Airlines giant Qantas penalized with a record-breaking $90 million fine over unlawful job cuts during the pandemic period
In a landmark decision, the Federal Court of Australia has imposed a fine of AU$90 million on Qantas, the country's leading airline, for illegally dismissing 1,820 baggage handlers in 2020 during the COVID-19 pandemic. This ruling, which concluded a five-year legal battle, sends a clear message: courts are prepared to penalise even major corporations when they violate workplace laws.
The court's decision was described by Michael Kaine, TWU national secretary, as a "David and Goliath" battle win and the "most significant industrial outcome in Australia's history." AU$50 million of the fine will be paid to the Transport Workers' Union (TWU), with the remaining AU$40 million to be determined in a later hearing.
The fine has sparked criticism towards Qantas, with some accusing the company of prioritising financial resilience over ethical labour practices. Despite the ruling's heavy toll, Qantas continues to report strong profits, fueling these concerns.
Qantas Group chief executive Vanessa Hudson admitted the airline's actions had a significant impact on employees and their families. However, she expressed remorse and apologised to the affected employees and their families. Hudson, who previously served as the airline's Chief Financial Officer (CFO), did not testify during the proceedings.
Justice Michael Lee, who presided over the case, described the legal fight between Qantas and the TWU as "no ordinary case." He stated that the fine was meant to serve as a "real deterrent" to other employers, emphasising the harm caused to the impacted employees.
Dan Trindade, an employment law expert at Clayton Utz, suggested that the fine may not be sufficient to deter other companies. He argued that the size of the fine should be proportional to the company's profits to have a more significant impact.
Lee, a legal expert, criticised Qantas for using an aggressive legal strategy, withholding key testimony, and failing to address the wrongdoing transparently. He expressed doubts about Qantas's sincerity and whether their remorse was genuine or performative.
The total cost of Qantas's 2020 outsourcing decision, including the AU$90 million fine and a separate AU$120 million compensation agreement, is above AU$200 million. This significant financial burden underscores the importance of adhering to industrial laws and treating employees fairly.
The Transport Workers' Union (TWU) is advocating for the sum to go directly to the affected employees. They argue that the fine should serve as restitution for the hardship caused by Qantas's actions.
Some legal experts praised the unprecedented size of the fine as a strong warning to employers who might break industrial laws, while others disagreed. Regardless of the debate, the ruling serves as a reminder that corporations must prioritise ethical labour practices alongside financial success.
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