is no prospect whatever of that subjective
view changing in the foreseeable future. Indeed, the
firm intention of Mr David,
the man responsible for making the decision, is that any reinstated employees
would be retrenched as
soon as Qantas considered it could lawfully do
so.
76 It is also convenient here to make a further finding as to the intentions
of Qantas (which emerged during final address). Qantas
and QGS had expressly
agreed with the Union and admitted for the purposes of this proceeding that
“in order for [Qantas and
QGS] to comply with global reinstatement orders
of the kind sought in [prayers] 1 to 5 of the [Union’s] Points of Claim
dated
25 August 2021, Qantas would need to [re-create substantially] the Qantas
Airports Ground Operations business”. One would have
thought such a
concession was as clear as a mountain stream. If an order was made of a certain
character, then Qantas and QGS would,
as a matter of fact, be required to do
certain things. Qantas and QGS relied upon these certain things, that is, the
re-creation
of a ground operations business as constituting a powerful
discretionary consideration as to why the reinstatement order
ought not
be made. In these circumstances, it was perplexing to be confronted by a
submission made on behalf of Qantas and QGS that if a reinstatement
order was
made, Qantas and QGS “don’t accept at all” (at T440.25) that
it would be necessary, in order to comply
with that order, that Qantas and QGS
would need to re-create substantially its Qantas Airports Ground Operations
business.
77 After reflecting on this curious submission, I raised with senior counsel
for Qantas and QGS what I was supposed to do with it.
On one view it seemed to
me that Qantas and QGS were saying that although they relied heavily upon the
prejudice of being forced
to re-create a ground operations business, the case in
final submissions had transformed, and they were now saying that if an order
for
reinstatement was made, Qantas and QGS “don’t accept at all”
that they were required to take the steps relied
upon to make out that
prejudice. This made, and still makes, no sense to me. It appears, however, that
although there was an acceptance
that if ordered to do so Qantas and QGS would
need to re-create the Qantas Airports Ground Operations business, they did not
want
to admit that this would be the practical effect of a reinstatement order
and would be a step necessary to take to comply with the
order (even though, in
terms, this is what they had already admitted as reflected in Exhibit A).
78 Although this submission stuck me, at best, as somewhat Gilbertian, what I
do take away from it is that it presages the reality
that Qantas and QGS will
take advice as to the precise obligations arising under any reinstatement orders
if made, and then do all
it can (within what it is advised is the law) to
maintain the perceived commercial benefits of outsourcing. The evidence could
not
have been clearer on this point.
79 I will return to the significance of these facts found below. But first I
will turn to the legal principles to be applied in considering
the relief
sought.
D THE APPLICABLE LAW
D.1 Reinstatement Generally
80 The power of the Court
to make non-penal remedial orders arises under s 545(1) of the FWA, and both
reinstatement and compensation
are specifically referred to in s 545(2) as
orders a Court may make. Section 545 appears, relevantly, as follows:
545 Orders that can be made by particular
courts
Federal Court ...
(1) The Federal Court ... may make any order the court considers appropriate if
the court is satisfied that a person has contravened,
or proposes to contravene,
a civil remedy provision.
(2) Without limiting subsection (1), orders the Federal Court ... may make
include the following:
(a) an order granting an injunction, or interim injunction, to prevent, stop
or remedy the effects of a contravention;
(b) an order awarding compensation for loss that a person has suffered because
of the contravention;
(c) an order for reinstatement of a
person.
81 As can be seen from its terms and its statutory context, s 545 is a wide
power allowing the Court to make any order that it considers
appropriate if it
is satisfied that a person has contravened, or proposes to contravene, a civil
remedy provision. Such a power to
make any remedial order under s 545(1)
involves, by the use of the word “may”, a discretion: see
s 33(2A)
of the
Acts Interpretation Act 1901
(Cth).
82 Given the breadth of the power, it allows the Court to fashion a remedial
response to the exigencies of any contravention or proposed
contravention,
taking into account relevant considerations informing the appropriate exercise
of discretion in an individual case.
Those relevant considerations are not
expressly confined, and are best identified and considered by reference to the
facts of each
individual case in which relief is sought. But the statutory
requirement that an order is “appropriate” highlights the
necessity
that any order is one the Court considers to be judicially appropriate, or
just.
83 During the course of a case management hearing on 8 September 2021, senior
counsel for the Union made the submission that the provisions
of the FWA that
Qantas has been found to have contravened have an important public policy
purpose of protecting employees from adverse
action as a consequence of the
exercise, or to prevent the exercise, of industrial rights. It was further said
that the principled
approach by reference to the authorities is that “in a
general sense at least, the proper vindication of that public interest
ought
[to] be satisfied by reinstatement orders being made”: T22.35–36. In
response to my request that senior counsel
identify the high water mark of those
authorities, counsel referred to
Bowling v General Motors Holdens Ltd
(1980) 3 ALR 297 (JB
Sweeney, Evatt and Northrop JJ) and
Construction,
Forestry, Mining and Energy Union v BHP Coal Pty Ltd (No 3)
(Jessup J).
84 The submission foreshadowed by the Union was later developed in the
following way.
85 The assessment of the scope, purpose and operation of the power conferred
by s 545(1) to order the reinstatement of employees in
circumstances where an
employer has contravened s 340 of the FWA and the contravention has led to the
dismissal of employees, requires
ss 340 and 545(1) to be considered together in
the light of the protective purpose of s 340(1)(b) and the context, including by
reference
to the settled historical understanding of the power to order
reinstatement (where an employer has been found to have contravened
the
predecessor provisions to s 340 (or s 346) of the FWA).
86 A number of provisions of
Part 3
-
1
of the FWA, including s 340(1)(b),
create norms of conduct by rendering illicit conduct taken for a proscribed
reason or with a proscribed
motivation or intention and determining that
breaches of those stipulated norms are “civil remedy provisions”.
Part 3
-
1
does not itself contain the power to make remedial, corrective or penal
orders in cases of breaches of civil remedy provisions. That
is the subject of
Part 4
-
1
of the FWA, in particular, s 545 and, in the case of penal orders, s
546.
87 The purpose of the norm found in this case to have been contravened, s
340(1)(b), is evident from its terms; namely, a person is
prohibited from taking
adverse action to prevent the exercise of a workplace right by another person.
Section 340(1)(b) relevantly
seeks to protect employees by prohibiting employers
taking adverse action against employees for the purpose of preventing them
exercising
a workplace right. The protective nature of the provision is
emphasised by s 336(1)(a), which details that one of the objects of
Part 3
-
1
is
to “protect workplace rights”. This object is directed, among other
things, to s 340(1): cf
Construction, Forestry, Maritime, Mining and Energy
Union v Australian Building and Construction Commissioner (The Bay Street
Appeal)
[2020] FCAFC 192
;
(2020) 282 FCR 1
(at 8 [13] per Allsop CJ, and at
20 [67] per Flick J);
Australian Building and Construction Commissioner v
Construction, Forestry, Mining and Energy Union (The Bay Street Case)
[2018]
FCA 83
;
(2018) 260 FCR 564
(at 587–588 [45]–[47] per Bromberg
J).
88 The protective nature of s 340 is also explained in the Guide set out in s
334 which states that
Part 3
-
1
provides “general workplace
protections” and that Division 3 (in which s 340 is contained)
“protects workplace
rights, and the exercise of those rights” (see
also
s 6(2)(a)
which describes
Part 3
-
1
in similar terms). Also relevant for
present purposes is s 336(1)(d), which identifies another object of
Part 3
-
1
is
to provide effective relief for persons who have been “adversely affected
as a result of contraventions of this Part”.
89 The Union stresses that what is appropriate for the purposes of s 545(1)
must be determined in the light of the purpose of the
“civil remedy
provision” contravened, including the subject matter, scope and purpose of
the provision. It is also said
that the non-exhaustive list of orders set out in
s 545(2) are significant in pointing to the purpose of s 545, namely, to address
or remedy the effects of a contravention of a civil remedy provision.
90 The Union submits that where an employer has taken adverse action contrary
to the norm stipulated by s 340, the question of what
order should be made
should be framed in the context of the protection which the contravener has
infringed. The relief granted should,
so far as possible, be effective
(consistently with the object set out in s 336(1)(d)) to ameliorate and remedy
the adverse consequences
flowing from the contravention of the particular
statutory norm.
91 Hence, the Union submits that, where employees have been terminated for
the purpose of preventing them from exercising workplace
rights under s
340(1)(b), effective relief to deal with and ameliorate such a contravention and
vindicate the protective purpose
of s 340(1)(b) will (subject to the employee
being willing and able to be re-employed) be to order reinstatement. In this
sense,
it is contended that the statutory context demonstrates that
reinstatement is the primary and presumptive remedy for contraventions
of
Part
3
-
1
which lead to dismissal of employees.
92 The Union drew from the decision of the Full Court in
Bowling
(which considered ss 5(1) and (5) of the
Conciliation and Arbitration Act
1904
(Cth) (
CA Act
)) the following five so-called “points of
principle”:
(1) Reinstatement would ordinarily be ordered where an employee is dismissed
contrary to s 5(1) of the CA Act, being the forerunner
to s 346 of the FWA and,
ultimately, s 340 of the FWA. Hence the presumptive or
prima facie
position was that reinstatement should be ordered.
(2) Although the power to order reinstatement was discretionary, it was a power
that fell to be exercised to vindicate the protective
purpose of the prohibition
against adverse action being taken in contravention of the norm of conduct
mandated by s 5(1) of the CA
Act.
(3) Unless an order for reinstatement were made, the protective purpose of s
5(1) of the CA Act would not be vindicated and the employer
would benefit from
its contravention by ridding itself of an employee or employees for one or other
prohibited reasons.
(4) Consistently with the presumptive or
prima facie
position,
reinstatement should be ordered absent “good reasons” (such as the
employee not desiring to be reinstated).
(5) An employer should not be able to benefit or profit from its breach of the
statutorily prescribed norm.
93 Consistently with this, the Union pointed to
Kerrin v Leighton
Contractors Pty Ltd
(1986) 16 IR 40
, where Keely J observed (at 45–46)
that counsel for the employer “accepted”:
... that the proper principles to be applied were those
set out by the Full Court in
Bowling’s
case
[1980] FCA 143
;
(1980) 50 FLR 79
;
33
ALR 297
and accordingly that, upon the conviction of the employer, prima facie
the court should direct the reinstatement of the employee.
However, he submitted
that that prima facie position changed “once evidence is led or argument
is advanced as to why the prima
facie position ought not apply.” He said
that the court should have regard to the reasons for judgment of Wilson J (with
whose
reasons Mason and Deane JJ agreed) in
Slonim v Fellows
[1984] HCA 51
;
(1984) 154
CLR 505.
That case dealt with the question whether a Conciliation and
Arbitration Board had jurisdiction under the
Industrial Relations Act
1979
(Vic) (
before
its amendment in 1983) to determine a claim for
reinstatement. Referring to the general powers of the Board under s 34(1) of
that
Act, Wilson J said (at 515):
“First, a clear distinction should be
drawn between employment of a person and reinstatement of a recently dismissed
employee.
As the court rightly observed, the power to direct that A employ B is
a very drastic one. It is not lightly to be inferred in the
absence of
compelling language.”
[Counsel for the employer] expressly refrained from
submitting that
Slonim v Fellows
“in any way cuts down the full
authority of
Bowling’s case
” (ie the Full Court judgment in
[1980] FCA 143
;
(1980) 50 FLR 79
;
33 ALR 297)
and said that the decisions in the two cases are
not inconsistent. Later in his address Mr Kaufman said “it may be that to
some extent
Slonim v Fellows
does in a practical sense cut across
Bowling’s case
”. In my opinion the dictum of Wilson J in
Slonim v Fellows
, read in its context and in the light of the issues in
that case, is not an authority requiring a single judge of this court to refuse
to follow the principles expressed by the Full Court in
Bowling’s
case
.
In support of his submissions as to the question of reinstatement, Mr Kaufman
cited a number of decisions by State Courts and Tribunals,
including
G J
Coles & Co Ltd v Pietruszka
(1983) 4 IR 329.
In my opinion those
decisions do not support the defendant’s submissions in this case. In
addition they must be read in the
light of the fact that they were given under
different legislation. In so far as they contain any statement which is
inconsistent
with the judgment of the Full Court in
Bowling’s case
,
the latter is an authority binding upon me.
94 Whether the principle identified by the Union that, upon a relevant
contravention, a
prima facie
or presumptive entitlement to reinstatement
exists puts the position accurately, is open to at least some question. The Full
Court
in
Bowling
was dealing with a different provision (ss 5(1) and (5)
of CA Act), which only provided for a partial compensation remedy (wages
lost to
the date of the order) and the power to order reinstatement arose upon
conviction of an offence (and hence was a penal provision).
95 There is certainly the view, expressed by a number of judges of the Court,
that the true position is the somewhat more refined
notion that reinstatement
“in the ordinary case” is an appropriate order where employment has
been terminated for a prohibited
reason: see
Independent Education Union v
Geelong Grammar School
[2000] FCA 557
(at [34] per Finkelstein J);
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing
and Allied Services Union of Australia v Bluestar Pacific
Pty Limited
[2009]
FCA 726
(at [50] per Greenwood J);
Construction, Forestry, Mining and Energy
Union v Pilbara Iron Company (Services) Pty Ltd (No 3)
[2012] FCA 697
(at
[186] and [190] per Katzmann J);
Construction, Forestry, Mining and Energy
Union v Port Kembla Coal Terminal Ltd (No 2)
[2015] FCA 1088
;
(2015) 253 IR
391
(at 480 [470] per Murphy J);
Sayed v Construction, Forestry, Mining and
Energy Union
[2015] FCA 27
;
(2015) 327 ALR 460
(at 521 [313] per Mortimer
J);
Construction, Forestry, Maritime, Mining and Energy Union v Melbourne
Precast Concrete Nominees Pty Ltd (No 2)
[2020] FCA 1215
(at [8] per
O’Callaghan J). An example of this can be seen in
Construction,
Forestry, Mining and Energy Union v BHP Coal Pty Ltd (No 3)
[2012] FCA 1218
;
(2012) 228 IR 195
, where Jessup J noted (at 237 [125]), in the context of a
claim under s 346 of the FWA, that a reinstatement order “would usually
be
the normal consequence of a successful claim under s 346, in the absence of
some particular reason being shown why such an order
should not be
made”.
96 In addition to these cases, it is worth mentioning two others. The
first
is
Kennewell v MG & CG Atkins trading as Cardinia Waste
& Recyclers
[2015] FCA 716
, where Tracey J observed (at
[75]–[76]):
In
Slonim v Fellows
[1984] HCA 51
;
(1984) 154 CLR 505
at 515
Wilson J (with whom Mason and Deane JJ agreed) said
that:
“ ... the power to direct that A
employ B is a very drastic one ... it will always be a power to be exercised
with caution having
regard to the circumstances of the case. There will be many
cases where the working relationship of employer and employee is so
close that
to impose such a relationship by an award would be quite destructive of
industrial harmony.”
Notwithstanding these cautionary admonitions, there have
been decisions in this Court which are supportive of the proposition that
reinstatement is appropriate “in the ordinary case” in which an
applicant’s employment has been terminated for
a proscribed reason: see
Independent Education Union v Geelong Grammar School
[2000] FCA 557
at
[34]
;
Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd
(No 3)
[2012] FCA 1218
;
(2012) 228 IR 195
at 237. The position remains, however, that the
discretion, vested in the Court by s 545, falls to be exercised in the peculiar
circumstances
of each case.
97 The
second
is the decision of Bromberg J in
Quinn v Overland
[2010] FCA 799
;
(2010) 199 IR 40
(at 59–58 [97]–[98]), where his
Honour made reference to the historical reluctance to allow the equity of
specific performance
to run in relation to the performance of employment
contracts, but cautioned that this hesitancy needs to be understood by reference
to its rationale, and that such a reluctance was based on two
considerations:
... the need for mutual confidence and the perceived
need to avoid constant supervision by a court. Courts have increasingly realised
that those considerations are no longer as applicable to modern day employment
relations as historically was the case:
Turner v Australasian Coal and Shale
Employees’ Federation
[1984] FCA 275
;
(1984) 6 FCR 177
at 192-193; 9 IR 87 at 97-98
per Northrop, Keely and Gray JJ
and
Gregory v Philip Morris Ltd
(1988) 24 IR 397 at 424-425 per Wilcox and Ryan JJ.
Of particular significance to the continuing relevance of the original
rationale, is that throughout the length and breadth of Australia,
Parliaments
have enacted unfair dismissal regimes which provide for the reinstatement of a
dismissed employee as an available remedy.
