Qantas blow in compo hearing

Qantas’ case in Federal Court hearings to determine compensation for unlawfully outsourced workers has been dealt a blow after the judge appeared to dismiss evidence of a key witness.

Former chief operating officer Colin Hughes argued he would still have recommended the outsourcing of workers in 2021, if it hadn’t occurred in 2020. The argument is critical to Qantas’ case, which seeks to minimise its liability for compensation to a 12-month period, rather than the much broader time frame sought by the Transport Workers Union.

Evidence presented by TWU barrister Mark Gibian SC showed Qantas was expecting flying to increase considerably in 2021, making a mass outsourcing exercise less likely.

A statement by then chief executive Alan Joyce made on March 11, 2021, announcing further federal government assistance, talked about domestic flying returning to 80 per cent by mid-year.

“You would not have (recommended outsourcing) in February or March of 2021 because there was growing demand,” Mr Gibian put to Mr Hughes.

“I reject that entirely,” said Mr Hughes. “The business had continued to lose money, there was spare capacity in the industry and there was an opportunity to save a significant sum of money.”

Mr Gibian suggested his evidence “was self-serving to help Qantas’ case” and did not reflect the facts. Justice Michael Lee then weighed in, telling the court he would “work on what Mr Joyce said to the market”.

“I’m going to work on the basis that what Mr Joyce was saying at the time, reflects the true position of Qantas at the time,” said Justice Lee.