Qantas Airways Slapped with Record A$90 Million Fine for Unlawful Pandemic Layoffs
Australia’s Federal Court has dealt a hefty blow to Qantas Airways, imposing a record fine of A$90 million ($59 million) on the airline for unlawfully dismissing 1,800 ground staff amidst the COVID-19 pandemic. The court’s decision, delivered on Monday, marks a significant moment in Australian labor law history.
Judge Michael Lee lambasted the airline for its “lack of contrition”, casting doubt over whether Qantas’ remorse was genuinely for the harm inflicted on its workers or merely for the tarnish on its public image. The fine stands as the largest ever levied against a company in the annals of Australian labor law.
The judge further noted that the outsourcing of 1,820 baggage handlers and cleaners in late 2020 constituted the “largest and most significant contravention” of Australian labor laws in their 120-year history. Qantas had defended the layoffs as a commercial decision taken in the face of pandemic uncertainty. However, the court ruled that this amounted to “adverse action” that hindered staff from exercising their workplace rights and forming unions.
Qantas had projected an annual saving of A$125 million through the outsourcing of these roles. Vanessa Hudson, the airline’s CEO who served as CFO during the layoffs, extended an apology to the affected employees and their families.
This hefty fine is in addition to a separate A$120 million compensation payment that Qantas agreed to disburse to former employees in December. A substantial A$50 million portion of the fine will be directly allocated to the Transport Workers’ Union, the entity that initiated the case against Qantas.
Source: CNN