Qantas has been ordered to pay a huge $90 million penalty after the Federal Court ruled it illegally sacked more than 1800 workers during the COVID-19 pandemic.
The sackings, which happened in 2020, affected baggage handlers, cleaners, and ground staff. The court found that Qantas made the move to weaken union power in wage talks.
Qantas appealed the decision, but the High Court rejected it, which led to the penalty being handed down on Monday.
The Transport Workers Union (TWU) had asked the court to order the maximum penalty of $121 million, while Qantas had pushed for a lower penalty between $40 million and $80 million.
Justice Michael Lee said the penalty needed to be high because of the “sheer scale of the contraventions, being the largest of their type,” and to stop other companies from doing the same.
He ordered Qantas to pay $90 million, with $50 million going directly to the union that took legal action.
“To deprive someone of work illegally is to deprive someone of an aspect of their human dignity, and this is not assuaged simply by expressions of regret,” Lee said.
He criticised Qantas for its actions after the sackings and said the company was not honest with the court about the outsourcing decision.
Lee added that Qantas showed the “wrong kind of sorry”, caring more about the damage to its image than the pain caused to workers.
He also said Qantas bosses allowed “error to creep into the process” of recording how the decision was made, and that this showed change was needed at the company.
Qantas had publicly apologised, but the court heard it later tried to avoid paying compensation to the affected staff.
TWU national secretary Michael Kaine said the decision was a victory and the biggest fine in Australian industrial history.
“[These employees] weren’t just sacked, they were told by Qantas that they were delusional for questioning it,” he said.
“This ruthless, self-interested and illegal calculation to kick them to the kerb has rightfully merited the largest ever penalty of its kind.”
Kaine said the ruling sent a strong message.
“This was an egregious wrong that had to be righted,” he said.
“Unless we challenged this decision, we were effectively providing a permission slip for this to happen in future.”
Qantas must also pay a $120 million compensation bill for the pain, suffering and financial loss experienced by the workers.
But Justice Lee said he wasn’t convinced Qantas would actually pay this money, based on the information given in court.
He noted that Qantas only started to take responsibility for its actions in 2023 – around the same time former CEO Alan Joyce stepped down.
Many union members and their supporters were in the courtroom and exchanged smiles and hugs after Lee handed down his decision.
Qantas CEO Vanessa Hudson responded to the ruling, saying the airline accepted the outcome and apologised.
“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,” she said.
“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.
“This remains our highest priority.”
Don Dixon, a former employee who was illegally sacked, said it was time for Qantas to take action.
“If you want to be the spirit of Australia, then back Australians,” he said.
Image: Merrillie Redden / Shutterstock.com
