AU$90 million penalty: Qantas Airways fined for illegal sackings during Covid pandemic; judge questions lack of remorse

A judge in Australia fined Qantas Airways 90 million Australian dollars ($59 million) for unlawfully dismissing more than 1,800 ground staff during the early stages of the Covid-19 pandemic. The penalty is in addition to the AU$120 million ($78 million) compensation the airline had already agreed to pay dismissed employees.Justice Michael Lee of the Australian Federal Court ruled that the dismissal of 1,820 baggage handlers and cleaners at airports in late 2020 was the most serious breach of Australian labour laws in their 120-year history, according to the Associated Press.After Qantas’s appeal was unanimously rejected by seven High Court judges last December, the airline confirmed its wrongdoing and agreed to pay AU$120 million in compensation. The Transport Workers Union (TWU), which initiated the case, had sought the maximum penalty of AU$121 million.Justice Lee determined that AU$90 million was the minimum deterrent, noting Qantas executives had expected annual savings of AU$125 million through outsourcing. He also questioned the airline’s remorse, highlighting its subsequent unsuccessful attempt to avoid paying compensation.“If any further evidence was needed of the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune,” Lee said.“I do think that the people in charge of Qantas now have some genuine regret, but this more likely reflects the damage that this case has done to the company rather than remorse for the damage done to the affected workers,” he added.Following the ruling, Qantas CEO Vanessa Hudson, who was CFO at the time of the redundancies, issued an apology: “We sincerely apologize to each and every one of the 1,820 ground handling employees and to their families who suffered as a result. 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. Over the past 18 months we’ve worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost.”Lee directed that AU$50 million of the fine be paid to the TWU, citing its role in exposing Qantas’s unlawful conduct when no government agency pursued the case. The allocation of the remaining AU$40 million will be decided in a future hearing.TWU national secretary Michael Kaine hailed the judgment, describing it as a landmark victory after a five-year legal battle. “It is a significant — the most significant — industrial outcome in Australia’s history and it sends a really clear message to Qantas and to every employer in Australia: Treat your work force illegally and you will be held accountable,” Kaine said.“Against all the odds, we took on a behemoth that had shown itself to be ruthless and we won,” he added.Qantas has also faced legal action over its treatment of passengers during the pandemic. The airline previously agreed to pay AU$120 million in compensation and fines after the competition watchdog accused it of misleading customers by selling tickets for more than 8,000 flights that had already been cancelled between May 2021 and July 2022.