The Federal Court of Australia fined Qantas Airways AU$90 million for unlawfully dismissing 1,820 ground handling employees as the pandemic emerged at the beginning of 2020. According to Justice Michael Lee, who made the ruling, the sacking was among the worst in Australian industrial history.
The fine is a result of a unanimous High Court decision in 2023 dismissing the appeal made by Qantas. This verdict validated the breach of workplace legislation by the airline. Qantas has already settled with the affected staff to pay AU$120 million in recompense. Justice Lee explained the fine of AU$90 million was the least that would act as a deterrent. It pointed out that Qantas would save itself AU$125 million per year by outsourcing, which made it impose such a heavy financial penalty.
The court questioned Qantas's litigation policy and its inability to take responsibility. Justice Lee pointed out that even after the High Court ruling, Qantas was trying to evade compensating the fired employees.
He pointed out that the actions of the airline were more an act to protect its image before the people than to protect the workers. Lee said that, although the current leadership at Qantas might say it regrets the situation, it is more out of concern as to reputational damage than as a result of harm to staff. Vanessa Hudson, then CFO and now CEO of Qantas, issued a written apology. She also acknowledged the distress it caused and said that the company was on a path to restoring confidence among its employees and consumers.
The court ordered that AU$50 million of the fine be paid to the Transport Workers Union (TWU). The judge commended the union's effort in revealing Qantas's unlawful activities, as no government agency had come on board to pursue the matter.
The rest of the AU$40 million will be assigned during a subsequent hearing. TWU national secretary Michael Kaine said the decision was a big step in Australian industrial relations and a warning to employers of the consequences of violating labour laws. The Qantas company has also encountered other legal issues amid the pandemic, as it has been fined AU$120 million for misleading customers regarding cancelled flights.