AirlineQantas Faces Heavy Penalty for Coronavirus-Related Job Cuts
Qantas Faces Record Fine for Illegal Mass Layoffs During COVID-19 Pandemic
Australia's largest airline, Qantas, has been hit with a record fine of 90 million Australian dollars for illegal mass layoffs during the Corona pandemic. This penalty, imposed by the Federal Court of Australia, is the largest ever imposed for illegal mass layoffs in Australia's history[1][2][3].
The illegal layoffs involved the dismissal of around 1800 employees whose jobs were outsourced to external service providers such as Swissport and Menzies[3]. The affected employees were baggage handlers and ground staff for Qantas.
The fine was the result of a five-year legal battle initiated by the Transport Workers’ Union (TWU)[3]. Qantas had already agreed to pay $120 million in compensation to the affected former employees before the fine was imposed[2][3][4].
In his ruling, Federal Court Justice Michael Lee criticized Qantas for a lack of remorse regarding the illegal mass layoffs. He noted the deterrent value of the record penalty and emphasized that illegally taking away someone's job is like taking away part of their dignity, and that loss cannot be healed by mere verbal regret[1][2].
The TWU will receive more than half of the fine, approximately 45 million Australian dollars[4]. The remaining 40 million Australian dollars of the fine will be decided at a later date.
Labor lawyer Josh Bornstein commented that the ruling shows that courts will not tolerate attacks on workers' rights[5]. He added that Qantas was more concerned about the damage to its image than the impact on the dismissed employees.
Judge Lee also stated that Qantas fought until it could fight no more, indicating the airline's persistent efforts to defend its actions[1][2]. The union had demanded a fine of 121 million Australian dollars, while Qantas argued for a fine of 40 to 80 million[6].
This case serves as a significant reminder of the importance of upholding workers' rights and the consequences that companies may face when they breach those rights.
Sources: [1] ntv.de [2] raf/dpa [3] The Sydney Morning Herald [4] The Guardian [5] The Age [6] ABC News Australia
- The record fine imposed on Qantas for illegal mass layoffs during the COVID-19 pandemic underscores the significance of adhering to both community policy and employment policy, especially in times of crisis.
- As businesses face trying times, the employment policy debate in politics becomes increasingly relevant, with this Qantas case highlighting the severe consequences of disregarding workers' rights.
- The $90 million fine levied against Qantas for mass layoffs will partially fund the Transport Workers’ Union, illustrating how finance and business matters intertwine with general-news and careers.
