Qantas Fined Record $90M For Unfair Dismissals
Australian airline Qantas has been issued an historic $90 million fine for unfairly dismissing more than 1,800 employees during the pandemic.
The Australian Federal Court found Qantas acted unlawfully when it fired 1,820 baggage handlers and other ground staff in 2020 at the height of the Covid-19 pandemic.
The landmark $90 million penalty is on top of the $120 million Qantas was ordered to pay earlier this year in compensation to sacked employees caught up in the company’s outsourcing controversy, bringing a mammoth five-year legal battle to a close.
The Transport Workers’ Union (TWU) welcomed the decision by Justice Michael Lee, with TWU national secretary Michael Kaine describing it as “the most significant industrial outcome in Australia’s history”.
Justice Lee heavily criticised Qantas’ management of the decision to outsource staff during the pandemic, which occurred under former CEO Alan Joyce, as well as its handling of the legal process thereafter.
Lee said Qantas’ public relations team had rushed to publish press releases to manipulate the outcome in their favour, while the decision to not have CEO Vanessa Hudson testify in court made it difficult to fully assess the company’s “expression of contrition”.
Qantas released a public statement acknowledging the Federal Court ruling, with an apology from Hudson that has left many questioning if the company’s management is genuinely remorseful for the harm they caused, or just that they got caught.
“We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result,” Hudson said.
“The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families.”
The statement also reported $120 million was paid by Qantas into the compensation fund for affected employees, to be administered by Maurice Blackburn.
Justice Lee pointedly described Qantas as “the wrong kind of sorry”. And for many of the sacked workers, especially those over 50, it’s far too little way too late as they still struggle to find employment given their age.
The outsourcing debacle is just the latest in a series of controversies and industrial relations disputes that occurred under Joyce’s reign, resulting in extensive negative press for Qantas in recent years.
Joyce stepped down in 2023 when it was revealed Qantas had sold tickets on cancelled and ‘ghost’ flights during the pandemic. The company was fined $100 million and Joyce walked away with a lucrative corporate payout, never being held accountable for his actions.
It’s a pitiful and shameful demise for what was once one of Australia’s proudest national icons. Once the ‘Spirit Of Australia’, the flying kangaroo has become a mocking symbol of Qantas’ corporate arrogance and disdain for its customers and employees.
