Qantas Airways (ASX:QAN)- CEO, Alan Joyce
CEO, Alan Joyce
Sourced: The New Daily
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  • Qantas Airways (QAN) has been found innocent of any wrong-doing after standing down hundreds of maintenance workers earlier this year
  • Due to the COVID-19 pandemic, Qantas stood down roughly 450 aircraft maintenance workers between March and April
  • The Australian Licenced Aircraft Engineers Association took Qantas to Federal Court, claiming the airline could have saved the positions
  • Justice Geoffrey Flick ruled in Qantas’ favour on Tuesday, saying the loss of available work was out of the airline’s control
  • Justice Flick said the Australian Government’s imposed restrictions on borders and travel put Qantas in the position without choice
  • Shares in Qantas Airways are unchanged in early morning trade, priced at $4.37 each

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.

QAN by the numbers
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