Australia’s Federal Court has ordered Qantas Airways to pay a record A$90 million ($58.6 million) for unlawfully sacking nearly 1,800 ground staff during the COVID-19 pandemic, criticising the airline for showing little genuine contrition.
According to Reuters, Judge Michael Lee said on Monday the penalty – the largest ever imposed under the country’s labour laws – was needed to ensure the breaches could not be dismissed as “the cost of doing business.”
The court found that Qantas dismissed 1,820 baggage handlers, cleaners and ground crew in 2020 to outsource their roles, in breach of the Fair Work Act. The Federal Court first ruled in 2021 that the move amounted to “adverse action” designed to stop employees exercising workplace rights, a decision the airline unsuccessfully appealed to the High Court.
Judge slams culture and strategy
Lee said Qantas’ public apologies and changes to its board and management appeared motivated more by reputational damage than remorse for the harm done to workers.
“I accept Qantas is sorry, but I am unconvinced that this measure of regret is not, at least in significant measure … the wrong kind of sorry,” he said.
He also rebuked the airline’s approach to litigation and public relations, noting it announced an appeal against the 2021 decision immediately after judgment was handed down, without time to consider the lengthy ruling, and later issued statements “spinning” the outcome while downplaying findings of unlawful conduct.
The judge criticised the company for not calling its current chief executive, Vanessa Hudson – then chief financial officer – to testify, saying: “It is one thing for the ‘Qantas News Room’ to issue press releases by a CEO saying sorry; it is quite another for written assertions of contrition, recognition of wrong and cultural change to be tested in a courtroom.”
Fine distribution and compensation
Of the penalty, A$50 million ($32.6 million) will be paid to the Transport Workers’ Union (TWU), which brought the case against the airline.
“Against all the odds, we took on a behemoth … that had shown itself to be ruthless, and we won,” TWU national secretary Michael Kaine said.
The decision comes after Qantas last December agreed to establish a A$120 million ($78.2 million) compensation fund for affected staff.
Qantas said it would comply with the court order.
“We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families,” Hudson said in a statement.
