The Australian airline faces scrutiny and repercussions following a court's decision aimed at deterring similar corporate behavior in the future, while the Transport Workers' Union celebrates this as a pivotal victory for affected employees.
**Qantas Fined A$90 Million for Unlawful Layoffs Amid Pandemic**
**Qantas Fined A$90 Million for Unlawful Layoffs Amid Pandemic**
Qantas has been handed a record A$90 million fine for unlawfully terminating over 1,800 ground staff during the COVID-19 pandemic, marking a significant judgement in Australian industrial law.
In a landmark ruling, an Australian court has imposed a staggering A$90 million (£43 million; $59 million) fine on Qantas, the nation’s largest airline, for illegally dismissing over 1,800 ground workers during the COVID-19 pandemic. This penalty represents the largest ever awarded in Australia for breaches of industrial relations laws. The Federal Court's Justice Michael Lee emphasized that the hefty fine serves as a deterrent for other employers to avoid engaging in similar unlawful actions.
The Transport Workers' Union, which has tirelessly campaigned against Qantas’ decision to outsource its ground handling operations in 2020, welcomed the ruling. They described it as a "moment of justice" for dedicated staff who had worked for the airline, affirming that this action culminated a lengthy legal battle that lasted five years. The fine includes A$50 million to be paid directly to the union, which instigated the lawsuit after the layoffs.
In her response, Qantas Group CEO Vanessa Hudson expressed regret over the harm caused to employees and their families, admitting that their decision to outsource operations led to genuine suffering. She stated, “We sincerely apologise to each and every one of the 1,820 ground handling employees affected.”
Justice Lee's ruling also called into question Qantas' corporate culture and the authenticity of its remorse. He criticized the airline’s aggressive legal tactics, suggesting they were an attempt to evade financial liabilities to its former workers. Additionally, earlier court findings revealed that Qantas' move to outsource was partly aimed at curbing potential industrial actions by union members.
The imposed fine is on top of an anticipated A$120 million payment Qantas agreed to provide to previously laid-off workers in 2024, following a series of unsuccessful appeals. Legal analysts indicate that while the fine is substantial, it may not sufficiently deter future misconduct if companies find the financial benefits of outsourcing outweigh potential penalties. Employment law expert Dan Trindade noted that increased calls for harsher penalties from the government could arise if this fine is ultimately deemed insufficient.
Qantas has faced a range of scandals recently, including a significant A$100 million penalty in a separate case for selling tickets on flights that were subsequently canceled, highlighting ongoing issues regarding its operational practices and decision-making during challenging times. The airline continues to navigate the repercussions of its past pandemic-era tactics and their impact on employee welfare.
