SYDNEY: An Australian court fined Qantas A$90 million (US$59 million) on Monday (Aug 18) for illegally laying off 1,800 ground staff during the COVID-19 pandemic, ending a five-year legal battle over the workers’ rights.
Federal Court Justice Michael Lee said he wanted the penalty to be a “real deterrence” to firms that might be tempted by the financial rewards of breaching employment law.
Qantas decided to sack the workers and outsource their jobs in August 2020, a period of lockdowns and border closures when no COVID-19 vaccine was widely available.
Australia’s Federal Court subsequently found that Qantas had acted illegally despite its stated “commercial imperatives” because it prevented staff from accessing their rights to collectively bargain or take industrial action.
It later dismissed an appeal by the airline.
In imposing the penalty, the largest ordered by a court on a company in the history of Australia’s labour laws, Lee also inveighed against the airline’s litigation strategy.
While Qantas made changes to its board and management team, Lee said subsequent expressions of regret seemed more aligned with “the damage” the case had done to the company than remorse for the harm caused to workers.
“I accept Qantas is sorry, but I am unconvinced that this measure of regret is not, at least in significant measure … the wrong kind of sorry,” he added.
Long-dubbed the “Spirit of Australia”, 104-year-old Qantas has been on a mission to repair its reputation, which was hit in recent years by the illegal sackings, soaring ticket prices, claims of sloppy service, and the selling of seats on already-cancelled flights.
Qantas chief executive Vanessa Hudson took over in 2023, promising to improve customer satisfaction.
She replaced Alan Joyce, who stepped down earlier than planned as Qantas endured criticism over its treatment of workers and passengers, despite delivering bumper profits for shareholders.
