In a landmark ruling, Qantas has been fined A$90 million after a court found it unlawfully sacked over 1,800 ground workers during the pandemic, making it the largest penalty in Australian history related to workplace law violations. This decision, which has been applauded by the Transport Workers' Union, serves as a stern warning to other companies against similar misconduct.
Qantas Faces Historic Penalty for Pandemic Layoffs
Qantas Faces Historic Penalty for Pandemic Layoffs
Australia's Qantas Airline is hit with an unprecedented A$90m fine for unlawful termination of employees during the COVID-19 pandemic.
The Federal Court's ruling reflects an ongoing legal saga since Qantas' controversial 2020 decision to outsource its ground operations, a move the airline defended as vital for financial survival amid the pandemic. Justice Michael Lee articulated that the hefty fine aims to deter other corporations from contemplating such risky employment practices, asserting that the consequences should be significant enough to influence corporate behavior.
Qantas CEO Vanessa Hudson expressed remorse, apologizing to the affected employees and acknowledging the substantial hardships caused by the layoffs. Following the ruling, Qantas is now required to channel A$50 million of the penalty directly to the Transport Workers' Union, which initially litigated the matter. With Qantas already set to pay A$120 million in compensation to the laid-off workers, experts have pointed out that the court's ruling may not be a strong enough disincentive for other companies to avoid similar practices, raising concerns about potential future violations.
Justice Lee also scrutinized the corporate ethos at Qantas, questioning the sincerity of the airline's remorseful stance. Notably, the court previously ruled that the airline outsourced to preempt any potential industrial action from its workforce, predominantly composed of union members. This fine is compounded by past scandals involving Qantas, which included a previous penalty of A$100 million for selling tickets on flights that were subsequently canceled.
As the repercussions of this ruling unfold, critics suggest that the government may need to evaluate and potentially enhance penalties associated with workplace violations to dissuade corporate malfeasance effectively.
Qantas CEO Vanessa Hudson expressed remorse, apologizing to the affected employees and acknowledging the substantial hardships caused by the layoffs. Following the ruling, Qantas is now required to channel A$50 million of the penalty directly to the Transport Workers' Union, which initially litigated the matter. With Qantas already set to pay A$120 million in compensation to the laid-off workers, experts have pointed out that the court's ruling may not be a strong enough disincentive for other companies to avoid similar practices, raising concerns about potential future violations.
Justice Lee also scrutinized the corporate ethos at Qantas, questioning the sincerity of the airline's remorseful stance. Notably, the court previously ruled that the airline outsourced to preempt any potential industrial action from its workforce, predominantly composed of union members. This fine is compounded by past scandals involving Qantas, which included a previous penalty of A$100 million for selling tickets on flights that were subsequently canceled.
As the repercussions of this ruling unfold, critics suggest that the government may need to evaluate and potentially enhance penalties associated with workplace violations to dissuade corporate malfeasance effectively.