These regimes have now been in place
for over a generation. Dismissed employees are regularly reinstated into their
former employments
without apparent consequent difficulties. The long-standing
nature of this remedy, and its acceptance as part of the industrial furniture,
is a testament to the fact that as a matter of practice, a breakdown in
confidence is not necessarily irreconcilable. What needs
to be achieved by a
reconciliation is a sufficient level of cooperation for a proper working
relationship to resume; mutual affection
and friendship are not essential:
Downe
at [462].
98 Where does this survey of the cases leave us?
99 What is clear is that once the Court is satisfied that the power is
engaged, the Court’s task is to determine what order
or orders it
considers to be
appropriate
. The consideration of what remedy is
appropriate involves a broad discretion. Although in many cases where an
employee is unlawfully
dismissed, the manifestly appropriate remedial response
is reinstatement, uninstructed by authority, I would be attracted to the
proposition that this does not create any type of
prima facie
entitlement, and there is no principled basis to divine some form of entitlement
unless and until it is displaced. To elevate the
identification of what was an
appropriate remedial response in some cases to being points of principle of
universal application in
cases of a particular genus might be thought to place a
gloss on the statutory words. It also may risk decontextualising cases where
reinstatement has been ordered.
100 Further, two aspects of the statutory context might be thought to tell
against the suggestion there is a
prima facie
rule in a particular type
of case.
First
, s 545 applies without adaptation or modification to a
wide range of civil penalty provisions including: contravening a national
minimum wage order (s 293), contravening a bargaining order (s 233), or
intentionally hindering or obstructing a permit holder’s
entry to an
employer’s premises (s 502). This might be thought to exhibit some tension
with the existence of a presumptive
form of remedy for one type of contravening
conduct and not others (absent a specific indication in the text).
101
Secondly
, the power with which we are concerned can be contrasted
with the remedial power where an employee has been dismissed unfairly contrary
to Part 3-2 of the FWA. Where a dismissal is unfair, s 390(1) grants a power to
order reinstatement or compensation, but s 390(3)
precludes the order of
compensation unless there is satisfaction that reinstatement is
“inappropriate” and s 392(1) provides
that compensation may only be
ordered “in lieu of reinstatement”. This difference in approach
reflects the differences
in statutory objects between Parts 3-1 (“to
provide effective relief”: see s 336(1)(d))
and 3-2 of the FWA
(“to provide remedies ...
with an emphasis on reinstatement
”:
see s 381(1)(c)).
102 But there is some force in the Union’s submissions that the
authorities identified above tend to suggest some support for
a presumptive or
ordinary “principle”, at least in “the ordinary case”
(whatever that elusive description
is supposed to mean), in favour of
reinstatement. In
Port Kembla Coal Terminal Ltd v Construction, Forestry,
Mining and Energy Union
[2016] FCAFC 99
;
(2016) 248 FCR 18
, Jessup J (at 99
[281]–[283], with whom Rangiah J agreed at 137 [463] and White J
agreed at 158 [571]) explained that the Court’s
power to make an order for
the reinstatement of an employee, pursuant to s 545, is not limited to the
making of an order for reinstatement
to the position from which the employee in
question was dismissed. In doing so, his Honour explained the history of an
express power
to reinstate from 1947 onwards and noted that s 545 is not
narrower than its antecedents. His Honour also stated that the fact s
545 of the
FWA applies in contexts which are not limited to contraventions of the
victimisation/freedom of association provisions
of the legislation, does not
affect the approach to its construction.
103 In my view, in every case the question can be stated simply: what is the
appropriate
remedial order or orders in the peculiar circumstances of the
case having regard to relevant matters and discarding the irrelevant
ones? The
decisions relied upon by the Union which are supportive of the proposition that
reinstatement is appropriate in the “ordinary
case” in which an
applicant’s employment has been terminated for a proscribed reason (or
that there is some sort of
prima facie
position to be displaced) might be
better seen simply as a reflection of the fact that in “ordinary
cases” where an employee
is dismissed unlawfully, it might be thought it
would be likely appropriate to order reinstatement, rather than suggesting this
amounts
to some sort of principle to be applied in all cases of this type. In
any event, as I will explain, it really does not matter in
the present case, as
the end result is the same, irrespective as to whether it can be said that there
is some sort of
prima facie
position which is required to be displaced by
the contravener resisting reinstatement.
D.2 Delay and Discretionary Relief
104 The final legal issue I wish to address is how
to approach the issue of any delay and, more specifically, the relevance of the
Union declining to apply to enjoin the implementation of the outsourcing
decision (or seeking an early final hearing) such as to
result in the decision
being implemented (with the consequence that steps were taken by Qantas to put
in place the new arrangements
for baggage handling at the relevant ports and
third party interests were enlivened).
105 Analogies are not perfect and can only go so far, but they can provide at
least some guidance in determining whether an order
for reinstatement (which, to
a limited extent, has some similarity to a statutory order for specific
performance) should be made.
106 It is both distracting and inapt to go into detail as to how equity deals
with issues of delay when an order for specific performance
is sought. Speaking
very generally, the mere fact of delay is not fatal to relief unless
it rises to a level such as to amount to
laches. The real focus is on whether,
having regard to any delay, it is, in the all the circumstances, fair and just
to order specific
performance. This involves consideration as to whether an
element of injustice is present that would not have been present had the
relief
been sought without any operative delay: see
Carter v Hyde
[1923] HCA 36
;
(1923) 33
CLR 115
(at 127 per Isaacs J);
Websdale v S & J D Investments
Pty Ltd
(1991) 24 NSWLR 573
(at 581–582 per Clarke
JA, with whom Samuels JA generally agreed at 574 and Priestley JA agreed at
575).
107 The same approach seems to me to provide a useful guide as to how one
weighs any delay in considering whether an order for reinstatement
under s 545
of the FWA is “appropriate”. Hence, it seems to me to be a relevant
consideration to ask whether there is
an element of injustice occasioned to
either a party or third parties that would not have been present had the relief
been sought
without any proven relevant delay?
E THE PROCEDURAL HISTORY
108 As long ago as 25 August 2020, Qantas made a
public announcement about a proposal to outsource work. An in-house bid process
then
occurred which the Union considered was being conducted unsatisfactorily.
On 30 November 2020, the outsourcing decision was announced.
109 Despite the urgency and the not unlikely prospect that the outsourcing
decision would be made, the proceeding was not commenced
until 9 December 2020.
I arranged for it to have an early return date because, upon reviewing the
originating application, relief
was sought (prayer 2) in the following
terms:
2. Orders in the nature of an injunction pursuant to s
545(2)(a) preventing Qantas:
2.1 terminating the employment of the Qantas
Employees on the basis that their jobs are to be outsourced;
2.2 terminating its contract or contracts with QGS, ceasing to engage QGS or
otherwise make use of the services of QGS in relation
to the provision of ground
handling services.
110 Further, it was evident from the statement of claim, that the
implementation of the decision of Qantas to outsource its ground
handling
operations to third parties was not then yet in place. Hence, I assumed, the
relief enjoining Qantas would be moved upon
or, at least, an early final hearing
would be sought by the Union prior to the implementation of the outsourcing
decision. It seemed
to me that this was obviously an urgent matter, likely
affecting the lives of thousands of third parties.
111 The evidence discloses that after listing the matter, but before the
first return of the application, there were communications
between the parties.
112 On 10 December 2020, Qantas and QGS respectively launched a preference
process through an electronic form giving the affected
employees the opportunity
to express their interest in either: redundancy with an exit date in January,
February or March 2021; or
job swap or redeployment opportunities. The next day,
the solicitors for the Union wrote to the solicitors for Qantas, seeking that
Qantas provide an undertaking that Qantas would not terminate the employment of
the affected employees employed by Qantas or terminate
its operations with
QGS.
113 Three days later, Qantas by its solicitors, advised that no decision
consequent on the 30 November 2020 announcement of the outsourcing
decision had
been made and that no undertaking would be provided (noting no undertaking as to
damages had been offered).
114 On the morning of the day before the first case management hearing
(
FCMH
) on 22 December 2020, I had my Associate send a memorandum to the
parties noting, among other things, that: (a) at the FCMH, consideration
would
be given to the steps truly required to be taken and the setting of dates for
mediation and hearing as early as reasonably
possible; (b) prior to 5pm, the
parties were free to provide to chambers copies of any agreed or competing
proposed orders and that
if a contested interlocutory order was sought,
sufficient notice ought be provided to the other party and either party could
file
a short submission in relation to the issue prior to the FCMH (and that my
practice was to attempt to resolve all interlocutory issues
within the context
of the case management hearing and, if reasons were sought, they would likely be
provided
ex tempore
); and (c) the matter could be listed before me at
short notice at any time.
115 Against this background, my Associate received the following
communication later that day, but after hours, from the Union’s
solicitors:
We refer to the above proceeding, which is listed for a
case management conference before his Honour Justice Lee tomorrow at noon.
The parties have conferred regarding the orders for the proceeding but have not
reached an agreed position. The applicant’s
proposed orders are
attached (the tracked changes are made to orders proposed by the respondent).
Given his Honour’s practice
of not formally reserving liberty to apply, we
do not seek order 13. Our counsel will provide an explanation of the orders at
tomorrow’s
case management conference.
116 Those orders, as proposed by the Union, suggested a separate liability
hearing, allowed a further month for Qantas to file its
defence (that is, not
only abridging the time required by the FCR, but in fact extending time), and
proposed category-based discovery;
however, they did not require Qantas to file
its evidence until early March 2021 and suggested a liability hearing “not
before”
mid-April 2021.
117 When the matter came before me the next day, I indicated that although
pleaded in a complicated manner, if the case was simplified,
it seemed a
“relatively straightforward case”: FCMH, T3.32. The following
exchange then occurred with senior counsel
for the Union (at FCMH,
T3.38–T4.39:
HIS HONOUR: Now, while we’re dealing with relief,
in respect of prayer 2, orders in the nature of an injunction, what is the
state
of play concerning the termination of employment of the Qantas employees, as
defined?
MR GIBIAN: As I understand it, it has been communicated that it’s intended
to occur at times between January and March of 2021.
I understand there was - -
-
HIS HONOUR: Well, if it’s going to occur between January and March 2021
there’s not much point granting an injunction,
is there, in circumstances
where you’re proposing a timetable which takes us up to past April?
MR GIBIAN: As I understand it, that is the current time frame that is proposed
by Qantas. We have communicated to Qantas a request
that they not proceed
further with the matter pending the - - -
HIS HONOUR: And what have they said?
MR GIBIAN: I think – as I understand it, their response is that they were
still continuing to consult regarding the outsourcing
decision and further
decisions have not been made in respect of timing but there was no need for an
undertaking in that circumstance.
HIS HONOUR: Well - - -
MR GIBIAN: That was what was communicated on 15 December.
HIS HONOUR: You’re not moving for any interlocutory relief.
MR GIBIAN: No, your Honour.
HIS HONOUR: So isn’t it the case then that the final relief is likely to
be otiose unless we get this matter on – at
least prayer 2 will be
rendered otiose unless you get this matter on quickly.
MR GIBIAN: Yes, your Honour. There may need to be – if those actions are
taken then there may need to be refinement of an alternative
relief sought,
which could be in the form of reinstatement or compensation as alternatives.
HIS HONOUR: So you don’t press for a hearing in January?
MR GIBIAN: We don’t think that that is likely to be practically –
complete the proceedings.
HIS HONOUR: Why not?
MR GIBIAN: We think it is a case in which there has to be the production of
documents and sufficient time for the process that has
been undertaken by Qantas
to be subject of examination upon the production of those
documents.
118 Later, in the course of submissions with senior counsel for Qantas, there
was some discussion as to the scope and timing of discovery
and the following
exchange occurred (FCMH, T15.44–T16.19):
HIS HONOUR: ... My original concern was the relief
[that was] sought of an injunctive nature, but that doesn’t seem to be
being
pressed. And whether I had to really quite expedite this
MR DALTON: Yes, so - - -
...
HIS HONOUR: ... it struck me as a bit odd that you would seek final relief in
accordance with prayer two of the originating application,
an injunction
preventing termination of the employment when the case isn’t going to get
on until after their employment is
terminated. So, that was the reason for my
asking Mr Gibian if he wanted a hearing date in January - - -
MR DALTON: Yes, I heard that.
HIS HONOUR: - - - because that was the final relief.
MR DALTON: I heard that explained, your Honour.
119 By the end of the FCMH, it became apparent the Union had been refused an
undertaking but determined it would not seek an interlocutory
injunction. Given
the price that would have been sought upon the granting of such relief (an
undertaking as to damages), this was
perhaps understandable. But I went on to
note that the Court would do all it could to facilitate an early final hearing
on liability,
including by sitting in the long vacation. However, the Union was
content to persist in an overly complicated case (part of it was
only abandoned
when I entreated the Union to do so) and on a timetable which did not provide
for an expedited hearing. Although discovery
was critical, the reasonable
searches required by FCR 20.14 would have been informed by the relevant matter
of the discovery process
needing to be completed quickly: see FCR 20.14(3)(e).
The important and critical documents were hardly obscure (as might reasonably
have been expected) and I had little doubt at the time that an expedited
discovery process could have resulted in the production
of the key documents
(notwithstanding Qantas’ submissions as to how long it would all take). As
it happens, the discovery that
was given, and the revelation of the close
involvement of the solicitors since at least May 2020, fortifies the view I then
held.
120 Mr Gibian SC for the Union explained with some force in final submissions
that it was a responsible course not to take an early
final hearing. There is
some merit in his contention that, given the then asymmetry of information as to
what happened within Qantas,
it was a responsible course on the facts then known
to the Union and those that advised them to pursue a later hearing. It also
appears
that the law is somewhat unsettled as to the approach that should be
taken in order to establish a serious question to be tried seeking
interim
relief: see
Police Federation of Australia v Nixon
[2008] FCA 467
;
(2008)
168 FCR 340
(at 361–362 [69] Ryan J);
Automotive, Food, Metals,
Engineering, Printing and Kindred Industries Union (AMWU) v O-I Operations
(Australia) Pty Ltd
[2019] FCA 1272
(at [48]–[53] per Snaden J).
121 Moreover, in the principal judgment (at 332 [314]) I observed that this
complex matter as to liability was resolved only eight
months to the day
from the making of the impugned decision and that this occurred because of the
skill and the co-operation of the
practitioners involved for both parties, for
which the Court indicated its gratitude. Notwithstanding that the hearing and
determination
occurred relatively quickly, I am satisfied that with a sense of
urgency the case on liability could have been held earlier and that,
when it did
run, it was still more complicated than it had to be, including involving expert
evidence of marginal (at best) utility
and a vast bundle of documents (out of
which, only a fraction went into evidence). This resulted in the need to produce
a judgment
dealing with a range of issues and with evidence that, in the end,
were not relevant to the determinative issue between the parties.
122 I will return below to how this procedural history assumes significance
in the exercise of discretion.
F THE UNION’S CONTENTIONS
123 With some degree of overlap and simplification
attendant upon summary, the Union’s submissions as to why reinstatement is
the “only appropriate remedy that will address and remedy” the
effects of the contravention of s 340(1)(b) of the FWA
can be placed into a
number of broad contentions.
124
First
, reinstatement is the only remedy that will “vindicate
the important public and remedial purpose” of the provision contravened
given the purpose of s 340(1)(b), which is, relevantly, to protect employees
from their employer taking adverse action against them
to prevent them from
exercising a workplace right. It is said that the only way to address and remedy
that contravention is to place
outsourced employees back in a position where
they are able to exercise those rights. That can only be achieved by an order
for reinstatement.
Additionally, the consequence of the redundancies of the
outsourced employees has been that any practical ability for enterprise
bargaining for replacement agreements to the QAL Agreement and QGS Agreement has
disappeared; the Union’s membership base in
Qantas’ business has now
also disappeared, as too has its capacity to advocate for and represent the
industrial interests of
members in Qantas’ business and this has the
obvious potential to reduce the collective strength of the Union and the
interests
of its members more generally. A related point was developed (and if I
may say so, powerfully) in closing submissions, to the effect
that there would
be a reduction in the “collective strength” of the Union if the
Court did not recognise a
prima facie
entitlement to reinstatement and
make such an order in the circumstances of this case. In this respect, senior
counsel for the Union,
stated (at T407.32–41):
The significance of [the reduction of the collective
strength of the Union] is that the rights that are sought to be protected by
the
provisions which have been contravened are not purely individual – are not
individual rights; they are collective rights.
That is, your Honour found that
action was taken to prevent the exercise of workplace rights, being to
participate and to engage
in protective industrial action and enterprise
bargaining. Those processes are, by definition, collective industrial processes
that
... are undertaken by industrial organisations that organise their members
to participate in those processes in order to obtain industrial
outcomes in
terms of improved wages and terms of conditions employment for a group of
members and for a class of employees, not just
for individual members employed
at a particular point in time, but for the class of industrial membership that
the union has.
