Australia’s Federal Court ordered Qantas Airways to pay a record A$90 million (about US$58.6 million) after finding the carrier illegally outsourced the jobs of 1,820 baggage handlers, cleaners and other ground staff at the height of the Covid-19 pandemic in 2020. The ruling, delivered by Justice Michael Lee on 18 August, is the largest penalty ever imposed under the nation’s industrial relations laws and represents 75 percent of the statutory maximum. Half the fine—A$50 million—will be paid directly to the Transport Workers Union, which brought the case, with the remaining A$40 million earmarked for future payments to affected employees. The sanction comes on top of the A$120 million compensation fund Qantas agreed to in December for the dismissed workers after its appeal to the High Court was rejected. In a strongly worded judgment, Lee criticised the airline’s litigation strategy and said its public apologies amounted to the “wrong kind of sorry,” noting that Qantas had initially sought to avoid any compensation. He said the magnitude of the penalty was needed to ensure the misconduct could not be regarded as a routine cost of doing business. Chief Executive Vanessa Hudson said Qantas accepts the decision and “sincerely apologises” to former staff, adding that the company is working to rebuild trust with employees and customers. The case underscores heightened judicial scrutiny of employer conduct and signals that courts are prepared to levy substantial deterrent fines for large-scale labour-law breaches.
Qantas fined $59M for illegal pandemic layoffs https://t.co/8T9CbdV56p https://t.co/SngeTsgW4A
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An Australian judge said Qantas' outsourcing of 1,820 baggage handler and cleaner jobs at airports in late 2020 was the “largest and most significant contravention” of relevant Australian labor laws in their 120-year history. https://t.co/0JTy4JosSI