Qantas Airways has been fined AU$90m (£47m; $59m) after a judge ruled the airline illegally dismissed more than 1,800 ground staff at the height of the Covid-19 pandemic.
The penalty, handed down by Australian Federal Court Justice Michael Lee on Monday, comes on top of the AU$120m (£63m; $78m) in compensation Qantas had already agreed to pay affected employees after the High Court unanimously upheld an earlier ruling that the outsourcing was unlawful.
Justice Lee described the outsourcing of 1,820 baggage handler and cleaner roles in late 2020 as the “largest and most significant contravention” of labour laws in Australia’s 120-year industrial history.
The Transport Workers Union (TWU), which brought the case, had argued for the maximum penalty of more than AU$121m. Justice Lee ruled AU$90m was sufficient to act as a deterrent, noting Qantas had projected annual savings of AU$125m from outsourcing.
He also cast doubt on the airline’s expressions of regret, saying Qantas had pursued an “unrelenting and aggressive litigation strategy” and had even argued it owed no compensation to the workers while publicly offering apologies.
“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 said.
Qantas chief executive Vanessa Hudson, who was the company’s chief financial officer when the layoffs took place, apologised after the ruling. “We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result,” she 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. 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,” she added.
Justice Lee directed that AU$50m of the fine be paid to the TWU, after noting no government agency had moved to investigate or prosecute the case. A separate hearing will decide where the remaining AU$40m will be allocated.
TWU national secretary Michael Kaine said the ruling vindicated the union’s five-year battle. “This is a day of justice for thousands of workers who stood together against one of Australia’s most powerful companies,” he said.
