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Qantas (ASX:QAN) wins court case against union

ASX 200
ASX:QAN      MCAP $9.956B
07 October 2020 10:00 (AEST)
Qantas Airways (ASX:QAN)- CEO, Alan Joyce

Sourced: The New Daily

Qantas Airways (QAN) has emerged triumphant in a union court case after a significant work stoppage earlier this year.

The Australian Licenced Aircraft Engineers Association (ALAEA) alleged Qantas could have saved more than 400 maintenance worker positions during a work stoppage in late March.

The work stoppages lasted until April 22, during a period of COVID-19 measures impacting the industry. Workers that were stood down included those under Qantas’ Jetstar brand.

ALAEA took Qantas to Federal Court, saying the workers’ agreement should have protected the hundreds of staff stood down as the aviation industry lost customers.

Qantas stated that it had carried out every cost saving measure possible before sending hundreds of Australian workers home as its final measure.

On Tuesday, Justice Geoffrey Flick ruled in favour of Qantas, referencing the unpredicted Government protocols that slowed the aviation industry.

“Given the substantial downturn in passenger flights, there was no other option reasonably open for Qantas or Jetstar to pursue,” Justice Flick said.

“It was an economic reality forced upon the airlines by reason of the global pandemic and the conduct of the Commonwealth, state and territory governments in restricting travel and movements”.

Qantas pulled no punches when it responded to ALAEA’s case against the airline.

“The union’s argument that Qantas should be flying empty planes in the middle of a pandemic was ridiculous,” a Qantas statement read.

“It would have put the future of the company and thousands of jobs at risk.”

Qantas also argued during the legal battle that standing down the hundreds of employees was in accordance with existing agreement clauses.

Despite ruling in Qantas’ favour, Justice Flick showed empathy towards the union members, saying the stand down was “hopefully unique and never to be repeated”.

However, Justice Flick also showed disapproval towards ALAEA’s attempt to hold Qantas accountable.

“It is, with respect, disingenuous to suggest that the action taken by the airlines was action within their ‘own volition’,” he said.

Shares in Qantas Airways are unchanged in early morning trade, priced at $4.37 each at 10:25 am AEDT.

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