The Australian airline Qantas has been handed a historic fine of A$90 million (approximately £43 million or $59 million) by a federal court following the unlawful dismissal of over 1,800 ground staff during the pandemic. The Transport Workers' Union, which represented the affected employees, celebrated the ruling as a significant win in labor rights, marking the highest penalty ever imposed under Australia’s Fair Work Act.
Federal Court Justice Michael Lee emphasized that the hefty fine aims to dissuade other companies from similar wrongful actions. Qantas acknowledged the penalty, with CEO Vanessa Hudson issuing a heartfelt apology to those affected. She stated that the decision to outsource employees amid financial struggles was a misstep that led to "real harm" for the workers and their families.
The airline's legal issues began with decisions made in 2020 as air travel ground to a halt. The court's ruling also mandated Qantas to pay A$50 million directly to the union involved in the lawsuit. Despite this penalty, some experts argue that it might not be enough to deter companies from making similar decisions in the future.
Judge Lee's comments on Qantas' corporate culture questioned the airline's commitment to rectifying its actions. In addition to this latest fine, Qantas is also obligated to pay A$120 million in compensation to affected workers in 2024. The airline continues to grapple with scrutiny following other scandals, including hefty fines for making false promises about canceled flights.
Federal Court Justice Michael Lee emphasized that the hefty fine aims to dissuade other companies from similar wrongful actions. Qantas acknowledged the penalty, with CEO Vanessa Hudson issuing a heartfelt apology to those affected. She stated that the decision to outsource employees amid financial struggles was a misstep that led to "real harm" for the workers and their families.
The airline's legal issues began with decisions made in 2020 as air travel ground to a halt. The court's ruling also mandated Qantas to pay A$50 million directly to the union involved in the lawsuit. Despite this penalty, some experts argue that it might not be enough to deter companies from making similar decisions in the future.
Judge Lee's comments on Qantas' corporate culture questioned the airline's commitment to rectifying its actions. In addition to this latest fine, Qantas is also obligated to pay A$120 million in compensation to affected workers in 2024. The airline continues to grapple with scrutiny following other scandals, including hefty fines for making false promises about canceled flights.
