Qantas to outsource ground handling across Australia

[kelvedon]

No consequences for the former CEO nor the former chairman of Qantas.

Nor for the current CEO.

Referring to the arms length at which Joyce was kept from owning the decision, Justice Lee commented “with a sense of disquiet and uncertainty as to precisely what went on within the upper echelons of Qantas leading up to the outsourcing decision”.

 

[DejaBrew]

Qantas statement -:

Today's judgement holds us accountable for our actions that caused real harm to our employees.

Qantas Group chief executive Officer Vanessa Hudson said: "We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.

"The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families.

"The impact was felt not only by those who lost their jobs, but by our entire workforce.

"Over the past 18 months we've worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost."

The $90 million penalty will be paid in accordance with the orders of the Court.

Qantas has also paid $120 million into the compensation fund for all affected former employees, which is being administered by Maurice Blackburn.

 

[RooFlyer]

Am I the only one thinking this is actually not a large fine and really QF would have probably paid it if given the choice between retaining ground handling inhouse or outsourcing?

Justice Lee described it as “the cost of doing business”.

He wasn’t being complimentary on the cynicism of the company.

Cost isn't always in cash. As usual, Lee's well crafted words do furthet damage to Qantas and its reputation than money alone perhaps might.

 

[justinbrett]

Justice Lee described it as “the cost of doing business”.

He wasn’t being complimentary on the cynicism of the company.

Cost isn't always in cash. As usual, Lee's well crafted words do furthet damage to Qantas and its reputation than money alone perhaps might.

Meh. This is such an old story, I predict after the 24 hour news cycle, nobody will be talking about it.

 

[moa999]

Meh. This is such an old story, I predict after the 24 hour news cycle, nobody will be talking about it.

Agreed. The work has been outsourced for over 4yrs now.

It really just puts a ruler under the Goyder/ Joyce era, and the somewhat wild world that was the Covid period, where Qantas's biggest competitor also went broke costing lots of jobs as well.

 

[SYD]

Agreed. The work has been outsourced for over 4yrs now.

It really just puts a ruler under the Goyder/ Joyce era, and the somewhat wild world that was the Covid period, where Qantas's biggest competitor also went broke costing lots of jobs as well.

I suspect our bags would have still arrived soaking wet today regardless…

Sitting on board and seeing our luggage sitting out in the rain while they put a wheelchair in the hold, then took it out. Tossed a few bags in, and took one out. Moved the trailers further away and then finally our bags were some of the last to get loaded - probably “priority bags” to come out first - but wettest….

 

[Melburnian1]

Meh. This is such an old story, I predict after the 24 hour news cycle, nobody will be talking about it.

I don't agree, because Mr Justice Lee still has to determine to whom the $40 million will be paid.

It ideally should go into the pockets of the employees.

This decision sets a precedent and will be very closely studied by solicitors and barristers who act for large companies.

 

[TheRealTMA]

What a joke. Directors and senior management paid no penalty, still kept multi million bonus. Qantas as a company act made a profit On the illegal behaviour. Should have been penalties or banning from directorships for some years.

The Australian system of management responsibility is completely broken. They know it will never be found against them, just the workers and maybe shareholders who get stuffed.

 

[bam71]

I don't agree, because Mr Justice Lee still has to determine to whom the $40 million will be paid.

It ideally should go into the pockets of the employees.

This decision sets a precedent and will be very closely studied by solicitors and barristers who act for large companies.

This….!!

 

[kevrosmith]

Perhaps one Justice won’t be getting their Chairman’s Lounge membership renewed next year now…

 

[justinbrett]

I don't agree, because Mr Justice Lee still has to determine to whom the $40 million will be paid.

It ideally should go into the pockets of the employees.

This decision sets a precedent and will be very closely studied by solicitors and barristers who act for large companies.

As even Joe Aston said today, QF has already saved ~600 million from the decision to outsource, so are significantly ahead even with the 120mil + 90mil payments. Not to mention the decades of future savings.

I dare say they're quietly taking this as a win.

As for the news cycle, it's already dropped off the main section of news .com .au

 

[anat0l]

Should have been penalties or banning from directorships for some years.

This is the thing - what kinds of penalties, and against who?

The penalty was doled out to the  company, not Mr Alan Joyce or anyone specifically.

Banning from directorships would be worthwhile if only it may protect the next company, not really imposing anything on the perpetrator. But then again, if you hired a known corporate criminal to director of your company and the shareholders endorse this, who really is the idiot?

The Australian system of management responsibility is completely broken. They know it will never be found against them, just the workers and maybe shareholders who get stuffed.

Story of capitalist corporations all over the world, though much more pronounced in the Western world.

Qantas additionally is almost at the stage of being too large to fail. That comes with so much inertia against even disturbances like this which would be the death of many other companies many times over.

 

[SYD]

As even Joe Aston said today, QF has already saved ~600 million from the decision to outsource, so are already far ahead even with the 120mil + 90mil payments. Not to mention the decades of future savings.

I dare say they're quietly taking this as a win.

I suspect they’ll still challenge it. Especially since the bulk is going to the TWU (and not those directly affected) - which is problematic.

 

[RooFlyer]

Meh. This is such an old story, I predict after the 24 hour news cycle, nobody will be talking about it.

Old story? because Qantas kept appealing (and losing), and appealing before they read the judgment (and losing) and ... did they appeal this one?

You can hope everyone looks the other way, but Qantas will forever have this judgement against the corporate (and Hudson's) name.

The Oz online

“If any further evidence was needed as to the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune.”

He [Justice Lee] also called out Hudson, who was present during the original unlawful decision-making as an executive committee member. She conspicuously didn’t testify about what went wrong or how things would change. Justice Lee observed this was likely a “deliberate” forensic decision to avoid scrutiny.

Through the penalty hearings, Qantas only provided evidence of contrition after it was prompted to by the court, again suggesting it wasn’t important.

Justice Lee also grappled with whether Qantas’s expressions of regret constitute “mere pieties” or “theatre staged for the audience of both the court and public opinion, hoping the curtain will fall on this saga with the financial damage minimised”, rather than genuine contrition.

My bolding. That sounds like some arguments here ....

And it hasn't stopped for Qantas until the new Chairman has his say. This is now a test of his oversight of the Board and CEO. He will have to consider this (ABC on-line)

"I infer the decision of Qantas not to call Ms Hudson was an informed and deliberate one.

"Of course, a consequence of this forensic decision was the absence of questioning by senior counsel for the Union as to the extent of her knowledge and involvement (as one of the members of the GMC [Group Management Committee]) leading up to the outsourcing decision and other matters said to be relevant as to how Qantas has changed."

I dare say they're quietly taking this as a win.

I dare say you are right on the money - which speaks volumes of the company culture of 'lets break the law to make more money' and underlines Justice Lee's comments.

 

[justinbrett]

Old story? because Qantas kept appealing (and losing), and appealing before they read the judgment (and losing) and ... did they appeal this one?

You can hope everyone looks the other way, but Qantas will forever have this judgement against the corporate (and Hudson's) name.

The Oz online

It’s already happened. The story has largely disappeared, or is at least buried, on most news sources.