The Federal Court has ordered Qantas to pay $90 million for illegally sacking staff and outsourcing 1,800 ground-handling jobs during the COVID-19 pandemic.
The fine represents 75 per cent of the maximum penalty of $121 million that the Transport Workers Union (TWU) had argued for. The TWU will receive $50 million, with the remainder to be determined.
In handing down the ruling, Federal Court Justice Michael Lee stated that Qantas had expressed the “wrong kind of sorry” for the outsourcing, saying the airline’s remorse likely related more to the impact on the company than the sacked staff.
The court found that Qantas’ legal actions had also delayed workers’ compensation.
Justice Lee said Qantas likely gained about $200 million by outsourcing jobs, but added that the airline expected an even bigger benefit, the ABC reported.
The penalty comes after a Federal Court ruling that created a $120 million fund – paid by Qantas – to compensate affected workers for financial and personal impacts.
“In 2020, over 1800 Qantas workers took on a huge and audacious battle against this airline, and today’s decision is a final win for both those workers and the tens of thousands of other TWU members who backed them every step of the way,” TWU National Secretary Michael Kaine said.
“These workers took on a fight against a company with almost limitless resources, knowing it was a long shot, and today’s decision is a $90 million message to corporate Australia that workers will stand up for what’s right.
“Qantas was not sorry to workers when it illegally outsourced these workers. It was not sorry when it dragged them all the way to the High Court, or when it argued it should have to pay them no compensation at all. Qantas is only sorry now that it has to pay the largest penalty fine of any employer in Australian corporate history.”
Following the ruling, the TWU urged Qantas to fund secure jobs in its supply chain, noting Swissport staff face up to 400 safety reports a month at some airports.
“If Qantas is serious about changing its behaviour it will now move to improve standards for workers in its supply chain at companies like Swissport still suffering appalling safety incidents, under-staffing and low pay,” Kaine remarked.
Qantas response
The flying kangaroo accepted the Federal Court’s penalty for its ground handling outsourcing, acknowledging the ruling and the impact on employees.
“We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result,” Qantas Group CEO Vanessa Hudson said.
“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.
“The impact was felt not only by those who lost their jobs, but by our entire workforce.
“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 as we work to earn back the trust we lost.”
