In a landmark ruling by Australia's Federal Court, Qantas has been ordered to pay a record A$90 million for illegal layoffs of ground workers amid the pandemic, highlighting serious breaches of labor laws.
Qantas Faces Historic A$90M Fine for Pandemic Layoffs
Qantas Faces Historic A$90M Fine for Pandemic Layoffs
Qantas has been hit with an unprecedented fine for unlawfully terminating 1,800 employees during the COVID-19 pandemic.
In a significant legal development, Australia's airline giant, Qantas, was fined A$90 million (approximately £43 million or $59 million) due to the unlawful termination of over 1,800 ground workers during the COVID-19 pandemic. The case, brought forth by Australia’s Transport Workers’ Union, culminated in the largest fine in Australian history for infractions related to industrial relations laws.
Federal Court Justice Michael Lee emphasized the importance of this penalty as a deterrent for other employers potentially considering similar actions. In official statements, Qantas acknowledged the fine and stated that the decision “holds it accountable” for the substantial harm inflicted on its former employees and their families. Vanessa Hudson, the airline's Group chief executive, expressed sincere apologies to those affected, acknowledging that the decision to outsource operations amid the pandemic indeed led to significant hardships for the laid-off workers.
Described as a pivotal moment for those loyal workers who cherished their roles, the union described the fine as a resolution to a drawn-out "David and Goliath" legal struggle lasting five years. It represents a critical step in enforcing compliance concerning Australia’s workplace regulations, with A$50 million of the fine directed to the Transport Workers’ Union.
Justice Lee questioned the corporate culture at Qantas, citing concerns over the genuineness of the company's remorse and its "aggressive" legal tactics aimed at avoiding compensation for affected workers. In 2021, the court found that Qantas' outsourcing approach was partly intended to prevent workers from taking industrial action, further complicating the airline's defense.
Additionally, Qantas is slated to pay A$120 million in compensation to the workers in 2024 after exhausting multiple legal appeals. Employment law expert Dan Trindade raised concerns that this hefty fine might not suffice as a deterrent, given that Qantas may have saved more money through outsourcing. This spate of illegal terminations is just one of several controversies surrounding Qantas, which faced scrutiny for selling tickets on cancelled flights and dealing with a major customer data breach, reflecting broader issues within the airline's recent operations.