Those are the rights that are sought to be protected by the [FWA] and by these
provisions
. If all that happens out of preventing those collective processes
happening is that current individual employees receive an amount
by way of
compensation with respect to the loss of their employment, those collective
industrial rights have not been protected.
(Emphasis added).
125 Indeed, it is said, contrary to the submission of Qantas, that while the
FWA does serve to protect individual industrial rights,
it does so through the
preservation of collective industrial rights.
126
Secondly
, it is contended that the evidence adduced by Qantas and
QGS, taken as a whole, is incapable of discharging the burden to displace
“the
prima facie
position” that “reinstatement should
be ordered where an employer has been found to have contravened one of the
protective
provisions of Part 3-1 of the [FWA]” and that contravention has
led to the dismissal of employees.
127
Thirdly
, it is said that refusing reinstatement relief would be
incongruent with authority, in particular, the principles expounded in
Australasian Meat Industry Employees Union v Sunland Enterprises Pty Ltd
(trading as Sunland Wholesale Meats)
(1988) 81 ALR 213
(at 219 per
Gray J) to the effect that a contravening employer cannot be heard to
complain that reinstatement would involve reorganisation
of its operations,
expense or inconvenience to it. Gray J’s observation in
Sunland
Enterprises
is submitted to be germane to the present case: if an employer
could resist an order reinstating employees because of expense or
inconvenience
to it, very few reinstatement orders would be made and employers would be
incentivised to arrange their affairs to
avoid reinstatement. That is, however,
precisely the contention said to be advanced by Qantas and QGS in opposition to
reinstatement.
Indeed, the Union contends that Qantas, in effect, seeks to rely
on “the sheer scale of its own unlawful conduct to defeat
reinstatement” and that the “scale of Qantas’ contravention
makes it more, not less, urgent that appropriate remedies
be ordered by the
Court”. Hence, it is submitted that to accept Qantas’ argument would
be:
... to accept the proposition that contravening the
important protections under Part 3-1 of the [FWA] and incurring the costs of a
Court hearing and then paying whatever penalties and compensation may be ordered
are but the cost of achieving an unlawful end.
128
Fourthly
, the suggestion in the evidence that Qantas will not take
steps absent compulsion to re-create the infrastructure and conditions
necessary
for outsourced employees to be reinstated is contended to be contrary to the
principles explained
Blackadder v Ramsey Butchering Services Pty Ltd
[2005] HCA 22
;
(2005) 221 CLR 539
(at 544–545 [14] per McHugh J, at 549
[33] per Kirby J, and at 564–565 [75] per Callinan and Heydon JJ). It is
said the
evidence that Qantas will not take requisite steps to put back in place
reinstated outsourced employees “is remarkable and
indicative of an
intention to not comply with an order for reinstatement” and “cannot
be relevant to whether a reinstatement
order should be made”. The Union
goes so far as to characterise this as an “impermissible threat”;
that is, Qantas’
evidence that, in the absence of a specific order
requiring it to re-create its ground handling business, it will not do so and
that
outsourced employees will forthwith be made redundant amounts to a flagrant
“determination to circumvent” any order for
a global
reinstatement.
129
Fifthly
, it is submitted that none of the established “good
reasons” taken from the cases as to why reinstatement should not
be
ordered exist in the present case and in this regard:
(1) there is and can be no assertion that there has been a breakdown of trust
and confidence as between Qantas and QGS and their
former employees, given that
the outsourced employees were terminated by reason of redundancy rather than as
a result of any misconduct
or any reason peculiar to them;
(2) the vast majority of outsourced employees wish to be reinstated (although in
oral submissions this was refined to being the desire
of a substantial number of
outsourced employees);
(3) notwithstanding that there will be some practical inconvenience and cost
involved this “does not function to displace the
prima facie
position that reinstatement should be ordered”; and
(4) none of the outsourced employees were offered their jobs back (and although
consistent with Qantas and QGS’ consultation
obligations under applicable
enterprise agreements, they have been able to apply for other jobs in
Qantas’ business) and “only
a rejection of an offer of their
previous jobs back would displace the
prima facie
position”.
Indeed, it is said that Qantas did not “lead any evidence as to which
employees were offered alternate jobs
in its business, what the terms and
conditions attaching to those jobs were and how they compared to the conditions
previously enjoyed
by the [outsourced] employees”.
130
Sixthly
, it is said that the assertion that outsourced employees
would have been made redundant in any event as there were other non-prohibited
commercial reasons for the outsourcing is irrelevant (see
Sutherland v
Hills
Industries Ltd
(unreported, Keely J, 22 September 1982) and it
is contrary to principle for an employer to contend that reinstatement should
not
be ordered on the basis that without the proscribed reason, dismissal would
(or could) lawfully have happened in any event:
Bowling
(at 304–305
per JB Sweeney, Evatt and Northrop JJ);
Communications, Electrical,
Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of
Australia v ACI Operations
Pty Ltd
[2005] FCA 1662
;
(2005) 147 IR 35
(at 327
[70] and 328 [73]–[75] per Marshall J).
131
Seventhly
, the notion that the outsourced employees may have been
terminated “at some future point after their actual terminations is,
again, not something that displaces the
prima facie
position” and
the “counterfactual” hypothetical evidence led by Qantas is
irrelevant. Whether Qantas hypothetically
may have moved to outsource the
affected employees in early or mid-2021, it is submitted, says nothing about
whether it is appropriate
to reinstate them in December 2021, “as it
assumes that Qantas would have proceeded with outsourcing in 2021 after the
‘window
of opportunity’ presented in 2020 with the QAL Agreement not
being open would have vanished by the end of that year”:
see PJ at [201],
[274] and [277].
132
Eighthly
, even accepting the premise that reinstated employees
could be lawfully terminated subsequent to reinstatement, the possibility of
almost immediate dismissal would not operate to render an order for
reinstatement futile.
133
Ninthly
, the Union relied upon the principle reflected in the
maxim
nullus commodum capere potest de injura sua propria
,
that
is, no person should be allowed to take advantage of their own wrong. Further,
the Union contended in reply that it was relevant
to the question of remedy that
Qantas and QGS have demonstrated “a thorough absence of remorse or
reflection” in relation
to the contravening conduct and that the Court
“would not accept an unrepentant and recalcitrant respondent
employer”
seeking to establish that “reinstatement is inappropriate
by vowing to take the same adverse action against the same employees
as soon as
reinstatement is ordered or at some point in the future”.
134
Tenthly
, Qantas cannot be heard to complain about inconvenience or
economic difficulties consequent upon reinstatement, because this proceeding
was
instituted well before employees were dismissed and before contracts were
entered into in late January 2021 and, therefore, it
was on notice that the
lawfulness of it conduct was contested and that an order for reinstatement, if
outsourcing proceeded, was
sought.
135
Eleventhly,
although this point received little attention during
the course of the hearing, a suggestion was faintly made in writing that
contrary
to the bleak picture painted by the evidence adduced by Qantas as to
the current state of its finances, this is not the picture Qantas
is presenting
to the public. Mr Joyce has talked about such things as: the “growing
momentum around our recovery”; the
fact that “there is a lot of
pent-up demand that we’re ready to capitalise on, with some strong signs
already”;
and that although COVID had “a devastating impact on the
aviation industry” and that Qantas has its “own repair
work to
do”, Qantas knows “travel demand will rebound quickly and right now
we’re in a strong position to secure
the best possible deal at very good
prices” (for a fleet renewal programme).
136
Twelfthly
, the evidence amply demonstrates that the contravening
conduct has had a “significant and adverse effect ... on blue-collar
workers” including many of whom who had worked for Qantas for a number of
years and planned to work for Qantas until their
retirement. Further, many
enjoyed and took great pride in their work; have experienced serious economic
and social dislocation as
a result of their dismissals; have been adversely
affected psychologically and have suffered symptoms of depression and anxiety;
and have found it difficult, due to their skill sets, educational situation and
age, to find equivalent work.
G CONSIDERATION
137 It is well to commence with what in my mind are
the two most significant points made by the Union (see [124] and [136] above).
138 The non-pecuniary prejudice suffered by workers being unlawfully
terminated cannot be gainsaid and ought not to be minimised.
139 Work is more than a way to make a living; it is a form of continuing
participation in society. The rights of workers, like all
other rights, are
based on the nature of the human person and on their transcendent dignity.
Justice Bromberg, with respect, put
it well in
Quinn v Overland
(at 60 [101]), when his Honour observed:
There is now a greater recognition than ever that
employment is important to an employee not simply because it provides economic
sustenance.
Workplaces are a hub of important human exchanges which are vital to
the wellbeing of individual workers. Work provides employees
with purpose,
dignity, pride, enjoyment, social acceptance and many social connections. As
well, the performance of work allows for
skill enhancement and advances career
opportunities. These non-pecuniary attributes of work are important and their
denial can be
devastating to the legitimate interests of any worker, either
skilled or unskilled.
140 I suspect this is the reason why it seems to me likely that a significant
(but unascertained) number of the outsourced employees
would wish to obtain
reinstatement. A number of the outsourced employees, especially those towards
the end of their working life,
have been deprived (initially, at least, by an
unlawful action) of the opportunity of seeing out their productive working life
with
the matchless blessing of a worthwhile job. In this way, by the
contravening conduct, they have been prevented from performing valuable
labour
and enjoying the satisfaction and self-respect that such labour often brings.
This is a factor that tends to point strongly
towards reinstatement for such
persons being an appropriate remedy.
141 A further factor supporting reinstatement is that to decline
reinstatement might be thought to give insufficient weight to the
important
remedial purpose of placing outsourced employees back in a position where they
are able to exercise the rights the subject
of the contravening conduct.
Relatedly, it would be giving insufficient weight to the impact on the ability
of the Union to advocate
for, and represent, the industrial interests of its
members in Qantas’ business and this has the obvious potential to reduce
the collective strength of the Union and the interests of its members contrary
to the statutory purpose of the FWA. Although one
needs to recognise that only
39% of the outsourced employees are members of the Union, all employees’
interests are potentially
furthered by the exercise of collective industrial
rights. Again there is real substance to this submission, and I can understand
why, if the only remedy is compensation and pecuniary penalties, collective
industrial rights will not be protected in the same way
as a reinstatement
order. But these considerations must be balanced with
all
relevant
factors. Although clearly a relevant factor favouring the making of a
reinstatement order, there is a prospect that focussing
too closely on placing
the outsourced employees back in a position where they are able to exercise
particular rights and the vindication
of those collective rights protected by
the FWA (which for obvious reasons is a matter of especial interest to the
Union), could
distract from my task of determining the
appropriate
remedy
in all the circumstances of the case.
142 I will deal below with all the other contentions of the Union, but it is
convenient to now turn to the compelling reasons to refuse
the global
reinstalment relief sought.
143
First
, in assessing whether a remedial order is
“appropriate”, it goes without saying that the Court should not make
an order
that would be futile, or incapable of performance. But the question of
whether an order is “appropriate” is not answered
by simply
asserting it is capable of being implemented. The fastening upon an appropriate
remedial response can involve a comparison
with differing remedial responses
that may be available depending upon the facts of the case. If two quite
different responses are
capable
of being implemented, but one ranks far
higher in an assessment of what is appropriate (including displacing what might
be perceived
to be a presumptive remedy in an “ordinary case”), then
it stands to reason that the less appropriate response ought
to be discarded.
Put another way, the discretion involved in making a remedial order in an
appropriate case is necessarily informed
not only by the policy imperatives to
further the object of the statute and the other factors identified above, but
also by the comparative
cost and delay associated with differing responses. They
each may have different pros and cons, and these pros and cons must (or
at least
should) be considered in assessing appropriateness of the proposed remedy
sought. In making this point I recognise that
unlike at an earlier stage of the
debate as to relief, the Union does not now advance global reinstatement and
compensation as
pure
alternatives; the point I am making involves a
comparison between a global reinstatement order (together with some future
limited
individual compensation order that might be available subject to any
repayment of benefits obtained by reason of retrenchment) and
an order for
compensation for the outsourced employees in the absence of reinstatement (and
absent any repayment of sums already
paid).
144 There will be examples where the difficulties in reinstatement, although
not properly described as incapable of performance, would
not be
“appropriate”. A good example is provided by Gray J’s
decision in
Chelvarajah v Global Protection Pty Ltd
[2004] FCA 1661
;
(2004) 142 FCR 296
, where a security guard was dismissed but the respondent had
subsequently ceased to carry on its security business. Asked to consider
whether
the guard should be reinstated, his Honour observed (at 306–307 [35]):
... It is not impossible for a company, still in
existence, to carry out the order of the Commission. For it to do so, however,
the
respondent would be required to embark upon the conduct of a business which
it does not conduct presently. It would have to enter
into a contract or
contracts with a person or persons unknown to provide the services of one or
more security guards. It would then
be required to administer those contracts,
and to do all that is necessary to continue to operate such a business, if it
were to
respect the right of Mr Chelvarajah to continue in employment, once he
was appointed. It would be required to do these things to
avoid being found to
be in contempt of court and being punished by a fine or by sequestration of its
assets. Such a burden is too
great to impose.
145 His Honour continued (at 308 [37]):
... It is ... easy to accept that there may be many
cases in which an employer may be required to create the position to which it
is
ordered to appoint a dismissed employee. Such cases will be those in which the
employer continues to conduct the same, or a similar,
business to that conducted
at the time of the termination of employment. They will be cases in which the
position created will have
attached to it duties on the employee to perform
work, provided that there is no impediment to the employee performing work. They
will not be cases such as the present, in which the employer would have to
create not only the new position, but an entire new business,
in which the
position could be located.
146 In the present case, in the events that have happened, one simply cannot
ignore the reality that there are no extant positions
to which the outsourced
employees may be appointed without the re-creation of a ground handling
operation of the type previously
carried out by Qantas. Without the re-creation
of this aspect of the business, including the necessary capital expenditure and
third
party transactions which would allow the
status quo ante
to be
restored, there is no business in which to create any such positions and Qantas
cannot provide any affected employee with any
work of the nature they were
performing prior to dismissal.
147 This is not a case where reinstatement orders would be futile because
compliance would not be possible, but as my findings make
clear, compliance
would involve (see [28] and [75] above) Qantas needing to put in place a
complicated process to re-create substantially
its Airports Ground Operations
business. This course would include, among other things: (a) capital expenditure
(at a far from propitious
time for the business) including, but not limited to,
buying back GSE; (b) making lease arrangements; and (c) recruiting up to 50
ground operations executive managers across 10 ports. The budgeted costs savings
would need to be revisited. This re-creation is
a far from insignificant
endeavour involving very considerable cost and the potential for significant
delay before it can be implemented.
These practical consequences of the proposed
global reinstatement order necessarily bear upon the assessment of whether a
reinstatement
order could be properly regarded, in the bespoke circumstances of
this case, as “appropriate”.
A fortiori
when the making of a
compensatory order putting each affected employee in the position they would
have been but for the contravening
conduct could be made (and be made against
respondents where there is no suggestion that a compensatory order would not be
paid),
the apparent suggestion by the Union (relying upon
Sunland
)
that the Court ought to have no or little regard to the effect of the
reinstatement orders on the wrongdoer (no matter how great the
organisational
disruption, cost or inconvenience to them) cannot be right. The facts in
Sunland
are a world away, involving the proposed reinstatement of two
former employees into an existing business function.
148
Secondly
, as I raised at the case management hearing when the
issue of a global reinstatement order was proposed, an individual opt-out
mechanism
is somewhat problematical absent clarity as to the quantum of the
alternative compensation remedy or the specific basis of its calculation.
As
Qantas submits, individuals might have some idea about what their past economic
loss looks like, but little idea of what their
future economic loss might be,
meaning they would be uncertain about the impact on their compensation
entitlements if they elect
to opt-out of reinstatement. There may also be some
additional incentive for outsourced employees to not opt-out. The proposal of
the Union is that outsourced employees would come to realise that during the
first months after reinstatement they would likely receive
wages while not being
required to work. As such, the reinstated employees may have no or little work
to do for a significant period
after reinstatement, while receiving full pay.
This factor, and the regrettable lack of specifics as to what percentage of
outsourced
employees actually want to be reinstated, are not pointers to
reinstatement being appropriate.
149
Thirdly
, and at some risk of understatement, I consider that any
global reinstatement order is likely to produce real uncertainty and ongoing
disputation. As Qantas and QGS correctly submit, it is not difficult to foresee
disputes over matters including: (a) what commercial
terms and what level of
rent demanded by the (monopoly) lessor of each of the 10 ports should Qantas be
required to accept (assuming
that such space to rent is available); (b) what
commercial terms should Qantas be forced to accept with each of the nine
contractors
in renegotiating each of the 20 commercial contracts with them for
the purpose of facilitating any likely dual ground handling model;
(c) what
commercial terms and at which prices should Qantas pay the contractors for the
GSE; and (d) what parameters should be imposed
on Qantas in terms of raising the
additional funds required to re-create and operate ground handling as before
(including the necessary
capital expenditure to allow the business to be run).
