Qantas Airways Limited & Anor v Transport Workers Union of Australia

The High Court of Australia considered a dispute between Qantas Airways Limited and its subsidiary, Qantas Ground Services Pty Ltd (collectively, Qantas), and the Transport Workers Union of Australia (TWU). The core of the dispute concerned the lawfulness of Qantas's decision to outsource its ground handling services, which resulted in the termination of employment for a significant number of its employees. The TWU challenged this decision, alleging it was a sham arrangement designed to prevent employees from exercising their right to engage in industrial action.

The High Court was required to determine whether Qantas's conduct in outsourcing its ground handling services constituted a contravention of section 348(1)(a) of the *Fair Work Act 2009* (Cth). This provision prohibits an employer from taking adverse action against an employee or prospective employee for the purpose of preventing the exercise of a workplace right. The central question was whether Qantas’s genuine commercial reasons for outsourcing were overshadowed by an impermissible purpose of preventing employees from exercising their right to engage in industrial action.

The Court analysed the concept of "purpose" under the *Fair Work Act*, noting that it requires an examination of the employer's subjective intention. While acknowledging that genuine commercial considerations can be a legitimate purpose for business decisions, the Court emphasised that such purposes cannot be used as a pretext to avoid obligations under the Act. The High Court ultimately found that Qantas had not established that its sole or dominant purpose in outsourcing was for genuine commercial reasons, and that the purpose of preventing the exercise of workplace rights was a substantial and operative reason for its decision.

The High Court allowed the appeal, finding that Qantas had contravened section 348(1)(a) of the *Fair Work Act 2009* (Cth). The matter was remitted to the Federal Court of Australia for further proceedings to determine appropriate remedies.