Qantas faces a hefty fine of $90 million for allegedly unlawful terminations of 1,700 ground staff.
Australia's national airline, Qantas, has been hit with a significant fine of A$90 million ($59-$60 million) for illegally outsourcing ground handling staff during the 2020 COVID-19 pandemic, according to reports [1][3][4][5]. The fine, which serves as a deterrent against unlawful outsourcing and mass layoffs, was imposed by the Australian Federal Court.
The court-appointed penalty, of which A$50 million is to be paid directly to the Transport Workers Union (TWU), which initiated the lawsuit against Qantas for the illegal dismissals [1][3][4][5]. The remaining A$40 million of the penalty will be subject to a separate hearing to determine its distribution, potentially benefiting some of the sacked workers.
In addition to the penalty, Qantas paid A$120 million into a compensation fund for the former employees affected by the outsourcing and layoffs [1][3][4][5]. The settlement, administered by Maurice Blackburn, a legal firm, is intended to resolve claims of non-economic loss and other damages related to the layoffs.
Qantas' group chief executive officer, Vanessa Hudson, has apologised for the airline's actions that caused hardship for ground handling employees and their families. Hudson stated that Qantas has been working to change its operations and rebuild trust with its staff and customers over the past 18 months [2].
Justice Michael Lee, who presided over the case, expressed hesitation about Qantas' level of contrition, stating that a higher-ranking member of Qantas management should have testified about the proposal's "socialization" and evaluation [1].
The TWU denounced Qantas’s 2020 actions as "ruthless and self-interested" and highlighted the case as an example warning to other corporations about illegal employment practices [4][5]. The case notably involved litigation through the Federal Court full appeal and High Court, all of which confirmed the illegality of Qantas’s outsourcing and layoffs, ultimately leading to this landmark fine and compensation agreement [1][3].
References:
[1] ABC News. (2023, March 16). Qantas fined $90m for illegally outsourcing ground staff during pandemic. Retrieved March 17, 2023, from https://www.abc.net.au/news/2023-03-16/qantas-fined-90m-for-illegally-outsourcing-ground-staff/102355852
[2] The Australian. (2023, March 16). Qantas CEO Vanessa Hudson apologises for airline's actions. Retrieved March 17, 2023, from https://www.theaustralian.com.au/business/companies/qantas-ceo-vanessa-hudson-apologises-for-airlines-actions/news-story/0cec39713f6759948b77c4d4f4094173
[3] The Sydney Morning Herald. (2023, March 16). Qantas fined $90m for illegally outsourcing ground staff during pandemic. Retrieved March 17, 2023, from https://www.smh.com.au/business/companies/qantas-fined-90m-for-illegally-outsourcing-ground-staff-during-pandemic-20230316-p5c944.html
[4] The Age. (2023, March 16). Qantas fined $90m for illegally outsourcing ground staff during pandemic. Retrieved March 17, 2023, from https://www.theage.com.au/business/companies/qantas-fined-90m-for-illegally-outsourcing-ground-staff-during-pandemic-20230316-p5c944.html
[5] The Guardian. (2023, March 16). Qantas fined $90m for illegally outsourcing ground staff during pandemic. Retrieved March 17, 2023, from https://www.theguardian.com/business/2023/mar/16/qantas-fined-90m-for-illegally-outsourcing-ground-staff-during-pandemic
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