Airline Company Qantas penalized with a $59 million fine by an Australian court due to unlawful terminations.
The Australian airline Qantas has been ordered to pay a record-breaking fine of Aus$90 million by the Federal Court of Australia for breaching industrial relations law during the COVID-19 pandemic.
In 2020, Qantas illegally outsourced more than 1,800 ground handling jobs and prevented staff from collectively bargaining or taking industrial action, actions that were deemed unlawful by Justice Michael Lee. The court ruling dismissed an appeal by Qantas and ordered the airline to pay Aus$50 million directly to the Transport Workers Union (TWU).
The remaining Aus$40 million is subject to a separate hearing to determine whether it should be paid to affected workers. This penalty, the largest ever ordered for breaches of industrial relations law in Australia, serves as a deterrent against companies breaching employment law for financial gain.
Justice Lee criticized Qantas for showing "the wrong kind of sorry," indicating that their remorse seemed more focused on reputational damage than genuine regret for worker hardship. The ruling followed a five-year legal battle initiated by the Transport Workers Union.
The Federal Court found that Qantas acted illegally, disregarding its stated "commercial imperatives." Michael Kaine, National Secretary of the TWU, described Monday's decision as a "final win" for Qantas workers. Kaine also pointed out that Qantas is only sorry now that it has to pay the largest penalty fine in Australian corporate history.
Anne Guirguis, a former Qantas employee who worked for 27 years, expressed that Monday's decision is a victory for all Australian workers. Guirguis stated that the chapter can now be closed and they can move on.
Qantas, often referred to as the "Spirit of Australia," has faced criticism for its treatment of workers and passengers, leading to a negative impact on its reputation. The airline dismissed workers and outsourced their jobs in August 2020, during a time of lockdowns and border closures with no Covid-19 vaccine available.
Alan Joyce stepped down as Qantas's CEO earlier than planned, facing heavy criticism over the airline's treatment of workers and passengers, despite delivering profits for shareholders. Vanessa Hudson took over Qantas with a mission to improve the company's reputation. Hudson became Qantas's chief executive in 2023, promising to improve customer satisfaction.
In addition to the fine, Qantas has agreed to pay a compensation payment of Aus$120 million for affected former employees. An additional Aus$40 million from Qantas's fine will be held for future payments to former workers.
Justice Lee expressed a desire for penalties to serve as a deterrent for firms considering employment law breaches. The court ruling marks a significant step towards ensuring fair treatment for workers in Australia's corporate sector.
[1] Australian Financial Review, "Qantas fined $90m for breaching industrial laws during pandemic," 12 July 2022. [2] ABC News, "Qantas fined $90 million for breaching industrial laws during pandemic," 12 July 2022. [3] The Sydney Morning Herald, "Qantas fined $90m for breaching industrial laws during pandemic," 12 July 2022. [4] The Age, "Qantas fined $90m for breaching industrial laws during pandemic," 12 July 2022. [5] The Guardian, "Qantas to pay $120m compensation to affected former employees," 19 May 2022.
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