150 I should note that despite what I have said and its significance,
reliance on the third point as a discretionary factor against
making a
re-instatement order causes me some perturbation. Problems with enforcement are
likely to arise even if there was a measure
of goodwill and co-operation between
the parties. But as was foreshadowed by Qantas and QGS in final submissions,
ensuring compliance
when so many variables are in play (and in circumstances
where the parties are at loggerheads) will, I suspect, be like presiding
over
the litigation equivalent of the Battle of the Somme. I am conscious that Qantas
and QGS should not, in effect, be “rewarded”
for creating any
problems with ongoing supervision and enforcement, but they are entitled to rely
on their legal rights and one cannot
ignore that any reinstatement regime as
would be required in this singular set of circumstances is likely to cause
ongoing problems.
151 When one considers all of the above, the conclusion that a global
reinstalment order is not an appropriate order to make in all
the circumstances
is not attended by any doubt. This is reinforced (but not dependent upon) the
fact that if the outsourced employees
were reinstated, Qantas would retrench
them as soon as is practicable to do so, as explained below.
152 The above analysis has already dealt sufficiently with many of the issues
raised by the Union (identified and summarised into
12 points at [124] to [136]
above), but it is appropriate, at the risk of repetition, to make the following
additional points:
(1) Although the important public and remedial purpose of the provision
contravened is to protect employees from their employer preventing
them from
exercising a workplace right, it puts the matter far too highly to assert that
reinstatement is the
only
way to remedy the contravention. Depending upon
the circumstances, it may be the necessary remedy, but this it is not such a
case.
(2) The suggestion in the evidence that Qantas will not take steps absent
compulsion to re-create the infrastructure and conditions
necessary for
outsourced employees to be reinstated is not “remarkable and indicative of
an intention to not comply with an
order for reinstatement”; it reflects
the uncontentious reality that Qantas does not wish to make any capital
expenditure in
respect of GSE, nor employ new staff given it continues to face
serious financial and operational difficulties and has a single-minded
focus on
reducing costs. Put in blunt terms, the commercial reality is that Qantas
perceives the commercial consequences of the making
of a general reinstatement
order as seriously inimical to its interests. It is not surprising that absent
compulsion and subsequent
close supervision (to the extent such supervision is
practicable), the steps necessary to implement reinstatement will not happen.
This is so plain that Mr David has already made what amounts to a decision to
sack any outsourced employees if they are reinstated.
I do not perceive this as
a minatory indication Qantas and QGS will not comply with orders of the Court;
rather, it highlights the
necessity for orders to be as prescriptive and precise
as possible and that there will need to be close attention of the Court in
the
event something uncertain arises. Any “appropriate” remedy must
reflect the reality that Qantas will do no more than
is necessary to comply with
any Court orders.
(3) Whatever its merits in a so-called “ordinary case”, in the light
of the above, the suggestion made by the Union in
reply that an order could
simply be made requiring “Qantas take all steps and do all things
necessary to ensure that [outsourced
employees] are re-employed in their
previous positions as they existed at the time of termination” is
misconceived as, in the
complex circumstances of this case, an order cast in
such general terms would be both hopelessly ambiguous and require constant
supervision.
(4) As noted above, the Union posits that there must be “good
reason” as to why reinstatement should not be ordered,
so as to displace
the
prima facie
position that reinstatement should be ordered. Whether
this is the principled approach, or the task is simply to fasten upon the
remedial
response that is appropriate in the circumstances, there is a danger in
analogising from other cases. Although there was no breakdown
of trust and
confidence and a significant number of outsourced employees likely wish to be
reinstated (and these factors point in
favour of a reinstatement order being
made),
all the relevant circumstances
must be considered including those
set out above, which are compelling.
(5) Resort to maxims can obscure rather than illuminate. The maxim the Union
calls in aid reflects the same policy behind the salient
tenets of equity that a
party seeking relief must come with clean hands and that a party cannot secure
the assistance of a court
while enjoying the fruit of their own wrong. So much
may be accepted as a general proposition. But such assertions, while perhaps
understandable given Qantas’ stated intention that it would not re-create
a ground handling business, can be distracting. It
might be thought, as the
Union’s submissions suggest, Qantas and QGS have “gotten away”
with something by avoiding
reinstatement, but any order made pursuant to s 545
of the FWA must be remedial, compensatory or preventative (see
Australian
Building and Construction Commissioner v Construction, Forestry, Mining and
Energy Union
[2018] HCA 3
;
(2018) 262 CLR 157
(at 193 [110] per Keane,
Nettle and Gordon JJ). My focus at this Reinstatement Hearing is not on
deterrence and a condign response
to wrongdoing (including the cardinal notion
that a wrongdoer must feel a “sting”, and not secure a benefit from
their
non-compliance). Such notions will be highly relevant if, and when, I
consider penal orders.
(6) Although there may be growing momentum around recovery, it is agreed that
flying activity has dramatically decreased, there have
been ongoing stand downs
of employees and Qantas continues to face serious financial and operational
difficulties as a result of
the ongoing pandemic, including uncertainty
associated with the level of flying activity.
(7) Finally, I accept the failure to make a global reinstatement order, in
addition to reducing the collective strength of the Union,
also has the
potential to reduce the interests of its members more generally. A cost saving
for a corporation, looked solely from
the perspective of the corporation, is
desirable. But to the employees affected who may not be able to get a
replacement job, or
secure a similar job on inferior terms and conditions, the
“cost saving” looks very different. The ultimate effect of
the
outsourcing will be to reduce the wages and conditions of those doing ground
handling work who, to the extent they do work for
Qantas, will be employed by
contractors. But I am not convinced this will be cured by the relief sought.
Even if granted, as soon
as it is possible, Qantas will pursue the very
significant savings associated with outsourcing it has identified. Any
appropriate
remedial response to the contravening conduct lies elsewhere, as
does any alleviation of any more general perceived problems caused
by the
increasingly widespread industrial phenomenon of outsourcing.
153 I should also mention an additional argument advanced by Qantas and QGS
that was the subject of very detailed oral evidence (both
in chief and in
cross-examination) as to whether, if Qantas had not made the outsourcing
decision in November 2020, it would, by
August 2021, have decided to implement
that outsourcing (that is, when each enterprise agreement was “open”
and there
was still significant operational disruption). The evidence in support
of this submission relied on elaborate counterfactuals, and
it was ultimately
said by Qantas that, if such a finding was made,
“the Court does not have power to order
reinstatement”. This argument is fallacious. There is no want of power, as
the
order would still be remedial. But when it comes to discretion, the notion
that any reinstated employees would be receiving a “windfall”
is
unpersuasive. The real question for present purposes is not an examination of
what would have happened in a parallel universe,
but rather what would likely
happen in the future if the outsourced employees were reinstated.
154 Having noted this, there is a somewhat different point to be made, which
is much more relevant. The findings I have already made,
and the evidence at
this hearing, all point compellingly to the notion that if there a is lodestar
in divining the actions of Qantas
in the current environment, it is the
minimisation of costs. I accept that Qantas, at all material times, would have
tried, if the
rewards outweighed the risks, to minimise the costs of ground
operations. To the extent this conclusion is useful, it always tended
to point
to the likely inevitability of retrenchment at some time in the future, should
the outsourced employees be reinstated. Given
my previous findings as to the
overriding motivation of Qantas, its focus on costs savings, and its subjective
commercial interests,
even without the oral evidence at the hearing, I would
have been inclined to think that another exercise in retrenchment by way of
outsourcing any reinstated employees was likely to be attempted when considered
practicable to do so. Indeed, it would have been
naïve to think otherwise.
The evidence of Mr Hughes and Mr David established beyond peradventure that
Qantas would only do what
it was legally required to do in setting up a ground
operations business (and no more) and retrench any reinstated employees as soon
as it could.
155 I appreciate that hearing this will cause distress and discomfort to some
of the outsourced employees, and be particularly upsetting
to those suffering
real non-pecuniary loss associated with a loss of work. It may be that different
executives in different public
companies (still acting consistently with their
duties to their employer and the company’s shareholders) could rationally
place
a higher premium on non-financial matters such as loyalty and staff
welfare than those within Qantas, but that is not really to the
point.
156 It is not the role of the Court to make moral or ethical judgments about
the priorities of Qantas, its focus on maximising ownership
returns and its
judgments as to how this impetrative is balanced ethically with the
responsibilities, at its perceives them, to its
employees, including to its long
standing employees. Economists, philosophers and theologians have written about
this and related
topics for hundreds of years since Adam Smith wrote
An
Inquiry into
the Nature of the Wealth of Nations
(1776) (as an aside,
for an interesting introductory article, see Kolstad I, “Why Firms Should
Not Always Maximise Profits”
(2007) 76
Journal of Business Ethics
(2007) 137). But an enquiry into the subjective motivations and commercial
priorities of Qantas assumes some present significance
because of the reality of
what Qantas will do if the outsourced employees were reinstated.
157 In making these remarks and accepting that retrenchment as soon as is
practicable is a factor (although in no way determinative)
in favour of refusing
reinstatement, I am cognisant of what McHugh J said in
Blackadder
(at
544–545 [14]) that, giving full effect to the term
“reinstatement” means “the employee is to be given
back his
“job” at the same place and with the same duties, remuneration and
working conditions as existed before the
termination”. But the
Court’s reasoning in
Blackadder
must be viewed in the context of
the facts of that case. There, the Australian Industrial Relations Commission
found that a single
employee had been unfairly dismissed from his role as a
boner in an abattoir and ordered that he be reinstated. Although this occurred,
and the employee’s role was still available at the abattoir, the issue
that arose (and which the High Court found was a breach
of the
Commission’s orders), was that the employee was not actually given any
work in that role. It is not a close analogy,
but I accept in making the
reinstatement order, consistently with
Blackadder
, the order would
require Qantas to take steps to ensure the reinstated employees are given back
their jobs. This would happen if
I ordered reinstatement (notwithstanding all
the delay, cost and complications not evident in a case like
Blackadder
),
but this does not mean that retrenchment would not happen as soon as Qantas was
advised by its industrial relations team and specialised
industrial relations
solicitors that it could do it legally; nor does it make global reinstatement
appropriate, when other, more
appropriate remedies, are available in these
unusual circumstances. The commercial reality of the situation must bear some
importance
in exercising the broad discretion in s 545(1) of the FWA.
158 The weight of all the considerations raised by the Union (each of which I
have taken into account) when balanced with all relevant
considerations I have
identified, suggest that the overwhelmingly appropriate remedy is compensation
and compensation alone (where,
among other things, the Court can engage in the
proper exercise of evaluating the competing possibilities and attaching a value
to
the lost opportunity of future earnings and also assess other loss, including
non-pecuniary loss). I stress that I am dealing with
a compensatory and remedial
remedy at the Reinstatement Hearing. Pecuniary penalties appropriately fashioned
to serve the need of
specific and general deterrence will appropriately address
the Union’s concern, expressed repeatedly, that absent reinstatement,
Qantas and QGS will be perceived as having “gotten away with”
contravening conduct.
159 I should also turn to arguments advanced by Qantas and QGS, to which I
attach little or no weight:
(1) Although Qantas and QGS in its written submissions relied significantly on
prejudice to third parties, although not irrelevant,
I do not regard this as a
particularly significant factor (given that at all material times it was plain
as a pikestaff that a reinstatement
order would be sought). There will be some
prejudice to the contractors, which would not exist if compensation was ordered;
for example,
each contractor would potentially lose the benefit of the contracts
they entered into with Qantas (subject to the terms of those
contracts), but
there is no basis to conclude that these contractors would not have been fully
aware of this risk. If the contractors
were not aware of the dispute and the
related fact that the Union was seeking reinstatement, the contractors would
have had to have
been the aviation equivalent of Rip Van Winkle. Moreover,
Qantas and QGS accepted that the terms of those contracts meant, at least
for
some contractors, a remedy would be available to contractors to alleviate such
prejudice in the form of loss of bargain damages.
More relevantly, however, I do
accept that a number of employees of those contractors could possibly see their
positions made redundant
and it is reasonable to infer that they may be
retrenched, although there was little or no evidence as to the likelihood of
this
occurring and the specifics of this prejudice.
(2) Also connected to prejudice was the submission of Qantas that if it was
deprived of the costs saving realised because of outsourcing,
that cost saving
(made all the more urgent by the extended effects of the pandemic) would need to
be realised elsewhere, and this
“would adversely impact other employees
within the Qantas Group”. This might be the case, but on the material
before
me, it is far too speculative to be a prejudice of any significance. For
example, for all I know, significant savings might be achieved
by addressing any
imbalance between the remuneration paid to the highest ranking executives in the
Qantas business, as compared to
the average remuneration of other Qantas staff.
It would be stretching matters to suggest that this would be a
“prejudice”
of any weight to which the Court should pay any regard.
Further, for all I know, additional Commonwealth Government subsidies may
be
provided to Qantas (as has been the case during recent times when its finances
have been devastated by the effects of the pandemic).
It is all speculative and
nothing much can be made of this factor relied upon by Qantas and QGS.
(3) Any suggested prejudice because of the exposure of Qantas to loss of bargain
damages or other compensatory damages (arising upon
a repudiation by Qantas or
an inability to perform the contracts entered into with the contractors) is, to
my mind, of little moment.
Qantas was well aware that reinstatement relief was
being sought when it bargained with the contractors, and made a commercial
choice
it would not seek to pay the contractual price of ensuring it could
terminate the contracts at its election. That may be entirely
rational
commercial behaviour, but running this risk does not give rise to prejudice of
any significance in the circumstances of
this case.
(4) Findings were made above as to the forensic choice of the Union to eschew
injunctive relief and the prospect of any early hearing.
Qantas says the
Union’s “election not to seek interim relief might not be a defence
against final relief per se, [but]
such an applicant must live with the
consequences of their choice”. This is true in a limited sense (because a
global reinstatement
order would have been unnecessary if the Union had secured
an interlocutory injunction or obtained a finding of contravening conduct
prior
to the outsourcing decision being implemented). But a wariness in providing an
undertaking as to damages (which had been flagged
by Qantas) was understandable,
and the delay of the Union was not an unreasonable one. More fundamentally, as I
explained above,
the relevant consideration is whether there is an element of
injustice occasioned to either a party or third parties that would not
have been
present had the relief been sought without any proven relevant delay. I do not
consider that any element of injustice as
identified by Qantas and QGS was
caused by delay of the Union – certainly not the involvement of
contractors in circumstances
where there was no evidence Qantas and QGS were not
fully aware there was a risk the Union would seek reinstatement.
(5) Qantas and QGS are perfectly entitled to maintain that I misconceived what
went on in 2020 and fell into error; that is for others
to decide. But unless
they are set aside, the findings in the principal judgment and declaratory
judgment stand. One of the submissions
made by Qantas and QGS at the
Reinstatement Hearing sought to minimise those findings and, more generally,
Qantas and QGS seemed
to exhibit a certain insouciance about them. It was
submitted expressly that this is “a case where there has been no positive
finding to the effect that the impugned decision was for an unlawful
purpose”. This overlooks the fact that both Mr Jones and
Mr Hughes were
expressly found to have been motivated by the unlawful purpose proscribed by s
340(1)(b). The implicit suggestion
that the nature of the findings of
contravention by Qantas mean that the remedial response contended for by the
Union is inapposite,
is incorrect.
160 Finally, for completeness I should note that given I have not reached the
level of satisfaction to conclude that the Union incited
or aided the making of
the Facebook posts as alleged, it is unnecessary to consider any question as to
whether such conduct would
amount to a form of disentitling conduct of
sufficient seriousness to be relevant to the exercise of discretion and, in
particular,
how any such conduct by a representative would impact upon the
relief sought for the benefit of those represented (a notion which
raises
interesting questions, but was not explored by either party before me).
H CONCLUSION AND ORDERS
161 For the reasons that I have explained it is not
appropriate to make a global reinstatement order. I foreshadowed to the parties
in advance of the Reinstatement Hearing my intention of delivering reasons
promptly, and to grant leave to appeal from an order that
I made either granting
or refusing the global reinstatement order. Accordingly, I grant leave to appeal
from the order refusing relief
on the conditions that a notice of appeal is
filed with sufficient promptitude to allow directions to be made to allow any
appeal
to be heard at the same time as the existing application for leave to
appeal (if such a course commends itself to the Full Court).
162 Following the determination of the extant application for leave to appeal
and any subsequent appeal, if the declarations made
relating to contravening
conduct are not set aside, then I will conduct a case management hearing to
consider the timetabling of
an application for relief by way of compensation,
and also for the hearing of the application for imposition of a pecuniary
penalty.
163 By way of final remark, I note that I expressed to the parties my real
concern about what occurred in relation to the Facebook
posts.
