Australia-based airline Qantas has lost its appeal against a Federal Court decision that found the outsourcing of about 2,000 ground crew workers was illegal, reports ABC News. But the company now plans to appeal the landmark case to the High Court. If it loses it could be liable for hefty costs including compensating the sacked workers as well as facing penalties. Last year, in one of the largest reinstatement cases ever heard, the Federal Court found in favour of the Transport Workers Union (TWU) against Qantas in challenging the outsourcing of about 2,000 jobs by the airline. In August 2020, Qantas revealed it would be outsourcing its ground handling operations at 10 Australian airports to third party contractors, and as a result, 1,683 employees lost their jobs. It found Qantas' decision to outsource the baggage-handling and cleaning jobs was in breach of the Fair Work Act. Qantas appealed that decision, but the Full Federal Court today dismissed the airline's attempt to overturn a ruling that it sacked workers illegally.

“Qantas has always said the decision to outsource our ground handling function was based on lawful commercial reasons in response to the unprecedented impact of the Covid crisis," the company said in a statement. Meanwhile, TWU is now calling for a substantial compensation package for workers.

It also has called on the Qantas board to sack its chief executive, Alan Joyce, and the key decision-maker in the outsourcing case, domestic and international chief executive Andrew David.