Qantas taken to High Court over COVID-19 sick leave

Airline faces yet another battle with its own employees over coronavirus measures. This is what the argument is.

| More on:
a court gavel and scales of justice

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Qantas Airways Limited (ASX: QAN) will face off against employees in the High Court of Australia on Wednesday.

Four unions are appealing against a Full Federal Court decision last month that the airline did not have to provide sick, compassionate or carer's leave for staff that had been stood down.

Qantas stood down about 20,000 employees at the start of the COVID-19 pandemic when it became apparent its planes would be grounded.

The Australian Council of Trade Unions (ACTU) claims Qantas' denial forced some seriously ill workers to take a redundancy for financial reasons.

"Qantas' behaviour toward the most unwell people in its workforce has been callous and illegal," said ACTU assistant secretary Scott Connolly.

"Stand downs are meant to be strictly limited to particular circumstances, but even in those circumstances workers should not be prevented from taking leave or being paid their basic entitlements."

Connolly added the High Court result could have ramifications for all Australian businesses and workers.

"This appeal is not just important for Qantas employees who've been unfairly denied access to their own sick, compassionate, personal or carer's leave, it's critical to all workers in Australia who may be stood down in the future."

The airline did provide annual and long service leave during the coronavirus stand down.

The Motley Fool has contacted Qantas for comment.

Running battle with its own staff

Law firm Maurice Blackburn is handling the appeal on behalf of the Transport Workers Union (TWU), the Electrical Trades Union (ETU), the Australian Workers Union (AWU) and Australian Manufacturing Workers Union (AMWU).

"Denying sick workers the leave they have built up and pushing them in some cases out of their jobs in order to access redundancy payments to pay bills is utterly despicable," said TWU national secretary Michael Kaine.

"Qantas has received over $800 million in taxpayers' support to help it during the pandemic but instead of acting like a responsible employer in return it is trashing lives and trashing jobs."

There was one dissenting judge, Justice Mordy Bromberg, in the Full Federal Court hearing. The unions are pursuing his line of argument in the High Court.

"The corollary of this contention is that there is no entitlement to any kind of paid leave whatsoever, whenever an employee cannot be usefully employed," he said in the judgment.

"That notion is startling in its reach and effect."

Just last week Qantas had a separate court victory against the unions. The Full Federal Court reversed an earlier judgment that the airline had illegally pocketed JobKeeper payments that should have been passed along to employees.

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Happy young couple doing road trip in tropical city.
Broker Notes

Does Macquarie rate CAR Group shares a buy, hold or sell after its FY25 result?

Is it time to buy this global ASX growth share?

Read more »

Mining workers in high vis vests and hard hats discuss plans for the mining site they are at as heavy equipment moves earth behind them, representing opportunities among ASX 200 shares as nominated by top broker Macquarie
Resources Shares

Experts reveal ratings on 3 popular ASX 200 mining shares

Analysts have shared their insights following a strong rally for the ASX 200 materials sector last week.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Market News

5 things to watch on the ASX 200 on Wednesday

A good session is expected for Aussie investors today.

Read more »

iphone with currency signs on floating on top
Share Market News

The fintech stock that could be set to soar

One broker has put a mouthwatering price target on this finance stock. 

Read more »

Woman dining at a table with oversized fork and knife in the hospitality industry.
Opinions

Why I made Guzman Y Gomez shares my latest buy

I believe this business has a lot of spicy growth to come.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Beat the RBA cuts with these top ASX dividend stocks

Brokers think these stocks could be top picks for income investors.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Share Market News

'A very special asset': Why this ASX stock could rise 60%+

Big returns could be on the cards for buyers of this stock according to Bell Potter.

Read more »

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
Share Gainers

Here are the top 10 ASX 200 shares today

It was another day for the history books this Tuesday.

Read more »