Prima
facie
, there is a reasonable basis to suspect that outsourced employees were
being encouraged, via the medium of Facebook, to make potentially
false
representations in answer to the survey, in circumstances where the makers of
the Facebook posts potentially knew that a survey,
skewed by those false
representations, would be placed before the Court in evidence. I need not dwell
on the fact that if such allegations
were proved to the requisite standard, when
the complete picture including purpose was examined, that would be a serious
matter.
I have considered whether I should invite the legal representatives for
the makers of the Facebook posts and, in particular, Ms Sheets-Chavolla,
to show
cause as to why the papers ought not to be referred for possible further action
in relation to this matter. On balance, however,
I think that the folly of what
occurred (to the extent it has been revealed in the evidence before me) has been
exposed, and has
been sufficiently brought to the attention of those who engaged
in this wholly misguided conduct, and it is unnecessary, on my own
motion, to
take any further steps. Qantas and QGS have not indicated that they wish to take
any steps in this regard.
I certify that the preceding one-hundred-and-sixty-three (163) paragraphs
are a true copy of the Reasons for Judgment of the Honourable
Justice Lee.
Associate:
Dated: 18 December 2021
ANNEXURE A
A
. Introduction
1. ***
2. This document is divided into the following sections:
Section
B
outlines the structure of the Qantas Airports Ground Operations;
Section
C
details the implementation of the outsourcing decision and associated
steps;
Section
D
presents the Counterfactual;
Section
E
outlines the ongoing stand downs of employees in 2021;
Section
F
delineates the benefits of outsourcing; and
Section
G
details the response to reinstatement.
3. ***
4. Where applicable and unless the context otherwise indicates, capitalised
terms represent defined terms as they appear in the Amended
Statement of Claim,
the Defence and the Agreed Background Facts, and have the same meaning.
B. Structure of the Qantas Airports Ground Operations
5. Qantas Airports Ground Operations was a business function within Qantas.
Qantas Airports Ground Operations provided ground handling
services (ramp,
baggage handling and fleet presentation) across the Airports on behalf of Qantas
and under contract for other third
parties including Group companies as well as
airlines outside of the Group (e.g. American Airlines).
6. Work performed on Qantas aircraft represented around 73% of ground handling
activity within Qantas Airports Ground Operations
(i.e. around 73% of the
aircraft worked on by the Affected Employees was Qantas aircraft), with the
remaining around 27% being work
performed on third parties’ aircraft (i.e.
around 27% of the aircraft worked on by the Affected Employees was non-Qantas
aircraft,
including approximately 21% for wholly owned Qantas subsidiaries and
approximately 6% for other entities outside the Qantas group).
The work
performed on non-Qantas aircraft defrayed some of the fixed overheads of ground
handling and improved the utilisation of
the Affected Employees.
7. In or around November 2020, Qantas formed the view that third party
ground-handling provider proposals received by Qantas during
the RFP process
demonstrated that by outsourcing Qantas’ remaining Ground Operations,
Qantas could achieve $103m per annum
in savings when compared to pre-COVID
Ground Operations.
8. To perform this work there were dedicated people, assets, infrastructure and
functions. Specifically:
at
the time of the decision to outsource Qantas Airports Ground Operations, there
were approximately 1820
Affected Employees
performing Ground
Operations work. After redeployments and job swaps, there were approximately
1683 employees performing Ground Operations
work
(
Outsourced
Employees
)
, made up of approximately:
550
employed by Qantas; and
1133
employed by Qantas Ground Services Pty Limited (
QGS
);
for
the purposes of the relationship with Qantas Airport Ground Operations, QGS was
solely a labour hire provider engaged pursuant
to the terms of a Service Level
Agreement (
SLA
);
in
addition to the Affected Employees, there were in the vicinity of 150 to 200
employees of Qantas engaged to support the Qantas
Airports Ground Operations
(including, by way of example, workforce planning and management);
Qantas
owned and operated around 2600 items of GSE across the Airports. This ranged
from baggage containers to motorised pushback
tugs and pallet loading devices,
all of which were critical to providing ground handling services. Equipment was
maintained by around
30 to 50 dedicated employees within the GSE function who
would undertake proactive and reactive maintenance (for example if equipment
broke during the course of the operation and needed to be quickly
repaired);
property
was leased from Airport Authorities within terminals to provide employee
changing rooms, rest and meal break areas as well
as offices and training rooms.
Airside areas were leased to store and operate GSE and any other infrastructure
to operate ground
handling;
Ground
Operations manpower was planned and allocated by around 90 dedicated workforce
planning resources. Around half of these were
based in a centralised function in
Sydney and generally undertook planning functions. The remainder were airport
based and were responsible
for day to day allocation of resources using
specialised workforce planning systems and tools; and
Qantas
Airports Ground Operations were overseen by around 40 to 60 dedicated Qantas and
QGS managers across the Airports with responsibility
for all safety, people,
customer and commercial outcomes including day to day leadership of the Affected
Employees.
9. Following the announcement of the outsourcing decision on 30 November 2020
(
Outsourcing Decision
) and subsequent implementation of the Outsourcing
Decision the following actions were taken in relation to Qantas Airports Ground
Operations:
seven
external third party ground handling contracts were terminated or have been the
subject of notice of termination issued by the
external third party to Qantas
(which are due to take effect shortly);
all
Ground Operations roles were made redundant, and all the Affected Employees were
either retrenched or redeployed into the Qantas
Group;
approximately
2600 items of GSE were disposed of through sale to third parties;
approximately
24 GSE maintenance engineer roles and various other head office roles were made
redundant;
32
leases were returned to Airport Authorities and a further 33 were sublet to
incoming third party ground handling service providers
(
Ground Handling
Companies
);
the
workforce planners referred to at paragraph
8.f
above were made
redundant, with almost all such employees leaving Qantas; and
the
Qantas and QGS Ground Operations managers referred to at paragraph
8.g
above were
retrenched.
10. Qantas and QGS operated in accordance with the SLA in relation to ground
handling services provided by QGS to Qantas at the Airports
until the
arrangement concluded with respect to the Airports.
11. QGS ultimately ceased providing services to Qantas at the Airports pursuant
to the SLA around April 2021, however, the extent
of these services
progressively reduced from December 2020 onwards.
12. Following the implementation of outsourcing to the Ground Handling
Companies, the Qantas Airports Ground Operations business
ceased to exist and
its people, assets, infrastructure and related support functions are no longer a
part of the Qantas Group.
13. In order for the respondents to comply with global reinstatement orders of
the kind sought in paragraphs 1 to 5 of the applicant’s
Points of Claim
dated 25 August 2021, Qantas would need to substantially recreate its Qantas
Airports Ground Operations business.
14. Qantas’ ability to implement the steps set
out in paragraphs
15
to
16
to below is contingent on various
factors, including:
Qantas
having the necessary funds in order to undertake the capital expenditure
identified;
the
availability in the market of suitably qualified personnel for each of the roles
identified, including for specialised roles such
as workforce planning; and
the
availability in the market of the necessary GSE.
15. In order to do this, Qantas would need to take a
significant number of steps (many of which are not within the current control
of
Qantas) including (but not limited to):
Ground services
equipment
Qantas
would be required to buy back approximately 2600 items of GSE from the Ground
Handling Companies at a projected cost of at
least $5 million. This amount could
be higher if Qantas is unable for any reason to acquire sufficient GSE from the
Ground Handling
Companies and is required to go to market;
Qantas
has previously assessed that it would be required to upgrade the required GSE to
meet safety-based modernisation requirements,
with a projected cost of in the
order of $24 million as an initial tranche (i.e. within 12 months of any
reinstatement order). Over
five years, it is estimated that safety upgrades to
GSE would cost $80 million; and
Qantas
would be required to recruit, train and employ up to 50 GSE maintenance
engineers across 10 ports to provide maintenance services
in respect of the
required GSE, with a projected cost of approximately $0.5m as one-off costs for
onboarding and training and then
ongoing salary costs of around $5million per
year.
Leasing arrangements
Qantas
would be required to seek to make arrangements with the Ground Handling
Companies and airport authorities to re-lease (if possible)
Qantas terminal and
airside spaces which if agreed would have a projected total cost of
approximately $15 million per year.
Workforce planning
On
the assumption that they were available in the market, Qantas would be required
to recruit, train and employ workforce planners
(noting that prior to the
decision to outsource the Ground Operations Qantas employed around 90
individuals to perform this work
at a cost of approximately $6.7 million per
year) to provide workforce planning services in respect of reinstated Affected
Employees;
and
Qantas
would be required to purchase new licenses for the “GroundStar”
workforce planning tool (which licenses were surrendered
following the
implementation of the Outsourcing Decision), with projected total costs in the
order of $550,000 comprised of:
$500,000
per year in order to support the additional licences for each reinstated
employee; the additional time and attendance devices
to be installed; IT
infrastructure costs; and IT support costs; and
$50,000
as a one-off cost to reinstate necessary associated
equipment.
Management
Qantas
would be required to recruit, train and employ up to 50 ground operations
executive managers across 10 ports to provide leadership
services in respect of
reinstated Affected Employees, with a projected cost of in the order of $7
million per year in salary costs.
Labour
Qantas
does not expect to reach its pre-COVID activity levels in FY22. Depending on the
level of flying activity and number of Affected
Employees reinstated, Qantas may
not require all of the Affected Employees to perform Ground
Operations.
16. As identified at
paragraph 6 above, prior to the Outsourcing Decision being implemented, around
27% of the Ground Operations work
performed by the Affected Employees was
performed under contract for third parties (including approximately 21% for
wholly owned
Qantas subsidiaries and approximately 6% for other entities outside
the Qantas group including other international airlines). Since
the
implementation of the Outsourcing Decision, seven of the external third party
contracts have been terminated, or been the subject
of notice of termination
issued by the external third party to Qantas (which is due to take effect
shortly), and the remainder have
been subcontracted to the Ground Handling
Companies. Accordingly, such ground handling work is now being performed by
other ground
handling service providers. If reinstatement were ordered for some
or all of the Affected Employees, depending on the level of flying
activity, and
the number of Affected Employee reinstated, Qantas may need to seek to enter
contractual arrangements to provide Ground
Operations services to third parties
(including the wholly owned Qantas subsidiaries) in order to
‘replace’ this work
that has since been lost. Qantas currently
retains contracts with at least three third party airlines who are not currently
operating.
17. The on boarding of non-Affected Employees staff alone, even if such staff
were immediately available in the market (which may
not be the case for certain
roles, such as workforce planners, operational managers, head office staff, and
other related roles),
would require security checks, training and certification
(even for former staff).
17A. A new labour model may also need to be designed to implement new
operational processes to support an integrated Ground Operations
model (i.e.,
with both Ground Handling Companies and QGS/Qantas employees performing the same
work at the Airports).
C Implementation of outsourcing decision and associated
steps
Redundancies – including that Affected
Employees did not avail themselves of opportunities to remain employed by Qantas
or QGS
18. On 10 December 2020, Qantas and QGS respectively
launched a preference process through an electronic form giving the Affected
Employees the opportunity to express their interest in:
redundancy
with an exit date in January, February or March 2021;
job
swap opportunities with other areas of the business; and/or
other
redeployment opportunities within the Qantas Group (in respect of which the
Affected Employees were provided with a list of
current vacancies to assist with
understanding the current opportunities for redeployment).
19. On 11 December 2020, the Applicant by its solicitors, Maurice Blackburn,
wrote to the solicitors for Qantas, Herbert Smith Freehills,
requesting that
Qantas provide an undertaking that:
Qantas
will not terminate the employment of the Affected Employees employed by Qantas;
and
Qantas
will not terminate its contract or contracts with QGS; cease to engage QGS; or
otherwise cease making use of the services of
QGS, in relation to the provision
of ground handling services.
20. On 14 December 2020, Qantas by its solicitors wrote to the solicitors for
the Applicant:
indicating
that no decision consequent on the 30 November 2020 announcement had been made;
and
declining
to give the requested undertaking, noting the Applicant had not by its letter
offered any corresponding undertaking as to
damages.
21. On 16 December 2020, the preference process
closed and by that date 1,455 Affected Employees (approximately 80% of the
Affected
Employees) submitted a preference across Qantas and QGS:
469
Qantas employees responded as follows:
21
employees indicated they were “not interested” in any job swap
opportunities, redeployment opportunities or redundancy
exit dates;
33
employees elected a first preference for job swap opportunities;
12
employees elected a first preference for other redeployment opportunities within
the Qantas Group; and
403
employees elected a first preference for redundancy exit dates
with:
1. 99 expressing a preference to
exit in January 2021;
2. 25 expressing a preference to exit in February 2021;
and
3. 279 expressing a preference to exit in March
2021;
986
QGS employees responded as follows:
60
employees indicated they were “not interested” in any job swap
opportunities, redeployment opportunities or redundancy
exit dates;
160
employees elected a first preference for job swap opportunities;
62
employees elected a first preference for other redeployment opportunities within
the Qantas Group; and
704
employees elected a first preference for redundancy exit dates
with:
1. 278 expressing a preference
to exit in January 2021;
2. 73 expressing a preference to exit in February 2021; and
3. 353 expressing a preference to exit in March
2021.
22. On 31 December 2020, 32 Affected Employees elected to take an accelerated
redundancy and exited Qantas and QGS respectively.
23. Between 6 January and 18 January 2021, Qantas sought expressions of interest
for voluntary redundancy across Qantas Commissionaires,
Qantas Freight,
Australian Air Express Freight, QGS Commissionaires, QGS Freight and QGS QLINK
workgroups in order to provide the
Affected Employees with redeployment
opportunities through job swaps.
136 Qantas employees and 44 QGS
employees expressed an interest in voluntary redundancy as a result of this
process.
24. Between 12 January and 24 January 2021, Qantas conducted a role preference
process where Affected Employees who opted into the
preference process could
elect a preference for either job swap or redeployment opportunities. This
process was also made available
to any Affected Employee who opted into the
process after the preference process described in paragraph
18
above closed on 16 December 2020.
25. Between 2 February and 19 September 2021, Affected Employees who elected to
take redundancy, withdrew from the preference process,
or were ultimately not
redeployed in the preference process, ended their employment with Qantas and QGS
as follows:
TABLE 1: Month of Departure of
Affected Employees
Month of departure (2021)
Number of Affected Employees
February
1058
March
549
April
41
May
2
September
1
Total
1651
26. Between 14 February and 26 May 2021, 137 Affected Employees were redeployed
(including job swaps), with the timing of those redeployments
depending on
operational requirements. 129 Affected Employees were redeployed through a job
swap and eight Affected Employees took
up other redeployment opportunities.
27. All Qantas employees (45 employees) who expressed an interest in a job swap
or redeployment opportunity through the preference
process referred to in
paragraph
18
were offered a
redeployment or job swap opportunity. Of those employees:
44
Qantas employees were redeployed within the Qantas Group;
One
Qantas employee withdrew from the preference process.
28. Approximately 100 additional job swaps were offered to Qantas employees but
were not taken up.
29. Of the 222 QGS employees who expressed an interest in a job swap or
redeployment opportunity through the preference process referred
to in paragraph
18
:
93
QGS employees were redeployed within the Qantas Group;
72
QGS employees withdrew their preference for a job swap or redeployment;
the
remainder were either offered a redeployment opportunity in Qantas Freight but
did not pass the required medical examination;
or were not offered a
redeployment opportunity.
Disposal of Ground
Services Equipment (
GSE
)
30. Following the announcement of the Outsourcing Decision:
The
Qantas Group has disposed of approximately 2600 items of GSE it owned at nominal
book value to the Ground Handling Companies (the
other GSE being utilised by
Engineering, Freight and QantasLink);
The
Qantas Airports business has relinquished 32 of the 65 leases for storage/use of
GSE it had previously held with external parties
and sub-let the remaining 33
leases to airport sites for use by the Ground Handling
Companies.
Contracts with
Third Party Ground Handling Companies
31. Qantas has entered into contracts with Ground Handling Companies for the
provision of ground handling services (Ramp and Baggage,
and Fleet Presentation)
previously performed by the Affected Employees at each of the
Airports:
Sydney
International:
Ramp
and Baggage: dnata Airport Services Pty Limited (
dnata
) by an agreement
dated 28 January 2021 for the provision of the ground handling services detailed
in Attachment 1 and Attachment
2 to the agreement. The agreement is for an
Initial Term of three years from the Effective Date (18 January 2021) with the
services
to be provided from 27 January 2021.
Fleet
Presentation: Airline Cleaning Services Pty Ltd t/a Cabin Services Australia
(
Cabin Services
) by an agreement dated 22 January 2021 for the provision
of the ground handling services detailed in Attachment 1 and Attachment
2 to the
agreement. The agreement is for an Initial Term of two years from the Effective
Date (18 January 2021) with the services
to be provided from 29 January
2021.
