MELBOURNE (AP) – On Monday, a judge imposed a fine of 90 million Australian dollars (approximately $59 million) on Qantas Airways for the unlawful termination of over 1,800 ground staff during the early days of the Covid-19 pandemic. This penalty is in addition to the AU$120 million (around $78 million) in compensation that the airline had previously agreed to pay to its former employees.
Justice Michael Lee of the Australian Federal Court remarked that the outsourcing of 1,820 baggage handlers and cleaners at Australian airports in late 2020 represented "the largest and most significant contravention" of the relevant labor laws in Australia's 120-year history. He emphasized that the significant penalty was necessary to deter future violations and pointed out that Qantas had anticipated saving AU$125 million ($81 million) annually through this outsourcing decision.
Last December, Qantas conceded to a compensation of AU$120 million following a unanimous ruling by seven High Court judges, who found that the outsourcing of jobs was illegal. The Transport Workers Union, which initiated the legal action against Qantas, had advocated for the maximum fine of AU$121,212,000 ($78,969,735). However, Justice Lee determined that the minimum fine required to serve as a deterrent would be AU$90 million.
Lee cast doubt on the sincerity of Qantas's apology for its unlawful conduct, noting that the airline had later attempted to argue that it owed no compensation to its former employees. He stated, "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."
While acknowledging that Qantas’s current leaders might exhibit some genuine remorse, Lee suggested that this regret more likely stemmed from the reputational damage caused by the case rather than concern for the affected workers. Vanessa Hudson, the current CEO of Qantas, who served as the chief financial officer during the layoffs, issued a statement apologizing to the dismissed ground handling employees and their families. She acknowledged that the decision to outsource jobs during such uncertain times caused severe hardship for many individuals.
In an important part of the ruling, Justice Lee allocated AU$50 million ($33 million) of the fine to the Transport Workers Union because no governmental body had shown interest in investigating or prosecuting Qantas. He highlighted that, "But for the union… Qantas’s contravening conduct would never have been exposed, and it would never have been held to account for its unlawful conduct."
Michael Kaine, the national secretary of the union representing 60,000 members, expressed a sense of vindication following the ruling, describing it as the "most significant" industrial outcome in Australia's history. He emphasized that the decision sends a clear message to Qantas and other employers across Australia: illegal treatment of your workforce will result in accountability.
Furthermore, Qantas has previously admitted to unlawfully handling both passengers and employees while navigating economic challenges imposed by the pandemic. The airline agreed last year to a compensation and fine related to falsely advertising tickets for canceled flights, which led to a lawsuit from the Australian Competition and Consumer Commission. This ruling is part of a broader trend of scrutiny facing Qantas regarding its business practices during the pandemic.
