Qantas Airways Limited & Anor v Transport Workers Union of Australia

Qantas Airways Limited and another party sought judicial review of a decision by the Fair Work Commission (FWC) that had found Qantas had engaged in unlawful industrial action. The Transport Workers Union of Australia (TWU) was the respondent. The dispute concerned the FWC's determination that Qantas's decision to outsource a significant portion of its ground handling services, which resulted in the termination of employment for approximately 2,500 employees, constituted unlawful industrial action under section 408 of the Fair Work Act 2009 (Cth).

The central legal issue before the Full Federal Court was whether the FWC had erred in its interpretation and application of section 408 of the Fair Work Act. Specifically, the court was required to determine whether Qantas's decision to outsource its ground handling services, and the consequent redundancies, could be characterised as "industrial action" within the meaning of the Act, and if so, whether it was unlawful.

The Full Federal Court reasoned that the definition of "industrial action" in section 408 of the Fair Work Act is broad and encompasses actions taken by employers that are intended to coerce or induce employees to accept or not accept terms and conditions of employment. The court found that Qantas's decision to outsource was motivated by a desire to achieve cost savings and operational efficiencies, which were directly linked to the terms and conditions of employment for its ground handling staff. Consequently, the court held that the FWC had correctly found that Qantas's actions constituted industrial action and that, as it was not protected action, it was unlawful.

The Full Federal Court dismissed Qantas's application for judicial review and affirmed the FWC's decision.