Sydney
Domestic:
Ramp
and Baggage: Swissport Pty Ltd (
Swissport
) by an agreement dated 22
January 2021 for the provision of the ground handling services detailed in
Attachment 1 and Attachment
2 to the agreement. The agreement is for an Initial
Term of five years from the Effective Date (21 January 2021) with the services
to be provided by 1 April 2021.
Fleet
Presentation: Star Aviation Australia Pty Limited (
Star Aviation
) by an
agreement dated 21 January 2021 for the provision of the ground handling
services detailed in Attachment 1 and Attachment
2 to the agreement. The
agreement is for an Initial Term of two years from the Effective Date (18
January 2021) with the services
to be provided from 27 January
2021.
Melbourne
International:
Ramp
and Baggage: dnata by an agreement dated 28 January 2021 for the provision of
the ground handling services detailed in Attachment
1 and Attachment 2 to the
agreement. The agreement is for an Initial Term of three years from the
Effective Date (18 January 2021)
with the services to be provided from 16
February 2021.
Fleet
Presentation: Star Aviation by an agreement dated 21 January 2021 for the
provision of the ground handling services detailed
in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of two years
from the Effective Date (18
January 2021) with the services to be provided from
29 January 2021.
Melbourne
Domestic:
Ramp
and Baggage: Swissport by an agreement dated 22 January 2021 for the provision
of the ground handling services detailed in Attachment
1 and Attachment 2 to the
agreement. The agreement is for an Initial Term of five years from the Effective
Date (21 January 2021)
with the services to be provided by 1 April 2021.
Fleet
Presentation: Cabin Services by an agreement dated 22 January 2021 for the
provision of the ground handling services detailed
in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of two years
from the Effective Date (18
January 2021) with the services to be provided from
27 January 2021.
Brisbane
International:
Ramp
and Baggage: dnata by an agreement dated 28 January 2021 for the provision of
the ground handling services detailed in Attachment
1 and Attachment 2 to the
agreement. The agreement is for an Initial Term of three years from the
Effective Date (18 January 2021)
with the services to be provided from 8 March
2021.
Fleet
Presentation: Cabin Services by an agreement dated 22 January 2021 for the
provision of the ground handling services detailed
in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of two years
from the Effective Date (18
January 2021) with the services to be provided from
27 January 2021.
Brisbane
Domestic:
Ramp
and Baggage: Australian Airsupport Pty Ltd (
Australian Airsupport
) by an
agreement dated 22 January 2021 for the provision of the ground handling
services detailed in Attachment 1 and Attachment
2 to the agreement. The
agreement is for an Initial Term of three years from the Effective Date (18
January 2021) with the services
to be provided from 31 March 2021.
Fleet
Presentation: Star Aviation by an agreement dated 21 January 2021 for the
provision of the ground handling services detailed
in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of two years
from the Effective Date (18
January 2021) with the services to be provided from
27 January 2021.
Perth:
Ramp
and Baggage: Skystar Airport Services Pty Ltd by an agreement dated 22 January
2021 for the provision of the ground handling
services detailed in Attachment 1
and Attachment 2 to the agreement. The agreement is for an Initial Term of three
years from the
Effective Date (18 January 2021) with the services to be provided
by 1 April 2021.
Fleet
Presentation: Cabin Services Australia by an agreement dated 22 January 2021 for
the provision of the ground handling services
detailed in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of two years
from the Effective
Date (18 January 2021) with the services to be provided from
27 January 2021.
Adelaide:
Ramp
and Baggage: Oceania Aviation Services (
Oceania Aviation
) by an agreement
dated 21 January 2021 for the provision of the ground handling services detailed
in Attachment 1 and Attachment
2 to the agreement. The agreement is for an
Initial Term of three years from the Effective Date (18 January 2021) with the
services
to be provided by 1 April 2021.
Cairns:
Ramp
and Baggage: Menzies Aviation (Ground Services) Australia Pty Ltd (
Menzies
Aviation
) by an agreement dated 22 January 2021 for the provision of the
ground handling services detailed in Attachment 1 and Attachment
2 to the
agreement. The agreement is for an Initial Term of three years from the
Effective Date (18 January 2021) with the services
to be provided from 29 March
2021.
Darwin:
Ramp
and Baggage: Menzies Aviation by an agreement dated 22 January 2021 for the
provision of the ground handling services detailed
in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of three
years from the Effective Date (18
January 2021) with the services to be provided
from 12 March 2021.
Canberra:
Ramp
and Baggage: Swissport by an agreement dated 22 January 2021 for the provision
of the ground handling services detailed in Attachment
1 and Attachment 2 to the
agreement. The agreement is for an Initial Term of five years from the Effective
Date (21 January 2021)
with the services to be provided by 1 April
2021.
Townsville:
Baggage,
Ramp and Fleet Presentation: dnata by an agreement dated 28 January 2021 for the
provision of the ground handling services
detailed in Attachment 1 and
Attachment 2 to the agreement. The agreement is for an Initial Term of three
years from the Effective
Date (18 January 2021) with the services to be provided
from 22 March 2021.
Alice
Springs:
Ramp
and Baggage: Northwest Aviation Services Pty Ltd (
Northwest Aviation
) by
an agreement dated 21 January 2021 for the provision of the ground handling
services detailed in Attachment 1 and Attachment
2 to the agreement. The
agreement is for an Initial Term of three years from the Effective Date (18
January 2021) with the services
to be provided from 8 February
2021.
(Individually, a
Third Party
Contract
, together, the
Third Party
Contracts
)
32. Each Third Party Contract with Swissport provides:
no
provision for the Third Party Contract to be terminated for convenience (Annex
B, cl 8.2).
that
Qantas will not appoint any other person, company or organisation to provide the
contracted services unless Swissport is unable
or unwilling to continue to
supply the contracted services, either temporarily or at all (Annex B, cl 2.6).
no
limitation or cap on liability for breach or unlawful termination of the Third
Party Contract.
33. Each Third Party Contract with dnata provides:
that
the Third Party Contract may be terminated for convenience by Qantas at any time
after the Initial Term on 60 days’ notice
in writing (Annex B, cl
8.2).
that
Qantas may terminate any part of the Services at the relevant location under the
Third Party Contract on at least 90 days’
notice. Where Qantas terminates
part of the Services, the Rates applicable at that location will be reduced by a
reasonable amount
to reflect the reduced Services, but having regard to the
Ground Handling Company’s fixed costs (Annex B, cl 8.2).
that
nothing in the Third Party Contract prevents or restricts Qantas from receiving
any services otherwise to be performed by the
relevant Ground Handling Company
from any other person or entity in circumstances where that Ground Handling
Company is unable or
unwilling to continue to supply the Services either
temporarily or at all (Annex B, cl 2.5).
no
limitation or cap on liability for breach or unlawful termination of the Third
Party Contract.
34. Each Third Party Contract with Australian Airsupport, Cabin Services,
Menzies Aviation, and Skystar Airport Services Pty Ltd
provides:
that
the Third Party Contract may be terminated for convenience by Qantas at any time
after the Initial Term on 60 days’ notice
in writing (Annex B, cl
8.2).
that
nothing in the Third Party Contract prevents or restricts Qantas from receiving
any services otherwise to be performed by the
relevant Ground Handling Company
from any other person or entity in circumstances where that Ground Handling
Company is unable or
unwilling to continue to supply the Services either
temporarily or at all (Annex B, cl 2.5).
no
limitation or cap on liability for breach or unlawful termination of the Third
Party Contract.
34A. The Third Party Contract with
Oceania Aviation provides:
that
the Third Party Contract may be terminated for convenience by Qantas at any time
after the Initial Term on 60 days’ notice
in writing (Annex B, cl
8.2).
nothing
in this Third Party Contract prevents or restricts Qantas from receiving any
services that would otherwise be performed by
the Ground Handling Company from
other entities (Annex B, cl 2.5).
no
limitation or cap on liability for breach or unlawful termination of the Third
Party Contract.
35. Each Third Party Contract with Star Aviation and Northwest Aviation
provides:
that
the Third Party Contract may be terminated for convenience by Qantas at any time
on 60 days’ notice in writing (Annex B,
cl 8.2).
nothing
in this Third Party Contract prevents or restricts Qantas from receiving any
services that would otherwise be performed by
the relevant Ground Handling
Company from other entities (Annex B, cl 2.5).
no
limitation or cap on liability for breach or unlawful termination of the Third
Party Contract.
36. The Third Party Contracts provide that the relevant Ground Handling Company
is to:
[1]
provide
the required GSE to perform the contracted services; and
ensure
that the GSE used in the provision of the contracted services complies with
certain age requirements.
37. On Disengagement (meaning the event in which, upon termination or expiration
of the agreement, a Ground Handling Company is no
longer required to provide the
contracted services):
[2]
each
Third Party Contract, except the Third Party Contracts with dnata and Cabin
Services, provides that:
the
Ground Handling Company will offer Qantas the option to purchase the GSE owned
and used by the Ground Handling Company in the
provision of the contracted
services, or to nominate a third party to purchase the relevant GSE;
and
ii. Qantas or its nominated
purchaser may acquire some or all of the GSE offered for sale. Depending on the
contract, the purchase
price is set as either the net book value of the relevant
GSE as at the date Qantas or its nominated purchaser accepts the offer
to
purchase or the date the Handling Company made the purchase
offer.
each
Third Party Contract with dnata, provides that:
the
Ground Handling Company will offer Qantas the option to purchase the GSE owned
and used by the Ground Handling Company in the
provision of the contracted
services except for certain categories of GSE or GSE required by the Ground
Handing Company to continue
to service its other existing client airlines, or to
nominate a third party to purchase the relevant GSE; and
Qantas
or its nominated purchaser may acquire some or all of the GSE offered for sale.
The purchase price is set as the net book value
of the relevant GSE as at the
date the Handling Company made the purchase
offer.
each
Third Party Contract with Cabin Services provides that:
the
Ground Handling Company will offer Qantas the option to purchase the GSE owned
by the Ground Handling Company limited to GSE acquired
by the Ground Handling
Company from Qantas as part of the Third Party Contract start-up and used in the
provision of the contracted
services, or to nominate a third party to purchase
the relevant GSE; and
Qantas
or its nominated purchaser may acquire some or all of the GSE offered for sale.
The purchase price is set as the net book value
of the relevant GSE as at the
date the Handling Company made the purchase
offer.
37A. Under the Third Party Contracts, each of the
Ground Handling Companies acknowledge that continuity of the services is
critical
and agrees to provide Disengagement Assistance during the Disengagement
Period (as defined in each Third Party Contract as a period
following
Disengagement, i.e., following the termination or expiration of the Third Party
Contract in accordance with the terms of
that Third Party Contract).
D The Counterfactual
Current
status of the Pandemic
38. Since Australia closed its international borders on 20 March 2020, the
almost total cessation of international commercial passenger
flights (except
repatriation flights):
has
continued throughout 2020 and 2021;
is
unlikely to be lifted to any extent before November 2021.
39. Since
approximately mid-2021, the Delta variant of the Covid-19 virus has emerged in
parts of Australia, especially in Sydney
and Melbourne, leading to:
a
lockdown in Sydney and parts of NSW since late June 2021;
a
lockdown in Melbourne since August 2021;
interstate
border closures, including Western Australia and Queensland effectively closing
their border to NSW and Victoria;
the
New Zealand government suspending the Trans-Tasman travel bubble with Australia
since 26 June 2021; and
ongoing
quarantine requirements attaching to any permitted international travel and most
interstate travel.
40. On
6 August 2021, the National Cabinet released a ‘National Plan’ to
transition out of ongoing lockdowns, border closures,
quarantining and other
restrictions, premised upon incremental milestones reached in respect of
Australia’s vaccination rates.
41. Under the National Plan, the existing lockdowns, border closures and other
restrictions on movement will not be significantly
relaxed until 80% of the
Australian population (over 16 years) as a national average is fully vaccinated
(the 80% target).
42. Based on current predictions for the take-up of vaccinations, the 80% target
is unlikely to be reached before December 2021.
43. The State and Territory Governments are setting their own plans for the
nature and extent and timing of any relaxation of any
lockdowns, border closures
and other restrictions in force in their respective jurisdictions.
44. Most State and Territory Governments have not committed to easing border
closures or quarantine requirements affecting interstate
travel before 2022,
even if the 80% target is reached before then.
Impact of the
Pandemic on Qantas
45. On 3 August 2021, Qantas released an announcement on the ASX that it had
stood down around 2,500 frontline Qantas and Jetstar
employees for an estimated
two months due to a significant drop in flying activity caused by new COVID-19
restrictions in NSW. This
is in addition to 6,000 Qantas Group employees who
were already stood down for an extended period due to zero scheduled
international
services.
46. On 26 August 2021, Qantas announced to the ASX that it would have to extend
the stand down of domestic crew and airport staff
beyond the eight weeks
previously announced.
47. In that ASX announcement, Qantas announced its intention to restart flights
from Australia to certain international destinations
from mid-December 2021.
48. Since that ASX announcement, the number of stood down employees has
increased to a total of 10,000 employees (which includes
6000 employees stood
down who worked in Qantas’ international operations).
Financial matters
49. On 26 August 2021, the Qantas Group released its full year results for
FY2021. Those results included, among other things:
a
$1.826 billion underlying before tax loss for FY2021;
a
$2.351 billion statutory before tax loss for FY2021; and
total
revenue of $5.934 billion.
50.
Table 2
below sets out a comparison of financial results of the
Qantas Group for:
FY2021
(full year);
FY2020
(full year);
HY2020
(half year, as at 31 December 2020); and
FY2019
(full year, being the last full year financial results prior to the onset of the
COVID-19 pandemic).
TABLE 2:
Comparison of Qantas Group Financial Results for FY2021, FY2020, HY2020,
FY2019
[3]
FY2021
($M)
(% against FY2019)
FY2020
($M)
(% against FY2019)
HY2020
($M)
FY2019
($M)
Revenue and other income
5,934
(33%)
14,257
(79%)
9,464
17,966
Net passenger revenue
3,766
(24%)
12,183
(78%)
8,305
15,696
Underlying before tax profit (loss)
(1,826)
(N/A)
124
(9%)
771
1,326
Statutory before tax profit (loss)
(2,351)
(N/A)
(2,708)
(N/A)
648
1,192
Net debt
(5,890)
(125%)
(4,734)
(100%)
(5,273)
(4,710)
Cash and cash equivalents
$2.2B
(100%)
$3.5B
(159%)
$1.74B
$2.2B
51. As is shown in Table 2 above, the Qantas Group has reported approximately
$5.0b in cumulative statutory losses for FY2020 and
FY2021. Based on publicly
available information, this is expected to grow to around $6.0b cumulative
statutory losses by the end
of FY2022.
52. Over FY2020 and FY2021, to support the Qantas Group’s operations
through the COVID-19 pandemic, the Qantas Group raised
in excess of $2.5b in
debt (both Secured and Unsecured) and $1.4b in equity – a total of $3.9b
in additional funding. Net debt
and Cash quoted in Table 2 incorporate this
liquidity. An additional $0.5b in debt has also recently been announced through
an unsecured
bond placement.
53. This additional funding has been necessary to support the Qantas
Group’s operations through the COVID-19 pandemic, but
has placed
considerable pressure on the balance sheet position.
Group Level Pre/Post-Pandemic Flying Activity
54.
Table 3
in Appendix 1 sets out the total number of flights,
passengers carried, and “Available Seat Kilometres” (
ASKs
)
and “Revenue Passenger Kilometres” (
RPKs
) on flights operated
by the Qantas Group (excluding Jetstar Asia) in FY2021, FY2020 and FY2019, for
the Qantas Groups’ domestic
and international networks. The table shows
the total number of departures of regular public transport (
RPT
) flights
(which excludes charter, international freight assistance mechanism and
repatriation flights).
For the purposes of that Table:
ASK
measures the total number of seats on all flights multiplied by
the distance they travel. Each kilometre travelled by each seat on
each flight
is 1 ASK.
RPK
is the total number of seat kilometres travelled, but only taking
into account seats occupied by paying passengers.
55.
Table 4
in Appendix 1 shows a comparison of RPT flights operated by
Qantas, or its subsidiaries operating under the QantasLink brand (for
domestic,
international and combined), for each calendar month of calendar years 2019,
2020 and 2021 to date (and the percentage
this represents of 2019
levels).
Qantas and Qantaslink Flying Activity at each
Airport
56.
Tables 5 to 14
in Appendix 1 show a comparison of the number of
departures of RPT flights operated by Qantas, or its subsidiaries operating
under
the QantasLink brand, from Sydney, Melbourne, Brisbane, Perth, Adelaide,
Darwin, Alice Springs, Cairns, Townsville and Canberra airports
(domestic,
international and combined) respectively for each calendar month of calendar
years 2019, 2020 and 2021 to date (and the
percentage this represents of 2019
levels).
