Australian airline Qantas has been ordered to pay a record fine of $58,64 million for unlawfully dismissing 1,800 employees during the pandemic, the Federal Court in Sydney has ruled. This is the largest penalty ever imposed on a company in the history of Australia’s labor laws, Reuters reports.
Judge Michael Lee emphasized that Qantas’ 2020 decision to outsource ground handling work was unlawful because it prevented employees from exercising their rights and organizing through unions. He added that the apologies issued during the proceedings did not reflect genuine remorse for the harm done to staff, but rather a reaction to the reputational and financial damage the company had suffered.
Of the total penalty, 50 million Australian dollars will be paid to the Transport Workers’ Union (TWU), which initiated the legal action. Its leader, Michael Kaine, said the ruling proved that even the largest employers can be held accountable. “Against all odds, we stood up to a giant that showed ruthlessness – and we won,” Kaine stated.
The fine follows an earlier settlement in December last year, when Qantas agreed to pay 120 million Australian dollars in compensation to the dismissed workers. According to legal experts, the case is of historic significance as it is rare for courts to recognize “adverse action” on such a large scale, and the size of the penalty is expected to serve as a warning to other employers.
Despite the ruling, Qantas shares fell slightly, while CEO Vanessa Hudson said the company would comply with the decision and pay the fine. “We sincerely apologize to each of the 1,820 employees and their families,” Hudson said, Reuters reports.
