Page:Qantas v Transport Workers Union of Australia.pdf/7

Kiefel CJ

Gageler J

Gleeson J

Jagot J 27 December 2018 and had a nominal expiry date of 31 December 2020. The agreement covering the affected QGS employees commenced operation on 17 February 2017 and had a nominal expiry date of 1 September 2019.

From January 2020, the COVID-19 pandemic severely affected Qantas' operations and revenues. Qantas experienced an almost total reduction in travelling passengers and thus passenger flights on its international networks, and a very significant reduction on its domestic networks. From February 2020, Australian governments implemented progressive restrictions first on international travel, and then on domestic travel. By May 2020, Qantas' management identified the outsourcing of Qantas' remaining ground handling operations as one option to keep the airline financially viable.

In the period from 29 June to 11 August 2020, Qantas took steps in contemplation of a decision about outsourcing being made by the end of 2020. Those steps included a request for information process with potential third-party suppliers of ground handling services, including in relation to the potential industrial benefits of outsourcing when compared with existing arrangements.

On 20 August 2020, the Qantas Group released its results for the 2020 financial year. Those results included a 91 per cent profit reduction on the previous financial year and a $2.7 billion statutory before-tax loss, as well as significant anticipated underlying losses for the 2021 financial year. As the primary judge noted, Qantas was facing a "business calamity". At the hearing in this Court, senior counsel for Qantas described the business as "bleeding cash".

On 24 or 25 August 2020, Mr Andrew David, the Chief Executive Officer of Qantas Domestic and International, commenced a review of ground handling operations. On 25 August, Qantas notified the affected employees of the review, including details of an in-house bid ("IHB") process and an external request for proposal ("RFP") process. The IHB process, which provided Qantas employees with an opportunity to bid competitively to continue to provide the ground handling services, was required by the relevant enterprise agreement. On the same day, Qantas made a public announcement about the review. The primary judge found that, by this time, Mr David and other senior officers of Qantas were of the view that a final outsourcing decision would be made, subject to the completion of the IHB and RFP processes.