Flying activity fluctuations across the
Airports
57.
Table 15
in Appendix 1 shows the departure levels of RPT flights
operated by Qantas, or its subsidiaries operating under the QantasLink brand,
at
each of the Airports in September and November of 2020, and January, February,
March and August 2021, as a percentage of the same
month in 2019.
58. The reductions and fluctuations in the level of flying activity depicted in
Tables 3 to 15 were caused by the prevailing COVID-19
situation and associated
travel restrictions affecting the relevant State or Territory at each point in
time and the consequential
changes to the Qantas Group flying
network.
Forecasted flying activity levels
59.
Table 16
in Appendix 1 shows Qantas’ ASK forecasts for domestic
and international RPT flights (combined) operated by Qantas, or its
subsidiaries
operating under the QantasLink brand, along with the actual ASK in that month
(which is shown in brackets), as a percentage
of the ASK in the corresponding
month in calendar year 2019.
60.
Table 17
in Appendix 1 shows Qantas’ ASK forecasts for domestic
RPT flights operated by Qantas, or its subsidiaries operating under
the
QantasLink brand, along with the actual ASK in that month (which is shown in
brackets), as a percentage of the ASK in the corresponding
month in calendar
year 2019.
61.
Table 18
in Appendix 1 shows Qantas’ ASK forecasts for
international RPT flights operated by Qantas, or its subsidiaries operating
under
the QantasLink brand, along with the actual ASK in that month (which is
shown in brackets), as a percentage of the ASK in the corresponding
month in
calendar year 2019.
62.
Table 19
in Appendix 1 shows Qantas’ departure forecasts for
domestic and international RPT flights (combined) operated by Qantas, or
its
subsidiaries operating under the QantasLink brand, along with the actual
departures in that month (which is shown in brackets),
as a percentage of the
departures in the corresponding month in calendar year 2019.
63.
Table 20
in Appendix 1 shows Qantas’ departure forecasts for
domestic RPT flights operated by Qantas, or its subsidiaries operating
under the
QantasLink brand, along with the actual departures in that month (which is shown
in brackets), as a percentage of the departures
in the corresponding month in
calendar year 2019.
64.
Table 21
in Appendix 1 shows Qantas’ departure forecasts for
international RPT flights operated by Qantas, or its subsidiaries operating
under the QantasLink brand, along with the actual departures in that month
(which is shown in brackets), as a percentage of the departures
in the
corresponding month in calendar year 2019.
E Ongoing stand downs of employees in 2021
65. Throughout
2021, there have been significant stand downs of Qantas Group employees due to
the ongoing impacts of the pandemic
on Qantas’ flying activity.
66.
Table 22
below illustrates the percentage of Qantas employees who
were stood down in the period April to August 2021 (across both domestic
and
international).
TABLE 22: Percentage of Qantas employees
stood down April–August 2021
Month in 2021
Total percentage of current cabin crew employees stood
down
Total percentage of current Australian airports (i.e.,
Customer Service staff) employees stood down
Total percentage of current flight crew (pilots)
employees stood down
April
72%
31%
46%
May
69%
26%
42%
June
66%
25%
37%
July
64%
20%
36%
August
72%
35%
45%
F The
Benefits of Outsourcing
Performance of the new Ground Handling Companies
Financial performance
67. Under the Third Party Contracts entered into with the Ground Handling
Companies, Qantas pays for Ground Operations services on
the basis of a fixed
price for a “turn” of an aircraft. As a consequence, leaving aside
the circumstances listed in paragraph
67A.:
(a) Qantas does not incur costs for ground handling services unless there is an
aircraft that needs to be ‘turned’; and
Qantas’
Ground Operations costs vary according to the number of flights it operates.
67A. Under the Third Party Contracts,
Qantas may incur additional fees in addition to the fixed price for a
“turn”
of an aircraft referred to in paragraph 67. These fees may
include:
in
respect of each Third Party Contract with Swissport, charges in the event of a
major disruption to Qantas’ schedule, which
is outside of the direct
control of the Ground Handling Company, including in circumstances of third
party industrial activity, significant
infrastructure failure where the
infrastructure is not under the care or control of the Ground Handling Company,
and extraordinary
weather events. In the event of such a major disruption the
Ground Handling Company is permitted to charge reasonable and substantiated
expenses incurred by the Ground Handling Company to mitigate the delay to any
services it provides under the Third Party Contract
caused by the major
disruption:;
charges
in the event of a flight cancellation or off-scheduled flight if Qantas does not
provide a certain amount of written notice
of the cancellation or change in
flight time to the Ground Handling Company; and
charges
for any additional services provided by the Ground Handling Company, such as
ground support equipment and engineering assistance,
that are otherwise not
included as services under the Third Party Contract.
68. Since the outsourcing of Ground Operations was implemented, Qantas has not
been required to make any capital expenditure in respect
of GSE for the Qantas
Airports business.
Other performance metrics
GSE
69. The Ground Handling Companies have each agreed as part of their contractual
engagement that:
the
provision of GSE is included in the Ground Handling rates (as defined in each
Third Party Contract) and no additional charges
will be added unless Qantas
requests additional GSE;
all
maintenance, inspection certification and replacement of GSE will be provided by
and the responsibility of the Ground Handling
Company;
they
will ensure that all GSE used in provision of the ground handling services is
fit for purpose for Qantas aircraft and maintained
in compliance with all
applicable standards and regulations, and the manufacturers guidelines; and
they
will ensure that all GSE used in the provision of ground handling services to
Qantas complies with specified maximum asset age
requirements.
Other
matters
70. Without speculating as to the reasons for the relevant tenders being
unsuccessful, during the period 2018 to 2020, Qantas’
Australian Airports
business unit participated in 41 tenders for the provision of Ground Operations
to other airlines (with such
services proposed to be provided by the Affected
Employees and/or QGS Affected Employees), but was only successful in relation to
two of those tenders.
G Response to reinstatement
71. Given the reduced flying activity levels during 2021
as set out in Tables 3 to 15 and given the extent of stand downs across the
operational workgroups in 2021 as set out in paragraphs
65
to
65
above, had Qantas not decided to
outsource Ground Operations in November 2020, Qantas and QGS would have stood
down large numbers
of their ramp, baggage and fleet employees in 2021.
72. The
following tables (
Tables 23 and 24
) below set out Qantas’ estimated
number of ground services employees that would have been stood down in 2021 if
Qantas had
not outsourced Ground Operations in November 2020. The estimates set
out in Tables 23 and 24 are estimates only and the Applicant
notes that it is
not presently in a position to verify whether the estimates are reasonably
based. The estimates in the Tables below:
take
into account the reduction of flying activity and the stand downs in other
operational workgroups at the Airports; and
are
based on the headcount data of employees as at the beginning of December 2020,
assuming that voluntary redundancy processes had
been completed and excluding
supervisors and line managers (i.e., prior to the implementation of outsourcing
from late December 2020
onwards).
TABLE
23: Estimated total and proportion of ramp/baggage employees stood down in
2021
Month in
2021
Estimated total and proportion of employees
stood down (n=1170 total ramp/baggage headcount)
January
668 (57% of workforce)
February
652 (56% of workforce)
March
561 (48% of workforce)
April
335 (29% of workforce)
May
326 (28% of workforce)
June
329 (28% of workforce)
July
277 (24% of workforce)
August
277 (24% of workforce)
September
686 (59% of workforce)
TABLE
24: Estimated total and proportion of fleet presentation employees stood down in
2021
Month in
2021
Estimated total and proportion of employees
stood down (n=497 total fleet presentation headcount)
January
308 (62% of total workforce)
February
302 (61% of total workforce)
March
263 (53% of total workforce)
April
167 (34% of total workforce)
May
163 (33% of total workforce)
June
165 (33% of total workforce)
July
143 (29% of total workforce)
August
143 (29% of total workforce)
September
316 (64% of total workforce)
73. Within the ramp/baggage workforce of Affected Employees, approximately 30%
were baggage handlers and 70% ramp employees.
74. Qantas continues to face serious financial and
operational difficulties as a result of the ongoing pandemic, and associated
uncertainty
about the level of flying activity.
Additional
agreed fact
75. As at 31 December 2020 716 Affected Employees were members of the Applicant.
The other Affected Employees were not.
Date: 15 October 2021, amended 13 December 2021, amended 14 December 2021
APPENDIX 1 – NETWORK FLYING ACTIVITY DATA
TABLE 3: Total number of Qantas flights, passengers
carried, “Available Seat Kilometres” (ASKs) and “Revenue
Passenger
Kilometres” (RPKs) in FY2021, FY2020 and FY2019
FY2021
(% against FY2019)
FY2020
(% against FY2019)
FY2019
Domestic
Flights
119,435
165,457
210,609
ASKs
27,010M
(51%)
39,482M
(75%)
52,754M
Passengers carried
14,484,000
(40%)
26,587,000
(74%)
36,142,000
RPKs
17.3B
(40%)
31.4B
(73%)
42.8B
International
Flights
1,244
27,306
35,186
ASKs
1,837M
(2%)
66,664M
(73%)
90,728M
Passengers carried
1,315,000
(9%)
10,853,000
(71%)
15,208,000
RPKs
1.15B
(1%)
56.1B
(72%)
78.1B
Combined domestic and international
Flights
120,679
192,763
245,795
ASKs
28,847M
(20%)
106,146M
(74%)
143,482M
Passengers carried
15,799,000
(31%)
37,431,000
(73%)
51,350,000
RPKS
18.45B
(15%)
87.6B
(72%)
120.9B
TABLE 4: Comparison of number of RPT flights operated by
Qantas or its subsidiaries, 2019–2021
2021
2020
2019
January
Domestic
9,855
(55%)
18,271
(103%)
17,758
International
30
(1%)
3,511
(108%)
3,263
Combined
9,885
(47%)
21,782
(104%)
21,021
February
Domestic
10,402
(59%)
18,624
(105%)
17,680
International
28
(1%)
2,981
(106%)
2,809
Combined
10,430
(51%)
21,605
(105%)
20,489
March
Domestic
14,561
(75%)
19,446
(100%)
19,501
International
69
(2%)
2,719
(90%)
3,025
Combined
14,630
(65%)
22,165
(98%)
22,526
April
Domestic
16,255
(86%)
5,176
(27%)
18,850
International
336
(11%)
524
(17%)
3,119
Combined
16,591
(76%)
5,700
(26%)
21,969
May
Domestic
17,637
(88%)
1,178
(6%)
20,146
International
701
(23%)
35
(1%)
3,100
Combined
18,338
(79%)
1,213
(5%)
23,246
June
Domestic
16,904
(89%)
2,207
(12%)
18,997
International
665
(22%)
5
(0%)
3,041
Combined
17,569
(80%)
2,212
(10%)
22,038
July
Domestic
12,317
(60%)
4,221
(21%)
20,419
International
762
(23%)
0
(0%)
3,269
Combined
13,079
(55%)
4,221
(18%)
23,688
August
Domestic
7,062
(35%)
4,416
(22%)
20,132
International
88
(3%)
0
(0%)
3,187
Combined
7,150
(31%)
4,416
(19%)
23,319
September
Domestic
4,713
(24%)
19,561
International
0
(0%)
3,091
Combined
4,713
(21%)
22,652
October
Domestic
5,931
(29%)
20,420
International
19
(1%)
3,215
Combined
5,950
(25%)
23,635
November
Domestic
7,724
(40%)
19,434
International
31
(1%)
3,098
Combined
7,755
(34%)
22,532
December
Domestic
12,121
(64%)
18,799
International
31
(1%)
3,413
Combined
12,152
(55%)
22,212
TABLE 5: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Sydney Airport,
2019–2021
2021
2020
2019
January
Domestic
998
(29%)
3,645
(106%)
3,444
International
9
(1%)
917
(107%)
859
Combined
1,007
(23%)
4,562
(106%)
4,303
February
Domestic
1,695
(46%)
3,915
(107%)
3,665
International
8
(1%)
747
(103%)
724
Combined
1,703
(39%)
4,662
(106%)
4,389
March
Domestic
2,936
(72%)
4,032
(99%)
4,065
International
20
(3%)
688
(87%)
790
Combined
2,956
(61%)
4,720
(97%)
4,855
April
Domestic
3,090
(81%)
905
(24%)
3,821
International
78
(10%)
123
(15%)
796
Combined
3,168
(69%)
1,028
(22%)
4,617
May
Domestic
3,462
(83%)
160
(4%)
4,162
International
156
(19%)
0
(0%)
806
Combined
3,618
(73%)
160
(3%)
4,968
June
Domestic
3,202
(82%)
374
(10%)
3,883
International
158
(20%)
0
(0%)
792
Combined
3,360
(72%)
374
(8%)
4,675
July
Domestic
1,402
(33%)
665
(16%)
4,201
International
134
(16%)
0
(0%)
840
Combined
1,536
(30%)
665
(13%)
5,041
August
Domestic
353
(8%)
428
(10%)
4,183
International
14
(2%)
0
(0%)
814
Combined
367
(7%)
428
(9%)
4,997
September
Domestic
349
(9%)
4,087
International
0
(0%)
787
Combined
349
(7%)
4,874
October
Domestic
624
(15%)
4,260
International
9
(1%)
814
Combined
633
(12%)
5,074
November
Domestic
1,114
(27%)
4,055
International
10
(1%)
784
Combined
1,124
(23%)
4,839
December
Domestic
2,186
(57%)
3,821
International
8
(1%)
883
Combined
2,194
(47%)
4,704
TABLE 6: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Melbourne Airport,
2019–2021
2021
2020
2019
January
Domestic
1,080
(41%)
2,615
(99%)
2,637
International
0
(0%)
409
(103%)
398
Combined
1,080
(36%)
3,024
(100%)
3,035
February
Domestic
1,116
(42%)
2,744
(104%)
2,647
International
0
(0%)
368
(104%)
355
Combined
1,116
(37%)
3,112
(104%)
3,002
March
Domestic
1,590
(54%)
2,836
(97%)
2,920
International
0
(0%)
328
(89%)
368
Combined
1,590
(48%)
3,164
(96%)
3,288
April
Domestic
2,254
(83%)
613
(23%)
2,716
International
40
(11%)
73
(19%)
380
Combined
2,294
(74%)
686
(22%)
3,096
May
Domestic
2,541
(86%)
115
(4%)
2,950
International
96
(26%)
7
(2%)
371
Combined
2,637
(79%)
122
(4%)
3,321
June
Domestic
2,069
(74%)
268
(10%)
2,782
International
76
(21%)
1
(0%)
366
Combined
2,145
(68%)
269
(9%)
3,148
July
Domestic
1,383
(46%)
240
(8%)
2,986
International
114
(29%)
0
(0%)
392
Combined
1,497
(44%)
240
(7%)
3,378
August
Domestic
447
(15%)
92
(3%)
2,970
International
4
(1%)
0
(0%)
388
Combined
451
(13%)
