Qantas Hit with Record A$90 Million Fine for Unlawful Staff Sacking
MELBOURNE – Qantas Airways, Australia’s national airline, has been ordered to pay a record A$90 million (US$59 million) fine for unlawfully dismissing over 1,800 ground staff at the beginning of the COVID-19 pandemic in late 2020. This significant penalty, handed down by Australian Federal Court Justice Michael Lee on Monday, comes on top of A$120 million (US$78 million) in compensation the airline had already agreed to pay to the illegally terminated employees.
The Details of the Landmark Ruling
Justice Lee characterized the outsourcing of 1,820 baggage handler and cleaner positions at Australian airports as the “largest and most significant contravention” of Australian labor laws in their 120-year history. This decision follows a unanimous High Court rejection of Qantas’s appeal last December, which affirmed the illegality of the outsourcing.
Airline executives had projected annual savings of A$125 million (US$81 million) by outsourcing these jobs. The Transport Workers Union (TWU), representing 60,000 members, led the five-year legal battle against Qantas, initially seeking a maximum fine of A$121,212,000 (US$78,969,735). Justice Lee ultimately set the minimum deterrent fine at A$90 million.
Qantas’s Apology Met with Skepticism
Qantas CEO Vanessa Hudson, who served as the airline’s chief financial officer during the period of the layoffs, issued an apology acknowledging the “genuine hardship” caused to the affected employees and their families. However, Justice Lee expressed skepticism regarding the airline’s sincerity. He noted that Qantas had previously fought to deny any compensation to its former staff, suggesting their “genuine regret” more likely stemmed from damage to the company’s reputation rather than true remorse for the affected workers.
Distribution of the Fine
A significant portion of the fine, A$50 million (US$33 million), will be directed to the Transport Workers Union. Justice Lee emphasized that “But for the union…, Qantas’ contravening conduct would never have been exposed and it would never have been held to account for its unlawful conduct.” The allocation of the remaining A$40 million (US$26 million) of the fine will be determined at a later hearing.
Broader Legal Challenges for Qantas
This ruling adds to Qantas’s recent legal troubles. Last year, the airline agreed to pay an additional A$120 million (US$78 million) in compensation and a fine following a lawsuit by the Australian Competition and Consumer Commission (ACCC). The consumer watchdog alleged that Qantas engaged in misleading conduct by selling tickets for over 8,000 flights between May 2021 and July 2022 that had already been canceled.
Union Hails “Most Significant Industrial Outcome”
Michael Kaine, National Secretary of the TWU, hailed the ruling as the “most significant industrial outcome in Australia’s history.” He declared that the victory sends “a really clear message to Qantas and to every employer in Australia: Treat your work force illegally and you will be held accountable. Against all the odds, we took on a behemoth that had shown itself to be ruthless and we won.”