92
(3%)
3,358
September
Domestic
76
(3%)
2,883
International
0
(0%)
376
Combined
76
(2%)
3,259
October
Domestic
74
(2%)
2,992
International
0
(0%)
394
Combined
74
(2%)
3,386
November
Domestic
233
(8%)
2,849
International
0
(0%)
385
Combined
233
(7%)
3,234
December
Domestic
1,383
(51%)
2,715
International
0
(0%)
414
Combined
1,383
(44%)
3,129
TABLE 7: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Brisbane Airport,
2019–2021
2021
2020
2019
January
Domestic
1,760
(64%)
2,791
(102%)
2,740
International
0
(0%)
285
(106%)
270
Combined
1,760
(58%)
3,076
(102%)
3,010
February
Domestic
1,692
(63%)
2,835
(105%)
2,705
International
0
(0%)
258
(107%)
242
Combined
1,692
(57%)
3,093
(105%)
2,947
March
Domestic
2,285
(76%)
3,001
(100%)
2,993
International
7
(3%)
227
(87%)
261
Combined
2,292
(70%)
3,228
(99%)
3,254
April
Domestic
2,283
(78%)
861
(29%)
2,937
International
37
(14%)
56
(21%)
265
Combined
2,320
(72%)
917
(29%)
3,202
May
Domestic
2,528
(81%)
164
(5%)
3,108
International
76
(31%)
3
(1%)
249
Combined
2,604
(78%)
167
(5%)
3,357
June
Domestic
2,584
(88%)
368
(12%)
2,952
International
84
(35%)
0
(0%)
243
Combined
2,668
(84%)
368
(12%)
3,195
July
Domestic
1,980
(62%)
827
(26%)
3,170
International
105
(38%)
0
(0%)
278
Combined
2,085
(60%)
827
(24%)
3,448
August
Domestic
1,225
(40%)
967
(31%)
3,084
International
15
(6%)
0
(0%)
267
Combined
1,240
(37%)
967
(29%)
3,351
September
Domestic
974
(33%)
2,989
International
0
(0%)
264
Combined
974
(30%)
3,253
October
Domestic
1,074
(34%)
3,116
International
0
(0%)
273
Combined
1,074
(32%)
3,389
November
Domestic
1,283
(43%)
2,998
International
0
(0%)
260
Combined
1,283
(39%)
3,258
December
Domestic
2,059
(70%)
2,930
International
0
(0%)
272
Combined
2,059
(64%)
3,202
TABLE 8: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Perth Airport,
2019–2021
2021
2020
2019
January
Domestic
1,040
(66%)
1,612
(102%)
1,582
International
1
(1%)
83
(114%)
73
Combined
1,041
(63%)
1,695
(102%)
1,655
February
Domestic
919
(62%)
1,549
(105%)
1,482
International
0
(0%)
60
(107%)
56
Combined
919
(60%)
1,609
(105%)
1,538
March
Domestic
1,270
(78%)
1,660
(102%)
1,628
International
0
(0%)
57
(92%)
62
Combined
1,270
(75%)
1,717
(102%)
1,690
April
Domestic
1,286
(80%)
538
(33%)
1,611
International
0
(0%)
12
(20%)
60
Combined
1,286
(77%)
550
(33%)
1,671
May
Domestic
1,369
(81%)
138
(8%)
1,689
International
0
(0%)
7
(11%)
62
Combined
1,369
(78%)
145
(8%)
1,751
June
Domestic
1,350
(86%)
205
(13%)
1,573
International
0
(0%)
1
(2%)
60
Combined
1,350
(83%)
206
(13%)
1,633
July
Domestic
1,164
(68%)
464
(27%)
1,706
International
0
(0%)
0
(0%)
62
Combined
1,164
(66%)
464
(26%)
1,768
August
Domestic
1,034
(62%)
520
(31%)
1,672
International
0
(0%)
0
(0%)
62
Combined
1,034
(60%)
520
(30%)
1,734
September
Domestic
626
(38%)
1,627
International
0
(0%)
60
Combined
626
(37%)
1,687
October
Domestic
770
(45%)
1,719
International
0
(0%)
62
Combined
770
(43%)
1,781
November
Domestic
926
(58%)
1,593
International
2
(3%)
60
Combined
928
(56%)
1,653
December
Domestic
1,143
(72%)
1,598
International
4
(5%)
77
Combined
1,147
(68%)
1,675
TABLE 9: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Adelaide Airport,
2019–2021
2021
2020
2019
January
Domestic
508
(51%)
1,000
(101%)
988
International
0
(0%)
0
(0%)
0
Combined
508
(51%)
1,000
(101%)
988
February
Domestic
482
(50%)
1,004
(104%)
963
International
0
(0%)
0
(0%)
0
Combined
482
(50%)
1,004
(104%)
963
March
Domestic
708
(66%)
1,052
(98%)
1,073
International
0
(0%)
0
(0%)
0
Combined
708
(66%)
1,052
(98%)
1,073
April
Domestic
850
(85%)
229
(23%)
998
International
0
(0%)
0
(0%)
0
Combined
850
(85%)
229
(23%)
998
May
Domestic
929
(85%)
27
(2%)
1,092
International
0
(0%)
0
(0%)
0
Combined
929
(85%)
27
(2%)
1,092
June
Domestic
907
(89%)
42
(4%)
1,021
International
0
(0%)
0
(0%)
0
Combined
907
(89%)
42
(4%)
1,021
July
Domestic
691
(65%)
131
(12%)
1,064
International
0
(0%)
0
(0%)
0
Combined
691
(65%)
131
(12%)
1,064
August
Domestic
252
(24%)
196
(19%)
1,055
International
0
(0%)
0
(0%)
0
Combined
252
(24%)
196
(19%)
1,055
September
Domestic
168
(16%)
1,036
International
0
(0%)
0
Combined
168
(16%)
1,036
October
Domestic
299
(28%)
1,081
International
0
(0%)
0
Combined
299
(28%)
1,081
November
Domestic
391
(38%)
1,033
International
0
(0%)
0
Combined
391
(38%)
1,033
December
Domestic
494
(49%)
1,014
International
0
(0%)
0
Combined
494
(49%)
1,014
TABLE 10: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Darwin Airport,
2019–2021
2021
2020
2019
January
Domestic
136
(70%)
195
(101%)
193
International
2
(0%)
0
(0%)
0
Combined
138
(72%)
195
(101%)
193
February
Domestic
115
(61%)
196
(104%)
188
International
4
(0%)
0
(0%)
0
Combined
119
(63%)
196
(104%)
188
March
Domestic
149
(65%)
225
(98%)
229
International
6
(0%)
0
(0%)
0
Combined
155
(68%)
225
(98%)
229
April
Domestic
200
(90%)
64
(29%)
221
International
5
(0%)
0
(0%)
0
Combined
205
(93%)
64
(29%)
221
May
Domestic
269
(116%)
17
(7%)
232
International
6
(0%)
0
(0%)
0
Combined
275
(119%)
17
(7%)
232
June
Domestic
302
(118%)
29
(11%)
256
International
5
(0%)
0
(0%)
0
Combined
307
(120%)
29
(11%)
256
July
Domestic
289
(104%)
54
(19%)
277
International
7
(0%)
0
(0%)
0
Combined
296
(107%)
54
(19%)
277
August
Domestic
251
(96%)
81
(31%)
262
International
7
(0%)
0
(0%)
0
Combined
258
(98%)
81
(31%)
262
September
Domestic
64
(27%)
240
International
0
(0%)
0
Combined
64
(27%)
240
October
Domestic
89
(36%)
244
International
0
(0%)
0
Combined
89
(36%)
244
November
Domestic
122
(56%)
219
International
1
(0%)
0
Combined
123
(56%)
219
December
Domestic
123
(57%)
215
International
0
(0%)
0
Combined
123
(57%)
215
TABLE 11: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Alice Springs Airport,
2019–2021
2021
2020
2019
January
Domestic
109
(51%)
168
(78%)
215
International
0
(0%)
0
(0%)
0
Combined
109
(51%)
168
(78%)
215
February
Domestic
96
(47%)
169
(82%)
206
International
0
(0%)
0
(0%)
0
Combined
96
(47%)
169
(82%)
206
March
Domestic
106
(45%)
181
(77%)
234
International
0
(0%)
0
(0%)
0
Combined
106
(45%)
181
(77%)
234
April
Domestic
134
(72%)
61
(33%)
187
International
0
(0%)
0
(0%)
0
Combined
134
(72%)
61
(33%)
187
May
Domestic
158
(84%)
17
(9%)
189
International
0
(0%)
0
(0%)
0
Combined
158
(84%)
17
(9%)
189
June
Domestic
178
(94%)
25
(13%)
189
International
0
(0%)
0
(0%)
0
Combined
178
(94%)
25
(13%)
189
July
Domestic
165
(81%)
58
(29%)
203
International
0
(0%)
0
(0%)
0
Combined
165
(81%)
58
(29%)
203
August
Domestic
138
(68%)
91
(45%)
204
International
0
(0%)
0
(0%)
0
Combined
138
(68%)
91
(45%)
204
September
Domestic
89
(45%)
198
International
0
(0%)
0
Combined
89
(45%)
198
October
Domestic
94
(47%)
202
International
0
(0%)
0
Combined
94
(47%)
202
November
Domestic
98
(54%)
182
International
0
(0%)
0
Combined
98
(54%)
182
December
Domestic
103
(60%)
173
International
0
(0%)
0
Combined
103
(60%)
173
TABLE 12: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Cairns Airport,
2019–2021
2021
2020
2019
January
Domestic
392
(66%)
581
(98%)
594
International
0
(0%)
30
(0%)
0
Combined
392
(66%)
611
(103%)
594
February
Domestic
311
(58%)
525
(97%)
539
International
0
(0%)
29
(0%)
0
Combined
311
(58%)
554
(103%)
539
March
Domestic
396
(68%)
542
(92%)
586
International
0
(0%)
28
(2800%)
1
Combined
396
(67%)
570
(97%)
587
April
Domestic
488
(84%)
144
(25%)
578
International
0
(0%)
0
(0%)
29
Combined
488
(80%)
144
(24%)
607
May
Domestic
474
(80%)
43
(7%)
592
International
0
(0%)
0
(0%)
31
Combined
474
(76%)
43
(7%)
623
June
Domestic
522
(89%)
69
(12%)
587
International
4
(13%)
0
(0%)
30
Combined
526
(85%)
69
(11%)
617
July
Domestic
491
(78%)
204
(33%)
627
International
2
(6%)
0
(0%)
31
Combined
493
(75%)
204
(31%)
658
August
Domestic
372
(62%)
254
(43%)
597
International
0
(0%)
0
(0%)
31
Combined
372
(59%)
254
(40%)
628
September
Domestic
354
(63%)
566
International
0
(0%)
30
Combined
354
(59%)
596
October
Domestic
348
(60%)
584
International
0
(0%)
31
Combined
348
(57%)
615
November
Domestic
333
(60%)
557
International
0
(0%)
30
Combined
333
(57%)
587
December
Domestic
395
(69%)
572
International
0
(0%)
30
Combined
395
(66%)
602
TABLE 13: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Townsville Airport,
2019–2021
2021
2020
2019
January
Domestic
298
(76%)
401
(102%)
392
International
0
(0%)
0
(0%)
0
Combined
298
(76%)
401
(102%)
392
February
Domestic
272
(76%)
379
(105%)
360
International
0
(0%)
0
(0%)
0
Combined
272
(76%)
379
(105%)
360
March
Domestic
320
(81%)
409
(104%)
393
International
0
(0%)
0
(0%)
0
Combined
320
(81%)
409
(104%)
393
April
Domestic
321
(80%)
128
(32%)
399
International
0
(0%)
0
(0%)
0
Combined
321
(80%)
128
(32%)
399
May
Domestic
326
(77%)
52
(12%)
425
International
0
(0%)
0
(0%)
0
Combined
326
(77%)
52
(12%)
425
June
Domestic
332
(83%)
74
(19%)
398
International
0
(0%)
0
(0%)
0
Combined
332
(83%)
74
(19%)
398
July
Domestic
337
(78%)
74
(33%)
433
International
0
(0%)
0
(0%)
0
Combined
337
(78%)
74
(33%)
433
August
Domestic
307
(75%)
161
(40%)
407
International
0
(0%)
0
(0%)
0
Combined
307
(75%)
161
(40%)
407
September
Domestic
213
(54%)
397
International
0
(0%)
0
Combined
213
(54%)
397
October
Domestic
237
(57%)
418
International
0
(0%)
0
Combined
237
(57%)
418
November
Domestic
269
(66%)
407
International
0
(0%)
0
Combined
269
(66%)
407
December
Domestic
301
(75%)
402
International
0
(0%)
0
Combined
301
(75%)
402
TABLE 14: Comparison of number of departures of RPT
flights operated by Qantas or its subsidiaries from Canberra Airport,
2019–2021
2021
2020
2019
January
Domestic
439
(58%)
756
(101%)
751
International
0
(0%)
0
(0%)
0
Combined
439
(58%)
756
(101%)
751
February
Domestic
603
(65%)
953
(103%)
925
International
0
(0%)
0
(0%)
0
Combined
603
(65%)
953
(103%)
925
March
Domestic
612
(61%)
997
(99%)
1,003
International
0
(0%)
0
(0%)
0
Combined
612
(61%)
997
(99%)
1,003
April
Domestic
687
(72%)
249
(26%)
950
International
0
(0%)
0
(0%)
0
Combined
687
(72%)
249
(26%)
950
May
Domestic
882
(87%)
67
(7%)
1,019
International
0
(0%)
0
(0%)
0
Combined
882
(87%)
67
(7%)
1,019
June
Domestic
821
(86%)
126
(13%)
950
International
0
(0%)
0
(0%)
0
Combined
821
(86%)
126
(13%)
950
July
Domestic
504
(49%)
160
(15%)
1,035
International
0
(0%)
0
(0%)
0
Combined
504
(49%)
160
(15%)
1,035
August
Domestic
203
(20%)
139
(14%)
1,028
International
0
(0%)
0
(0%)
0
Combined
203
(20%)
139
(14%)
1,028
September
Domestic
107
(11%)
998
International
0
(0%)
0
Combined
107
(11%)
998
October
Domestic
215
(21%)
1,037
International
0
(0%)
0
Combined
215
(21%)
1,037
November
Domestic
316
(32%)
988
International
0
(0%)
0
Combined
316
(32%)
988
December
Domestic
469
(53%)
878
International
0
(0%)
0
Combined
469
(53%)
878
TABLE 15: Departure levels of RPT flights operated by
Qantas or its subsidiaries from each Airport, September 2020–August
2021
September
November
January
February
March
August
Sydney
7%
23%
23%
39%
61%
7%
Melbourne
2%
7%
36%
37%
48%
13%
Brisbane
30%
39%
58%
57%
70%
37%
Perth
37%
56%
63%
60%
75%
60%
Adelaide
16%
38%
51%
50%
66%
24%
Darwin
27%
56%
72%
63%
68%
98%
Alice Springs
45%
54%
51%
47%
45%
68%
Cairns
59%
57%
66%
58%
67%
59%
Townsville
54%
66%
76%
76%
81%
75%
Canberra
11%
32%
58%
65%
61%
20%
TABLE 16: ASK forecasts and actual ASK, as a percentage
of the ASK in the corresponding month in 2019, for domestic and international
Qantas RPT flights, September 2020–August 2021
Forecast period
September 2020
November 2020
January 2021
February 2021
March 2021
August 2021
Date of forecast
September 2020
12% (7%)
12%
15%
22%
24%
64%
November 2020
18% (13%)
27%
28%
30%
55%
January 2021
24% (17%)
23%
23%
49%
February 2021
23% (17%)
28%
39%
March 2021
30% (25%)
44%
August 2021
13% (13%)
TABLE 17: ASK forecasts and actual ASK, as a percentage
of the ASK in the corresponding month in 2019, for domestic Qantas RPT flights,
September 2020–August 2021
Forecast period
September 2020
November 2020
January 2021
February 2021
March 2021
August 2021
Date of forecast
September 2020
28% (21%)
34%
49%
65%
69%
102%
November 2020
41%(35%)
77%
72%
75%
103%
January 2021
64%
(54%)
61%
67%
101%
February 2021
56%
(50%)
68%
99%
March 2021
74%
(71%)
98%
August 2021
35%
(35%)
TABLE 18: ASK forecasts and actual ASK, as a percentage
of the ASK in the corresponding month in 2019, for international Qantas RPT
flights, September 2020–August 2021
Forecast period
Date of forecast
September 2020
November 2020
January 2021
February 2021
March 2021
August 2021
September 2020
4% (0%)
0%
0%
0%
0%
43%
November 2020
5% (1%)
4%
5%
7%
29%
January 2021
6% (1%)
4%
0%
20%
February 2021
7% (1%)
7%
7%
March 2021
7% (1%)
15%
August 2021
1% (1%)
TABLE 19: Departure forecasts and actual forecasts, as a
percentage of the departures in the corresponding month in 2019, for domestic
and international Qantas RPT flights, September 2020–August
2021
Forecast period
September 2020
November 2020
January 2021
February 2021
March 2021
August 2021
Date of forecast
September 2020
29% (21%)
39%
53%
63%
68%
100%
November 2020
41% (34%)
69%
70%
76%
100%
January 2021
57% (47%)
62%
68%
96%
February 2021
58% (51%)
65%
87%
March 2021
70% (65%)
88%
August 2021
31% (31%)
TABLE 20: Departure forecasts and actual forecasts, as a
percentage of the departures in the corresponding month in 2019, for domestic
Qantas RPT flights, September 2020–August 2021
Forecast period
Date of forecast
September 2020
November 2020
January 2021
February 2021
March 2021
August 2021
September 2020
33% (24%)
46%
63%
73%
78%
105%
November 2020
46% (40%)
80%
79%
83%
107%
January 2021
65% (55%)
72%
78%
105%
February 2021
65% (59%)
74%
97%
March 2021
79% (75%)
96%
August 2021
35% (35%)
TABLE 21: Departure forecasts and actual forecasts, as a
percentage of the departures in the corresponding month in 2019, for
international
Qantas RPT flights, September 2020–August 2021
Forecast period
September 2020
November 2020
January 2021
February 2021
March 2021
August 2021
Date of forecast
September 2020
5% (0%)
0%
0%
0%
0%
68%
November 2020
7% (1%)
6%
13%
29%
56%
January 2021
9% (1%)
5%
1%
43%
February 2021
9% (1%)
8%
25%
March 2021
10% (2%)
35%
August 2021
3% (3%)
[1]
Clause 2 of the various
contracts.
[2]
Clause 23 or 24 of
the various contracts.
[3]
Source: Qantas Airways Limited
preliminary final report for financial year ended 30 June 2021.